World coconut shortage to push up prices

A GLOBAL coconut shortage means the cost of products could be set to rise.

Production of coconuts is stagnating as a result of declining productivity, according to a new report from the Organisation for Economic Co-operation and Development. The trend is mainly due to aged palms, pests and diseases, and pushed prices to a record high of $2,000 (£1,500) per metric ton in May, according to Bloomberg data.

And in a sign that the shortage may now be hitting the UK consumers, Asda shows coconuts as sold out online. And at other major supermarkets, including Waitrose, Sainsbury’s and Tesco, single coconuts have risen in price and are now selling at between 15 to 30 per cent above the annual average.

Over the past three years in Britain, annual spending on coconut water has surged from £3.9 million to almost £33million, according to consumer research group Kantar Worldpanel.