Biodiesel competition
Indonesian B40 mandate is pulling palm-kernel-derived fractions away from food/nutra use into biofuel feedstock. The squeeze is structural, not seasonal — expect it to deepen through 2027.
Philippine supply is steadier but capacity-constrained; new processing investment is 18 – 24 months out.
Hedging plan
Book 6-month forward contracts at the current strip. Diversify supplier base across both Philippines and Indonesia to dilute country-specific risk.
Lock C8 pure separately — premium widening to C8/C10 blend reflects underlying tightness in C8 specifically. Brands selling C8-pure positioning (ketogenic, performance) most exposed.
Alt sources
Malaysian refiners offer limited availability at 4 – 7% premium to PH/ID benchmark. Sri Lankan coconut-derived MCT is niche and operationally complex but viable as a 10 – 15% diversification slice.
Don't qualify Vietnamese-origin without third-party heavy-metal verification — quality variance is real.
Demand-side trends
Indian nutra demand for MCT grew 22% YoY through 2025, driven by ketogenic positioning and coffee-creamer launches.
Forward demand growth modelled at 18 – 24% YoY through 2027. Supply growth modelled at 6 – 9%. The gap is structural.
§ KEY TAKEAWAYS
- 01Book 6-month forward contracts now
- 02Diversify supplier base across both PH and ID
- 03Lock C8 pure separately — premium widening to C8/C10
- 04Qualify Malaysian as third-source diversification
- 05Demand-supply gap is structural through 2027
§ GLOSSARY
Technical jargon, acronyms and scientific terms used in this file — decoded.
- MCT
- Medium-Chain Triglyceride — fatty acids 6–12 carbons long, prized for fast energy metabolism and ketogenic positioning.
- C8 / C10
- Caprylic acid (C8) and capric acid (C10) — the two MCT fractions most associated with ketone yield.
- RBD
- Refined, Bleached, Deodorised — the standard processing route for edible oils to remove colour, odour and free fatty acids.
- Crude oil basis
- Pricing referenced to raw, unrefined coconut or palm-kernel oil, the upstream feedstock for MCT.
