Coconut prices drop sharply: Link up to avoid 'bargaining'

The price of fresh coconuts in the Mekong Delta has decreased by more than 50% compared to the same period last year, showing that without sustainable links, Vietnamese coconut trees can easily "bargain in price" right at home.

In Vinh Long , traders buy fresh coconuts in bulk for 40,000 - 50,000 VND/dozen (12 fruits). Farmers with small, unattractive fruit gardens are forced by traders to lower the price to 30,000 - 35,000 VND/dozen.

Fresh coconut prices drop sharply after a year of sharp price increases. (Photo: Nguyen Lien)

This is a price reversal after fresh coconuts reached a record high last year. In August 2023, Vietnamese coconuts were exported to the US and a year later, they continued to expand to China with the signing of the Protocol, pushing the price of peeled export coconuts to 14,000 - 15,000 VND/fruit.

Link to stay strong

According to Mr. Cao Ba Dang Khoa, Vice President and General Secretary of the Vietnam Coconut Association, the current coconut price is more than 100% lower than the peak period last year, although it is still higher than the bottom in 2023 when coconuts were only 2,000 - 3,000 VND/fruit.

Meanwhile, the cost of caring for fresh coconuts per hectare is still at 8-10 million VND/year, including fertilizer, pesticides and labor.

Farmers sign contracts to have their output purchased by businesses, helping to stabilize prices and providing systematic guidance on farming techniques. (Photo: Nguyen Lien)

Mr. Phan Doan Anh Tuan (Giao Long commune, Vinh Long province) has 5.5 hectares of coconut trees, 125 of which are bearing fruit. Instead of selling to traders, Mr. Tuan signed a contract with a business and had the output guaranteed.

“ Previously, when I sold to traders, the price was unstable, but when I signed a contract with the company, I was guaranteed 75,000 VND/dozen, much higher than the current market price. The company provided technical guidance, required the use of organic fertilizer, round fruit, and sugar content, so the productivity and value were both higher, ” Mr. Tuan shared.

Exporting enterprises currently purchase 10-15% higher than the market price due to quality control, traceability and technical guidance on cultivation. However, the number of households meeting the standards is still very low.

In fact, the linkage model is helping many farmers "stay strong" in difficult times, when businesses play a role in ensuring output and techniques, while farmers comply with growing area standards.

According to the Vietnam Coconut Association, the rainy season is not the reason for the sharp drop in coconut prices because only 10% of fresh coconut production is consumed domestically, most of which is for export.

The reason why Vietnamese coconuts are easily forced to lower prices is the lack of transparency, sustainability and uniformity. Most Vietnamese coconuts do not have a planting diary; care and fertilization processes are not recorded, making it difficult to trace their origin. Some old intensive farming models pollute water and do not meet international standards. Many farmers grow different coconut varieties, causing inconsistent fruit quality, making it difficult to export.

As a result, many small coconut export processing facilities had to close after only a few months because their products were returned for not meeting standards. “ Lack of quality control is the biggest weakness that makes Vietnamese coconuts lose their competitive advantage over Thailand and Indonesia ,” said Mr. Cao Ba Dang Khoa, Vice President and General Secretary of the Vietnam Coconut Association.

Important links in the value chain

In Giao Long commune (Vinh Long), the Association of High-Quality Vietnamese Goods Enterprises, BSA Center and Vina T&T Group organized a Company Tour to introduce the model of "greening" the Vietnamese coconut value chain. From the 10-year journey of bringing Ben Tre green coconut to conquer the US market to stories of connecting farmers and digital transformation, the program brings a new perspective on sustainable companionship between businesses and farmers.

According to Ms. Nguyen Thi Hue, Assistant General Director of Vina T&T Group, the company currently cooperates with more than 500 coconut farming households, with an annual export output of 4.5 million fruits to the US, Australia, and Europe.

Fresh coconuts after being harvested in the garden will be transported immediately to the factory for processing and packaging. (Photo: Nguyen Lien)

“ Vietnamese coconuts have a sweeter taste than Thai coconuts, but to compete internationally, we must have uniform growing areas, control quality and tell the story of the Vietnamese brand ,” said Ms. Hue.

Vina T&T has invested in technology to preserve fresh coconuts for up to 90 days, with a processing capacity of 20,000 fruits/day, clearly stating the origin "Ben Tre Green Coconut - Product of Vietnam" on the packaging and putting the local cooperative brand on the exported products.

Along with fresh coconut, businesses like VFARM with the Coboté brand are developing deeply processed products from coconut oil, targeting personal care and natural cosmetics. Ms. Dinh Thi Hanh Tam - CEO & Founder of VFarm and the Coboté brand, said: " Coconut oil can create both surfactants and cell-regenerating nutrients. Understanding the chain and connecting the chain is the way to increase the value of Vietnamese coconuts ."

Many experts also recommend utilizing coconut by-products (shells, shells, wastewater) to produce biofertilizers and activated carbon; combining digital transformation in production to increase efficiency and reduce losses.

Dialogue between parties in the value chain opens up perspectives on “greening” the Vietnamese agricultural value chain. (Photo: Nguyen Lien)

According to Ms. Vu Kim Hanh, Chairwoman of the Association of High-Quality Vietnamese Goods Enterprises, the linkage model needs to be expanded into a quadrilateral connection: farmers - businesses - schools - media, to not only produce well but also tell the story of Vietnamese goods to the world.

The 100% drop in coconut prices in just one year is a clear warning about the fragility of the agricultural sector due to lack of linkage and standardization.

Mr. Cao Ba Dang Khoa affirmed: “ Coconut trees are no longer a poverty alleviation tree, but a national key tree. Farmers must change their thinking, apply biological processes, and keep transparent records, as the durian industry has done .”

Sustainable links, transparent processes, and consistent quality are the keys to helping Vietnamese coconuts no longer "bargain" in price, while maintaining their position in the international market.

If we can take advantage of this time to standardize growing areas, green transformation and tell the story of Vietnamese brands, coconut trees will not only be a source of life but also a new symbol of sustainable integrated Vietnamese agriculture.

Source: https://baolangson.vn/gia-dua-giam-sau-lien-ket-de-khong-nga-gia-5061550.html