Hybrid acacia trees in Nghe An province have unexpectedly dropped in price.

Scenes from the production and processing of acacia wood at businesses in Thai Hoa and Yen Thanh towns. Clip: Van Truong

Visiting Chi Khe commune, Con Cuong district these days, we noticed that some acacia purchasing points were quite deserted. Mr. Tran Van Minh, a professional acacia buyer, shared: "Previously, trucks carrying acacia came and went busily, with our facility purchasing 30-40 tons of acacia every day. But from the beginning of December 2023 until now, the price of acacia has suddenly dropped, from 1.2 million VND/ton to 950,000 to 1 million VND/ton, so many people are not cutting down the trees to sell because they are waiting for the price to go up."

Ms. Vi Thi Tinh from Chi Khe commune shared: "My family has 2 hectares of acacia trees that are ready for harvest. We intended to cut and sell them to earn money for Tet (Lunar New Year), but the price is too low, less than 1 million VND per ton. After deducting expenses, we'll end up losing money."

Currently, most acacia purchasing points in Con Cuong district are either buying only in small quantities or have temporarily suspended purchasing. Photo: Van Truong

Mr. Nguyen Ngoc Lam, Director of Con Cuong Forestry Company, added: "Each month, the company purchases over 200 tons of acacia wood to process into veneer for domestic consumption. However, in the past few months, the price of acacia veneer has dropped sharply, from 3.2 million VND/ton to 2.5 million VND/ton. That price is not enough to cover production costs, so the company is only operating at a reduced capacity to retain its workers."

Mr. Lo Van Ly, Head of the Agriculture and Rural Development Department of Con Cuong District, added: In 2023, the price of raw acacia wood was unstable, fluctuating erratically, causing anxiety among acacia growers. Currently, acacia purchasing points in the district are buying in small quantities, and some points have even temporarily stopped purchasing due to unsold stock.

The current difficulty is that if the raw acacia wood cannot be sold, the local people will not have money to cover expenses during the Lunar New Year holiday. Furthermore, the temporary suspension of acacia harvesting in some areas has led to negative consequences such as unemployment for many acacia cutters and loaders, and the transportation system for acacia wood is also idle.

Several acacia wood processing facilities in Thai Hoa town are cluttered with unprocessed acacia wood due to difficulties in selling the goods. Photo: Van Truong

Currently, many acacia wood processing facilities in the province are operating at a reduced capacity. For example, at the acacia wood processing facility in Tan Thanh commune, Yen Thanh district, all production lines have temporarily ceased operation. The owner shared: "Our unit mainly produces glued laminated wood panels for the domestic market. Previously, the price was 10 million VND/ ^m³ , but now it has dropped to only 7 million VND/ ^m³ . Despite the low price, sales are difficult, so the unit currently has over 2,100 ^m³ of glued laminated wood panels in inventory. Furthermore, the company, which previously employed over 50 workers, now only maintains 20."

Currently, Song Hieu Forestry and Agriculture One-Member Limited Liability Company also has nearly 1000 ^m³ of laminated wood products in inventory, worth over 10 billion VND. A company representative stated that these products have traditionally been exported mainly to the US and Binh Duong province. However, in the past few months, sales have been very difficult, forcing the company to find small orders to sell domestically and maintain the employment of over 100 workers.

Song Hieu Forestry and Agriculture One-Member Limited Liability Company currently has a significant inventory of laminated wood products . Photo: Van Truong

According to some experts, the reason for the recent volatility in acacia wood prices is that the global market is shifting towards higher product quality. Specifically, businesses prioritize the consumption of mature timber forests with FSC certification (sustainable forest certification). Meanwhile, the majority of acacia plantations in the province consist of small-sized forests, mostly harvested from immature trees that do not meet the quality standards for processing.

The acacia wood processing plant of Song Hieu Forestry and Agriculture One-Member Limited Liability Company is currently operating at a reduced capacity to retain its workers. Photo: Van Truong

To gradually overcome difficulties, Con Cuong district is coordinating with relevant departments, agencies, and businesses to develop over 2,500 hectares of FSC-certified (sustainable forest certification) forests in six communes: Bong Khe, Chi Khe, Don Phuc, Thach Ngan, Mau Duc, and Chau Khe. It is hoped that these FSC-certified forests will have guaranteed product purchases by businesses, so that farmers will not have to worry about fluctuating acacia prices or price manipulation by traders.

According to a report by the Provincial Forest Protection Department, from 2022 to the present, Nghe An province has 26,184 hectares of forest certified under the FSC standard out of a total of 170,000 hectares of raw material forest. In the long term, Nghe An needs to direct localities and relevant sectors to accelerate progress and resolve difficulties and obstacles in the process of granting sustainable forest certification. FSC certification will bring benefits such as increased economic value, especially through contracts with businesses to purchase products at stable prices.

Source: https://baonghean.vn/keo-lai-o-nghe-an-bat-ngo-rot-gia-sau-post281755.html