Coconut prices increase sharply, farmers in the West make a big profit

Traders buy coconuts in the Mekong Delta.

Hot sale, high price

Cang Long, Tieu Can, Cau Ke districts... are the places with the largest coconut acreage in Tra Vinh province; currently, people are talking excitedly about the continuous increase in raw coconut prices. Mr. Nguyen Van Khoi, residing in Binh Phu commune (Cang Long district), said: "I have been growing coconuts for many years but have rarely witnessed a record increase in coconut prices and demand like now. If at this time last year, the price of coconuts purchased by traders for domestic consumption and export was only 100,000-120,000 VND/dozen (12 fruits), now the price has skyrocketed to 200,000-210,000 VND/dozen, the highest in many years. My family cultivates 12 hectares of coconuts, with this price, each harvest brings in millions of dong. How happy!". Showing us his family's 14 hectares of coconuts, Mr. Le Van Cao, also residing in Binh Phu commune, revealed that this is the main source of income . In recent years, many family expenses have depended on the monthly sale of coconuts. Therefore, when coconut prices increase like this, it will help farmers live well and still have money to save.

Mr. Ngo Huu Su, Director of Van Hung Coconut Cooperative (Binh Phu Commune, Cang Long District), acknowledged: "The Cooperative is in need of purchasing about 30,000 dry coconuts per day to supply factories processing various coconut products and for export; however, with great effort, we can only purchase about 10,000 coconuts. The price of coconuts being purchased from people is 200,000-210,000 VND/dozen, plus transportation costs of 15,000-20,000 VND/dozen, so the price to the factory is 215,000-230,000 VND/dozen. Although the price of coconuts is very high, because it is the off-season, the coconut output is not much...". According to the Department of Agriculture and Environment of Tra Vinh province, the whole province has about 27,500 hectares of coconuts, with more than 90,000 farming households; Currently, people who harvest coconuts at this time all get high profits.

In Ben Tre , where there are about 80,000 hectares of coconut trees, the largest in the country in terms of area, people are currently excited because of the high price. Ms. Le Thi Thu, residing in Phu Long commune (Binh Dai district) confided that while a few years ago the price of dry coconuts fluctuated at only 50,000-70,000 VND/dozen, recently businesses and traders have been hunting for coconuts at record high prices. Honestly, coconut farmers never thought that the price would exceed 200,000 VND/dozen like now; therefore, many households were surprised. In addition, because it was the off-season, the number of households that hit the jackpot with high-priced coconuts was not widespread.

Finding a sustainable path

According to coconut processing and exporting enterprises in the Mekong Delta, the reason for the sharp increase in coconut prices and the shortage of raw materials is due to the off-season, combined with reduced productivity; in addition, the situation of coconut exports to China and other markets is also quite good, so the coconut output in the Mekong Delta cannot meet the demand. It is forecasted that coconut prices will remain high, because the main coconut harvest will not be until August and September.

According to the Ministry of Agriculture and Environment, the country has nearly 200,000 hectares of coconut, mainly concentrated in the Mekong Delta and the central coastal provinces. From a modest export figure of only 180 million USD in 2010, the coconut industry has grown strongly and reached an export turnover of 1 billion USD in 2024. At the end of October 2024, Ben Tre province held a ceremony to announce the official export of fresh Ben Tre coconuts to the Chinese market, creating a fundamental step for the coconut industry. Currently, Ben Tre has 133 growing areas and 14 packaging facilities granted export codes to the Chinese market. According to a survey, China consumes about 4 billion coconuts annually, of which about 2.6 billion are fresh. The demand is large, but China's production capacity is limited, this is an opportunity for Vietnamese coconuts to enter this billion-people market.

Coconut farmers in Tra Vinh have made good profits thanks to high coconut prices.

However, in order to ensure sustainable coconut exports, the Ministry of Agriculture and Environment calls on all production, packaging and export units to strictly comply with food safety regulations, quality standards and plant quarantine procedures as mentioned in the protocol and related regulations. It should be noted that compliance with the protocol and related regulations of China will not only help improve the quality of our products, but also open up opportunities to access other markets in the world.

Mr. Le Van Dong, Deputy Director of the Department of Agriculture and Environment of Tra Vinh province, said that up to now, the province has been granted 20 growing area codes, of which 10 codes are eligible for export to China. Because the coconut growing area in Tra Vinh is still fragmented, the granting of codes is limited. The province is re-planning concentrated growing areas, aiming at VietGAP, organic and calling on components to participate in the coconut industry value chain to standardize the process from production to export, especially the potential market of China...

In Ben Tre, in 2021, the province issued Resolution No. 07 on building concentrated production areas, linking the development of the value chain of key agricultural products in Ben Tre province for the period 2020-2025 and orientation to 2030. In which, coconut products are a fairly large chain with a wide level of linkage... According to the Department of Agriculture and Environment of Ben Tre province, up to now, the province has built a pilot of 6 concentrated coconut production areas. Of which, 5 production areas follow organic standards and 1 coconut water production area. Along with developing the coconut value chain, the province has built dozens of cooperatives and cooperative groups to participate in linking and organizing production associated with the companionship of large enterprises in the coconut product chain. From the linkage models associated with enterprises, hundreds of coconut processing facilities have been formed, creating many jobs for local workers; at the same time ensuring output for coconut growers. Mr. Nguyen The Phuong, Deputy Director of Global Connection Food Company Limited (Tien Giang) said that in order for the coconut industry to develop and export to grow, it is necessary to link production farmers, consumption enterprises and the government in support. It is necessary to build policies based on the characteristics of coconut and according to each stage of supply. For example, when the supply is low, the policy should focus on domestic consumption; when the supply is abundant, it is necessary to focus strongly on export...

Building a value chain for the coconut industry

According to Ms. Nguyen Thi Kim Thanh, President of the Vietnam Coconut Association, our country has the 5th largest coconut growing area in the world and is the 4th largest coconut product exporting country in the Asia - Pacific region. Over the past decades, the Vietnamese coconut industry has provided a rich source of raw materials for products such as coconut meat, coconut water, coconut oil, etc., while creating jobs and improving the lives of millions of farmers and workers. In addition to the above advantages, the coconut industry faces difficulties due to low productivity, unsatisfactory development of the value chain, and limited connection with the international market. Therefore, it is necessary to build a comprehensive, modern and sustainable value chain to help the Vietnamese coconut industry grow in the coming time.

Mr. Dang Dinh Long, Chairman of the Board of Directors of Mega A Logistics Company, informed that currently, in addition to transporting coconuts for export by road through border gates, the type of sea transport is proving to be economically effective. Cold chains, storage facilities, freezing facilities... for export to the Chinese market have been improved and upgraded. The total logistics cost is only about 3,000 VND/coconut, and at the same time, it is inspected and cleared quickly by the quarantine agency of the General Administration of Customs of China (about 12 hours). The problem is that all signed protocols must be strictly followed by exporting enterprises, cooperatives, farmers... because if a shipment is found to be in violation, it will cause economic damage and many more consequences later (such as increased inspection or revocation and not being allowed to export...).

Article and photos: PHUOC BINH

Source: https://baocantho.com.vn/dua-tang-gia-manh-nong-dan-mien-tay-trung-dam-a185793.html