The fluctuations in export prices of areca nuts have just been decoded at the workshop "Potential for exporting official fruit and vegetable products to the Chinese market", organized by the Trade Promotion Agency - Ministry of Industry and Trade on the afternoon of November 12 in Hanoi.

According to Mr. Nguyen Trung Kien, Department of Asia - Africa Market (Ministry of Industry and Trade), areca nut is one of 29 types of food used to prepare oriental medicine exported to the Chinese market. Chinese traders want to import Vietnamese areca nut to make medicine because Vietnamese areca nut has high pain relieving properties and can be prepared into many products.

In addition, according to Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, Chinese people use areca nuts not only to make lozenges but also to chew betel. Currently, there are about 50-60 million Chinese people chewing betel.

In the past, Chinese people often used areca nuts grown on Hainan Island. This year, many typhoons have damaged a large amount of areca nuts on the island. Therefore, they increased the purchase price and the quantity of areca nuts imported from Vietnam.

Cau Viet export.jpg
Areca nut prices jumped to 85,000 VND/kg in October and then plummeted to 25,000 VND/kg after only about ten days. Photo: Le Duong

"However, right after domestic areca production recovered, they stopped buying our areca, so the export price of Vietnamese areca dropped sharply. Next year, whether the export price of Vietnamese areca increases or not depends on the weather," Mr. Nguyen analyzed.

A similar story happened with cabbage: Suddenly, a storm occurred, China sharply increased its import of Vietnamese cabbage. Without the storm, import demand was almost zero.

Mr. Nguyen noted that with vegetables and fruits that the Chinese can also produce, Vietnamese goods find it difficult to compete. In addition to low logistics costs, Chinese goods also have great support from the people's spirit of supporting domestic products and the Chinese government always prioritizes ensuring profits for farmers.

He cited dragon fruit as an example: Before 2022, Vietnam's dragon fruit exports to the billion-people market always reached a value of billions of dollars, but from 2022 until now, it has gradually decreased, now only about 500 million USD.

The report of the first 9 months of this year by China Customs recorded a 40% decrease in the amount of dragon fruit imported into this country compared to 2023. Vietnamese dragon fruit is facing fierce competition from Chinese dragon fruit.

“Chinese domestic fruits and vegetables are our formidable competitors,” said the General Secretary of the Vietnam Fruit and Vegetable Association, and recommended that Vietnamese businesses and farmers who want to successfully export to the billion-people market, in addition to improving product quality, the most important thing is to study China's production season.

For example, in the cold winter when dragon fruit cannot be grown much, China is willing to import large quantities of dragon fruit from Vietnam. But from May to November and December, when they can ensure domestic supply, they will reduce or stop buying.

Or, last November-December, the weather was not too cold, there were still plenty of bananas from China so they stopped importing bananas from Vietnam. Enterprises that own large banana farms in Vietnam have done careful research and did not increase production at this time so there was little damage.

"However, farmers do not seek information, just see that last year's price was good, so they plant more this year, and in the end, bananas fill the fields, prices drop, and they lose a lot," Mr. Nguyen cited lessons learned to avoid "repeating the same mistakes" in the future.

The General Secretary of the Vietnam Fruit and Vegetable Association said that durian and coconut are two products with great potential for export to the billion-people market.

In 2023, China will import 6.7 billion USD of fresh durian, 1 billion USD of frozen durian, and about 500 million USD of fresh coconut from many countries. Vietnamese durian exports to China this year are likely to reach 3.5 billion USD; coconut exports will reach about 200-300 million USD.

Oranges are cheaper than iced tea; areca nut prices 'free fall'

Oranges are cheaper than iced tea; areca nut prices 'free fall'

The price of oranges has dropped dramatically, to only 2,000 VND/kg, causing farmers to suffer heavy losses. Meanwhile, in just 2 years, durian - the most expensive fruit in Vietnam - has become a popular commodity sold in the market.
China stops buying, fresh areca nut prices plummet

China stops buying, fresh areca nut prices plummet

Coconut prices in Tien Giang province have dropped by 50% compared to last month due to prolonged storms and difficult output. Fresh areca nut prices in some provinces in the Central and Central Highlands have also plummeted due to China reducing purchases.
China buys cheap areca nuts to make candy, then sends them back to Vietnamese markets to sell for 3.3 million/kg.

China buys cheap areca nuts to make candy, then sends them back to Vietnamese markets to sell for 3.3 million/kg.

For many years, China has been buying areca nuts from Vietnamese farmers at cheap prices, sometimes even for only a few thousand VND per kilogram. This fruit is produced into areca candy, sold in Vietnamese markets for 3.3 million VND/kg.