The Coconut Conundrum: Price Surges and Shortages in Malaysia
Unprecedented Price Hikes in Coconut Milk
Over the past four months, the price of coconut milk in Malaysia has skyrocketed from RM11 to a staggering RM18 per kg, with prices reaching as high as RM20 in some areas. This drastic spike can be attributed to a nationwide shortage of coconuts that has sent ripples through the economy and left many consumers and businesses grappling with its aftermath.
Kerala born Kuthubuddeen Sultan, currently hang around Chowrasta Market and a well-experienced coconut milk vendor of more than four decades shared his experience: "Before Deepavali on Oct 30 last year, the price of coconut milk was between RM9 and RM11 per kg. After the festival, it started increasing gradually and now, I am selling it at RM16 per kg because I don’t have the heart to charge my customers too much,” Sultan said..
Middle-aged Mohd Munir Mohd Rashidi echoes this sentiment, another source of knowledgeable human "This increase has significantly affected our ability to prepare traditional Malaysian Arisen dishes like lemang, curries, and rendang.”
See the detrimental price vs Time trend of Coconuts in Malaysia post Deepavali till the updated prices:
| Time Interval | Coconut Price ( per Kg) |
|---|---|
| Pre – Deepavali | RM5.00 |
| Post – Deepavali | RM9.00/10.00 |
The government have initiated secure supplies from Sabah and the islands off Palembang in Indonesia in coordination with Agriculture and Food Security Ministry Secretary-General Datuk Seri Isham Ishak, so the supply from Palembang is scheduled to arrive in March.
Factors Driving the Coconut Shortage
Natural Phenomena and Aging Coconuts
Andrew, a coconut supplier from Perak, identifies this shortage as a natural phenomenon that has occurred before, notably in the 1990s. “This happened before in the 1990s, and it’s happening again now," Andrew clarified. Joel Jeyachandran, a major coconut supplier in Penang, highlights the role of coconut age in production.
He hopes that the weather prognosis would soon improve and the coconut trees would produce more coconuts. Both suppliers say if the trend continues, future supplies may steadily decrease.
Impact on Consumers and Vendors
The dramatic price hike in coconut milk is significantly impacting consumers, especially ahead of major festivals like Ramadan and Hari Raya. The cost of traditional Malay dishes which are prepared for these festivals and hamper its integration has nearly doubled from RM1,800 to RM3,900 per tonne.
**Pro tip: Always check the market price before purchase.
Consumer anxiety is palpable, as they brace for further price hikes. Johariyn Abdul from Penang and a 3rd-generation notable Hokkien noodles cook station owner in CHowrasta Market noted how this has hugely impacted her business. “
With this recent increase, the core diet for Hokkie Ng consumers which is the Hokkie Noodles may become a defunct memory or luxury to remember for the children in future.”
Government Intervention and Potential Solutions
To mitigate the acute coconut shortage, authorities have taken proactive measures by securing 164,000 coconuts from Sabah and the islands off Palembang in Indonesia.
The Agriculture and Food Security Ministry hopes these efforts will alleviate impending price hikes. "The government is taking steps to ensure a stable supply of coconuts, and we urge citizens to remain calm as we navigate the current challenges" said Isham Ishak
Coping Strategies for Businesses and Consumers
Priced items
Businesses dealing with coconut milk, such as restaurants and street food vendors, are exploring various means to navigate renewed pricing strategies as well as creating substitutes.
Food Sourcing Alternatives
Experts suggest diversifying food sourcing options. For instance, businesses can source supplies locally or explore international markets to reduce dependence on local shortages.
Businesswise” It’s crucial to diversify your food sourcing options, which means looking beyond local markets and considering international suppliers. " Engages Sherman Yew, a retired Electric and Gas Researcher Inc. CEO.
He noted" Through the Forearray network increase your industry source network exposure to reduce this hit ."
Cost Management and Menu Adjustments
Additionally, small businesses are actively seeking cost-efficient practices. Larger enterprises should adjust menus or introduce alternatives that fulfill customer demands without compromising quality.
Gallery-inventative street food vendors such as Bin Rashid Idris and Albert Putra have juggled the use of replacing old flavors of coconut milk with other substitute household materials. despite the price increment, his business has exceeded even unimaginable expectations.
Additionally, safeguarding rainforests and ecosystems will encourage a bountiful coconut tree harvest.
Many prominent scientists and industry experts alike concured
Frequently Asked Questions (FAQs)
What has caused the sudden shortage in coconuts?
The shortage is primarily due to natural, seasonal phenomena that have led to a decline in coconut production, similar to incidents in the 1990s.
How long will the coconut shortage last?
While predictions are challenging, rising demand and improving weather conditions should eventually stabilize production.
How will the government address the shortage?
The government has imported 164,000 coconuts to bolster stocks and mitigate the impact on prices.
What can consumers do to cope with high coconut milk prices?
Exploring bulk purchases for community use, food sourcing, and learning mobility and economic handling tactics.