A six-month supply pressure of coconut in Malaysia is forcing coconut milk dealers to conscientiously pass on the cost.
A short-lived go at imports in February 2025 has not helped either in dealing a killing blow to the hiking prices.
According to the Malay Mail, santan or coconut milk was costing 19 ringitt ($4.40) a kg in late April 2025, up from 11 ringitt ($2.55).
2025 is not the only exception for santan has been experiencing a yearly 2% price uptick, beginning 2019.
Starting February 2025, the selling price first hit 20 ringitt ($4.63) per kg, making customers feel the pinch.
This has affected santak foods, including kue lapis or layered rice cake and nasi lemak or rice in coconut milk.
The above rice dishes satiate their liquid ingredient thirst on coconut milk. For this reason, typical breakfast canteens spend at least 5 kg of milk to make these concoctions daily.
Currently, traders have no choice but to add 50 cents above the normal 3 ringitt ($0.69) per nasi lemak dish sale.
The same reluctant passing of costs to consumers informs kue lapis’ sales, albeit via scaling down of the product’s size. Currently, kue costs at least 0.80 ringitt ($0.19) apiece.
Outside the prepared food zone is fresh grated coconut, now costing 12 ringitt ($2.78) a kg, up from 7 ringitt ($1.62).
Although many retail grade packet coconut milk is on sale across Malaysia, most traders prefer the raw product from farmers.
With the severe shortage, however, it seems inevitable to go the packet way unless production of coconut (Cocos nucifera L.) upscales.
Since July 2024, Malaysia has seen its coconut output drop by 50% in some production zones due to climate vagaries.
Coconut milk prices in Malaysia are therefore still up since October 2024 due to a production downturn. And as the statistics below reveal, the industry is quite a revenue earner for the country.
Malaysia Coconut Milk Statistics
Coconut and its products ranks fourth in value among agricultural goods in Malaysia next to palm oil, rubber and paddy. Malaysia is the 12th biggest coconut producer in the world at 535,68 tonnes, as of 2018, according to governmental figures. Despite this prominence, the country has to annually import 250,000 tonnes of coconuts-in-shell to meet surging consumption needs. The coconut milk industry itself is quite huge, with an estimated 2025 market value of $88.3 million, according to Fortune Business. This is over half the overall coconut industry production value of 666.7 million ringitt ($154.4 million), as of 2021.
What is the share of coconut milk in Malay distribution chains?
According to a 2024 state survey, fresh coconut milk represents at least 11.9 % of coconut products in a farmer’s market. Processed coconut milk (liquid or powder) in supermarkets meanwhile makes up 56.4% of retail coconut products. This is even while grated coconut represents 10.6% of farmers’ market sales and 34.4% at retail.
Which are the top coconut-producing states in Malaysia?
In 2016, Perak in the west ranked third in production at 87,890 tonnes while Johor in the southern peninsular ranked second with 97,677 tonnes. In the first place was Songor on the western coast with 99,674 tonnes.