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Wall Street Journal - Coconuts Go Upscale, Boosting Price of Conventional Coconut Oil
April 16, 2016

Coconut water and sugar make a splash, reducing supply for use as ingredients in less sexy products like dish detergent

Demand for specialty coconut products like drinks and sugar has pushed up prices for basic oil used in such things as dish detergent. Above, a worker runs behind a horse carrying coconuts in September 2015 during harvest time at a coconut plantation in Banyuwangi, Indonesias East Java province.ENLARGE
Demand for specialty coconut products like drinks and sugar has pushed up prices for basic oil used in such things as dish detergent. Above, a worker runs behind a horse carrying coconuts in September 2015 during harvest time at a coconut plantation in Banyuwangi, Indonesias East Java province. PHOTO: REUTERS/ANTARA FOTO

Coconut oil prices have soared nearly 20% in a month, largely because of the growing popularity of specialty products such as coconut water.

In supermarkets, coconuts are being sold with pull tabs to be drunk like beer. Coconut sugar is being touted as healthier for diabetics. And U.S. actress Gwyneth Paltrow is among celebrity coconut fans, once revealing she swishes around virgin coconut oil for oral health and whitening her teeth.

More coconut growers are harvesting their fruit young for the water instead of allowing them to mature for coconut oil, creating a shortage in the oil market.

Such trendy products come from young green coconuts, fresh coconut and the trees flowers. That leaves less dried coconutcoprato be made into the conventional oil that is used in everything from dish detergent to medicine.

The result has been a jump in prices since February, to an average in March of $1,448 a metric ton, according to World Bank data released late Wednesday. That is more than 50% higher than the average price in 2013.

more....
http://www.wsj.com/articles/coconuts-go-upscale-boosting-price-of-conventional-coconut-oil-1460017362