Coconut prices in Vietnam surged from $1.21 to $7.26 per dozen since 2022, driven by global demand for coconut-based products such as foods, cosmetics, and biofuels.
Vietnam experiences reduced output due to factors like climate change, prolonged droughts, pests, and outdated farming methods. Current agricultural practices show that only 20% of farmers sufficiently invest in crop care and pest control, resulting in inconsistent yield rates. Conversely, a significant portion of farmers allow natural tree growth.
The U.S. began importing fresh coconuts from Vietnam in 2023, with China starting earlier, followed by increased purchases from Middle Eastern countries. Concurrently, the domestic coconut supply has diminished, pushing prices higher, according to Cao Ba Dang Khoa, general secretary of the Vietnam Coconut Association.
While higher prices offer immediate benefits to farmers, processing companies face challenges in elevating product prices in competitive global markets. Similar price trends are observed in other Southeast Asian countries like Thailand, Malaysia, the Philippines, and Indonesia.
Vietnam's coconut cultivation spans over 200,000 hectares, yielding approximately two million tons annually. The country has witnessed an increase in processing facilities from eight in 2015 to 45 in 2024. Companies such as Betrimex, Luong Quoi, and Beinco are adopting modern technological innovations.
Source: VNExpress
