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How This Hidden Drought Is Devesatating Coconut Farmers And Coconut Oil Supply

How This Hidden Drought Is Devesatating Coconut Farmers And Coconut Oil Supply

Inside the crisis unfolding in the Philippines, how it's affecting coconut farmers and your coconut oil supply. Plus, how your lip balm purchase can be part of the solution.

Coconut Production Is Shrinking

The Philippines, the world's largest coconut producer, is experiencing its worst drought in decades. Triggered by the El Niño phenomenon and compounded by successive typhoons, this prolonged dry spell has led to a significant decline in coconut yields. Trees that once produced over 20 coconuts per harvest are now yielding just 3 to 4. Moreover, the coconuts harvested have significantly less meat, the vital component used to produce coconut oil.

According to the Philippine Coconut Authority, coconut production has plummeted by 20% this year. This drastic reduction not only threatens the livelihoods of thousands of smallholder farmers, but also disrupts the global supply chain of coconut-derived products.

Coconut farmer shows how little meat there is on coconuts due to the drought
One of our farmers holds out a coconut, showing how small it is and how little meat there is.

The Ripple Effect: From Farm to Your Pantry

You might be wondering, "How does this affect me?" Here's how:

  • Reduced Coconut Meat: With less meat per coconut, more coconuts are needed to produce the same amount of oil, increasing production costs.

  • Supply Shortages: The global demand for coconut oil remains high, especially in the food, cosmetic, and biofuel industries. The reduced supply from the Philippines exacerbates the scarcity, leading to potential shortages.

  • Rising Prices: The combination of high demand and low supply has driven coconut oil prices to record highs in 2025. Consumers may notice increased prices for products containing coconut oil, from cooking oils to skincare items.

Our Commitment: Supporting Farmers Through the Drought

At Dignity Made, we are deeply connected to our farming partners in the Philippines. In response to this crisis, we've taken the following steps:

  • Increased Compensation: We've raised the price we pay per coconut to help farmers offset their reduced harvests.

  • Emergency Aid: We are distributing sacks of rice to 160 farming families, ensuring they have essential food supplies during this challenging period where farmers have told us they are skipping meals to make ends meet.

  • Sustained Purchasing: Despite the decreased yields, we continue to purchase coconuts to provide consistent income for our farmers.

These initiatives are unbudgeted expenses, but we believe in standing by our coconut farmers when they need us most.

How You Can Help Coconut Farmers During This Drought

When the rains don’t come, our farmers pay the price. 

But if you want to help, buying our lip balm is the single most effective way to help.

Here’s why:

  • Our lip balm includes ingredients that are not in short supply, like carnauba wax and shea butter, which means we’re able to keep production steady even as coconut yields drop.
  • We prepared ahead: we built up our lip balm inventory at the beginning of the year, so we’re not facing any stock issues there.

Of course, buying our coconut oil helps too! We know it may seem strange to buy more of what we’re struggling to produce, but your purchases now give us the cash we need upfront to keep going strong and supporting those hit hardest.

Two easy ways to help:

  • Buy Lip Balm on Our Website – Choose your favorite flavor and support with purpose. Plus, try our new formula that's firmer

  • Shop on Amazon Prime – We just added last year’s lip balms to Amazon (now with $5 off!) for quick and easy delivery.

When you buy a lip balm, you're not just nourishing your lips. You're helping a farmer weather a season of drought with dignity 💛

Together, we can help sustain the communities that provide us with the products we love.

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