- High international and local shipping rates as well as domestic transport cost (farm to processing sites);
- High labor and power costs;
- Unstable/limited supply of coconut husks;
- High cost of equipment;
- High concentration of decorticating plants in one area resulting to heavy competition for the supply as well as price war for husks; and
- Strong competition with major coir producers and exporters, India and Sri Lanka and lately, Vietnam and Thailand.