The Philippines plans to ship an additional 30,000 metric tons of coconut oil annually to Australia in line with efforts to cater to growing demand from Australian industries and consumers.

Jose Leonardo Tañada, managing director of Ares Merchants Philippines Inc. (AMPI), a key player in coconut oil exports and a consistent supplier to Australia, told senior trade and investment commissioner Luisa Rust of the Australian Embassy the higher demand would boost Philippine coconut oil export revenues by an estimated $70 million.

Tañada emphasized AMPI’s strategy of targeting premium markets such as Australia, where pricing benefits can be passed on to Filipino coconut farmers. “Targeting affluent markets supports higher returns, directly benefiting local farms and helping to balance the country’s trade deficit.”

He said in Australia, there is increasing demand for coconut oil in various industries such as food and beverages and cosmetics and personal care as more appreciate the product’s health benefits and taste preference.

Additionally, by increasing coconut oil exports, AMPI’s export growth aspirations also aligns with the Department of Trade and Industry’s drive to strengthen coconut exports and boost the country’s agricultural economy. As one of the largest global coconut producers, the Philippines has relied on coconut products as a cornerstone of its agricultural exports, contributing around 35 percent of the sector’s total share over the years.

She further emphasized the economic benefits of importing coconut oil from the Philippines, noting that Australia’s coconut oil market has grown significantly. This growth is driven by the increasing interest in coconut-based cuisine, rising demand for natural and organic products, and awareness of coconut oil’s health benefits, particularly its high concentration of medium-chain fatty acids. Additionally, coconut oil’s diverse applications in cosmetics and skincare products contribute to its expanding market presence in Australia.