Coconut Prices in Vietnam Skyrocket to 50 Yuan per Bunch, Major Exporting Countries Widely Experiencing Raw Material Shortage

According to reports, the recent purchase price for fresh coconuts in Vietnamese coconut plantations has reached 180,000-190,000 dong per dozen (12), approximately 49.4-52.1 yuan per dozen. Including transportation and grading costs, first-grade coconuts can retail for up to 250,000 dong per dozen.

Industry insiders state that after experiencing a downturn caused by the COVID-19 pandemic, the coconut market began to recover from 2022, with raw coconut prices entering a period of strong growth after a long-term stable phase.

The significant price increase of coconuts is considered a result of joint supply and demand factors. Global demand for coconut products (such as food, cosmetics, and biofuels) is growing. Simultaneously, Vietnam's coconut production is declining due to climate change, prolonged drought, pests, and outdated farming techniques. Currently, only about 20% of farmers invest sufficiently in coconut care, fertilization, and pest control, with other farmers mostly allowing coconut trees to grow naturally, resulting in low and unstable yields.

Vietnam Coconut Association Secretary General Cao Ba Dang Khoa indicates that extreme weather has extended coconuts' fruiting cycle, leading to reduced production. Meanwhile, raw coconut exports have significantly increased, causing increasingly tight domestic supply for processing. The United States allowed imports of fresh coconuts from Vietnam in 2023, China will begin admitting Vietnamese fresh coconuts from August 2024, and some Middle Eastern countries have been increasing coconut imports from Vietnam.

Although exports continue to expand, Vietnam's production capacity and productivity have not kept pace, resulting in fierce raw material competition. Currently, Vietnam has over 200,000 hectares of coconut plantations with an annual production of approximately 2 million tons. The number of packaging plants has increased from 8 in 2015 to 45 in 2024, with companies like Betrimex, Luong Quoi, and Beinco investing in technology.

Similar situations are not limited to Vietnam. According to the International Coconut Community (ICC), Thailand, Malaysia, Philippines, and Indonesia are also experiencing raw material shortages due to harsh climate, fertilizer scarcity, and weak supply chains. Countries like the Philippines and Indonesia have retained investor interest through effective credit support plans and supply chain improvements