In Malaysia and other parts of Asia, coconut and related product prices are soaring — and officials say there are several factors putting pressure on supply chains. For one, coconut suppliers have been dealing with hotter temperatures and unpredictable weather.
What's happening?
The price of coconut milk in Malaysia has nearly doubled from 2023 to now, based on data from the Department of Statistics Malaysia. According to the New Straits Times, Malaysian food security minister Datuk Seri Mohamad Sabu said one reason for the surge is the import of more expensive coconuts from Indonesia to make up for a local shortage.
There has also been higher coconut demand from China, driving up Indonesian prices. Malaysia must import about 30% of its coconut supply — 98% of which comes from Indonesia — since it doesn't produce enough of the fruit on its own.
Higher temperatures and extreme weather, including droughts, are becoming more common and more severe because of human-induced rising global temperatures — and they've disrupted crop yields and output in Malaysia as well as Indonesia. Higher temperatures can also cause young coconuts to drop early, which affects coconut milk production since milk is sourced from mature coconuts.
Why are rising coconut prices important?
Coconut and coconut milk are staple ingredients in Malaysian cuisine, but higher prices and local shortages put pressure on shoppers. Officials have urged consumers to find cheaper alternatives for their recipes, such as evaporated milk and yogurt.
This is another example of how climate-driven food inflation makes everyday groceries, including staples such as coffee and rice, more expensive and harder to access for people around the world — straining families and businesses as well as driving food insecurity in vulnerable communities.
Ongoing supply disruptions can also push farmers toward aggressive, unsustainable farming practices in an effort to keep up, putting more stress on ecosystems that are already fragile.
What's being done about rising food prices?
In the short term, Malaysia is importing Indonesian coconuts to cover local demand. The country has also signed an export deal with China to boost local coconut farming and help farmers adopt more sustainable practices. It should also make the Malaysian coconut more competitive internationally, in turn raising the income of local farmers and boosting the national economy.
But the best way to protect our crops worldwide is to stop global temperatures from continuing to rise. For example, we can consider alternative transportation and reduce our energy consumption, which not only lowers utility bills but also cuts down on harmful pollution. For even more tips, learn how to shop smarter at the grocery store — you save money and prevent food waste, and wasted food means wasted water, energy, and land.
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