Compared to the same period in 2024, the price of raw dried coconut has increased by 40%, and compared to the first quarter of 2023, it has increased by as much as 120%, the highest ever.
In Ben Tre , the price of organically grown dried coconuts ranges from 150,000 to 160,000 VND per dozen (12 coconuts), while conventionally grown dried coconuts cost from 130,000 to 145,000 VND per dozen.
The price of fresh coconuts has also increased sharply, rising by 110% compared to the same period last year. Last year, the price of fresh coconuts at the farm was only about 5,000 VND/fruit, but now it has reached 11,000 VND/kg.
Coconut prices have risen sharply.
According to Mr. Cao Ba Dang Khoa, Vice President and General Secretary of the Vietnam Coconut Association, one of the important reasons for the sharp increase in coconut prices is that Indonesia, the world's largest coconut producer, has decided to raise the export tax on coconuts and plans to stop exporting raw coconuts in the future.
This has led to a sharp decrease in the supply of coconuts on the international market, creating opportunities for other countries like Vietnam to increase exports and drive up coconut prices.
Furthermore, increased demand from factories in Thailand and China has also driven up domestic coconut prices. These factories are rushing to buy Vietnamese coconuts to supplement their domestic production. At border crossings in Dong Thap and An Giang provinces, dozens of containers of coconuts are exported daily.
Chinese corporations' coconut processing and frozen coconut milk factories are now operating stably and expanding their production facilities. Intense competition for raw materials has driven up the price of raw coconuts, making it difficult for domestic factories to procure supplies.
Although farmers benefit from high prices, factories are unable to keep up with the purchasing demand, causing difficulties in production and processing.
Mr. Tran Van Duc, General Director of Ben Tre Coconut Investment Joint Stock Company (Beinco), shared that to meet production needs, the company will have to consume 100 tons of fresh coconut meat, equivalent to about 300,000 coconuts, every day.
With the current high price of dried coconut as a raw material, production costs have increased by almost 100%. The price of coconut meat, which was 18,000 VND/kg at the same time last year, has now risen to 35,000 VND/kg.
Meanwhile, Ms. Le Thi Be, Director of Minh Tam COCONUT Vietnam Co., Ltd., said that in order to have enough raw materials for production, the company has to actively seek supply sources from many other localities besides Ben Tre, such as Tra Vinh, Tien Giang, and Vinh Long.
However, due to scarce supply, the price of coconuts has been continuously rising, causing businesses considerable difficulties in maintaining production.
Building a coconut raw material supply chain.
To stabilize domestic coconut prices, the Vietnam Coconut Association has issued a plan to build a coconut raw material supply chain, helping 2,500 households in the Mekong Delta connect with businesses, banks, and export markets.
The pilot program in 5 provinces (Tien Giang, Ben Tre, Vinh Long, Tra Vinh, and Soc Trang) will last 6 months, focusing on procurement, deep processing, financial support, and the application of digital payments, aiming to enhance product value, limit raw material exports, and stabilize raw material supply.
After a six-month pilot program, it will be expanded to 20,000 households in the eastern, western, and central provinces, creating a solid foundation for a sustainable coconut supply chain.
The Vietnam Coconut Association, banks, and businesses will cooperate closely to increase export value, integrate Vietnam's coconut industry into the multi-million dollar value chain, and bring long-term benefits to people and businesses.
Mr. Cao Bá Đăng Khoa stated: "The program also aims to create a map of coconut raw materials in each region, so that investors know that Vietnam's coconut raw material areas are not limited to Ben Tre but extend to 25 other provinces and cities."
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