China’s demand slump sends Vietnam's areca nut prices spiraling

Published 2024년 11월 1일

Tridge summary

Areca nut prices in Vietnam have dropped significantly due to a decrease in orders from Chinese buyers, falling from 90,000 VND to 25,000 VND per kilogram within two weeks. This price fluctuation has affected farmers in the central provinces, with some experiencing losses. However, large-scale growers have profited from the high prices earlier in the season. The price drop is attributed to China's selective buying and potential saturation of its supply needs. Despite the unpredictable demand and challenges in exporting to China, areca nut cultivation remains profitable compared to other crops due to its low maintenance requirements.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After months of record highs, areca nut prices have plummeted as Chinese buyers reduce orders, impacting farmers across Vietnam’s central provinces. Within just two weeks, the price of fresh areca nuts has plunged from 90,000 VND (nearly $4) per kilogram to 25,000 VND ($1), primarily due to decreased purchasing from China. After a period of record highs, the price of fresh areca nuts in Quang Nam and Quang Ngai has nosedived. In these regions, local traders typically visit small farms to buy the nuts directly, then resell them to agents or drying facilities for export to China. Mr. Nguyen Van Nghia, a resident of Tam Xuan Commune, Nui Thanh District, Quang Nam Province, explained that prices surged for six consecutive months, at one point exceeding 100,000 VND per kilogram at the processing plants, driven by China’s strong demand. However, two weeks ago, prices sharply declined. Local collection points have seen erratic pricing, with some temporarily closing, causing small traders ...

Source: WTOCenter