Coconut prices skyrocket, but export businesses are still worried.

The price of fresh coconut and dried coconut at Phu Nhuan market (Phu Nhuan district, Ho Chi Minh City) has increased sharply in recent days - Photo: THAO THUONG

Fresh coconut prices have increased sharply due to scarce supplies, even though Vietnam is the world's leading coconut exporter (over 1 billion USD in 2024) with a growing area of ​​200,000 hectares.

Coconut prices are racing to increase

On March 25, Tuoi Tre Online recorded that coconut prices have increased sharply in recent days, with dried coconut prices increasing more sharply than fresh coconuts.

According to the market, at Phu Nhuan market (Phu Nhuan district, Ho Chi Minh City), fresh coconuts cost 15,000 VND/fruit; selected coconuts with lots of water and thin flesh cost 25,000 VND/fruit.

Meanwhile, the wholesale price of 12 coconuts is 150,000 VND, and dried coconuts are up to 200,000 VND/dozen of 12. This price is 20,000 - 30,000 VND/dozen higher than at the beginning of the year.

Mr. Nguyen Van Xuan (selling coconut at Phu Nhuan market) said that fresh coconut prices are increasing, dried coconut (raw coconut) is "burning hands" because the price is higher than fresh coconut.

Coconuts are sourced from the Western provinces. This source has been used for many years, so we can select delicious coconuts with lots of water. In March, the source is already scarce, and at the peak in May and June, coconut prices will increase further, Mr. Xuan predicted.

The reason for the sharp increase in coconut prices in recent days, according to businesses, is that Vietnamese coconuts are exported to China, the US, and EU countries are also opening up, retailers are hunting for Vietnamese coconuts.

Explaining the reason why the price of dried coconut is higher than fresh coconut, Mr. Tran Trung, a market employee of an agricultural export company in Ho Chi Minh City, explained that dried coconut is for deep processing, China does not buy raw coconut but instead invests in deep processing in Vietnam such as coconut milk, frozen coconut water, etc.

In addition, Indonesia, the world's largest coconut producer, imposes taxes on raw coconut exports, and other deep-processing investors such as India, Pakistan, Sri Lanka, and Thailand are shifting to the Vietnamese market.

Export businesses worry about unstable supply

According to export enterprises, Vietnam has many types of coconut: Siamese coconut, fire coconut, pineapple coconut...

However, there is no planning for growing areas, purchasing is not uniform, and the competitiveness of fresh Vietnamese coconuts in the world market is still weak, so businesses are not necessarily happy when coconuts have a strong output.

The price of fresh coconuts has increased by about 120%, while that of dried coconuts has increased by 150% compared to the same period last year. Businesses also have large export orders but are still worried about supply fluctuations because coconut prices increase every day, while there is no systematic planning and coordination in the area, Mr. Trung acknowledged.

According to Mr. Ho Trung An (a company exporting coconut-related products, with a factory in Binh Duong province), it is very difficult to have a container of only one type of coconut, businesses have to collect many types and negotiate with partners.

Talking about solutions, Mr. An said that if businesses invest in raw material areas themselves, capital will be limited, and if they join hands with farmers, businesses will worry about "breaking the deal".

Therefore, the source of fresh coconuts in Vietnam is currently unstable, and businesses do not dare to go far, go deep, and expand the market, Mr. An informed.

Thailand increases purchase of raw coconut from Vietnam

From 2023, the Thai coconut industry will apply measures to shift the crop structure. It takes 4 years to have raw coconuts, Thailand will switch to growing fresh coconuts in just over 2 years. This fresh coconut growing is to compete with Vietnam.

Due to the scarcity of raw coconuts, Thailand has increased the import of raw coconuts from Vietnam through unofficial channels. According to businesses, this makes it difficult for domestic factories to purchase and pushes up the price of raw coconuts. The increase in coconut prices makes deep processing factories face difficulties, but on the contrary, farmers benefit.

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Source: https://tuoitre.vn/gia-dua-tang-vu-vu-doanh-nghiep-xuat-khau-van-lo-20250325142725972.htm