The United Coconut Association of the Philippines Inc. (UCAP) said it now hopes the delisting of the internationally traded fruit as a major food allergen from the category set by the United States Food and Drug Administration (USFDA) would also help resolve the remaining issues faced by the local industry.
Yvonne Agustin, UCAP executive director, said in an interview yesterday coconut oil was experiencing limited market access to the United States (US) and the European Union (EU).
Bianca Sykimte, director of the Export Marketing Bureau, gave more details to reporters in a text message: The US had previously issued health warnings on coconut oil as a saturated fat.
Meanwhile, exporters of coconut oil to the EU continue to face the potential impact of a proposed regulation on the limits in food of mineral oil saturated hydrocarbon (MOSH) and mineral oil aromatic hydrocarbons (MOAH) content.
The European Food Safety Authority (EFSA) on its website warns these are chemical compounds obtained mainly from the distillation and refining processes undergone by vegetable oils.
EFSA says these types of mineral oil hydrocarbons have a potential impact on human health, such as possibly cancer from MOSH.
It says some MOSH substances are known to accumulate in the liver and lymphoid system.
The American Heart Association, meanwhile, cites some benefits of this particular vegetable oil, saying on its website coconut oil contains auric acid, which is a medium-chain saturated fat that may raise good cholesterol levels.
Agustin said despite the health warnings, however, export of coconut oil to the US continues.
But certainly volume could be better if there were no barriers,” Agustin told Malaya Business Insight.
In the EU, adjustments would be needed to stay within the allowable limits of MOSH and MOAH, she added.
Agustin said although the official range on the limits has yet to be set, buyers are already setting strict requirements.
“That lessens the competitiveness of coconut oil,” she added.
On Sunday, Agustin said in a statement UCAP welcomes the removal of coconut from the USFDA’s allergen list.
“Removing coconut as a tree nut eliminates one issue against it. Hopefully, the other market issues will also have their successful conclusion,” she said.
Neither Sykimte nor Agustin provided estimates on the potential extent of business losses resulting so far from these restrictions.
In 2024, coconut oil exports rose 85 percent to $2.2 billion from $1.18 billion in 2023, data from the Philippine Statistics Authority showed.