Coconut Prices Dive in Vietnam’s Mekong Delta

The price of dried coconuts in many Mekong Delta provinces lately has sharply plunged to only VND60,000-80,000 per dozen, about a third of last month’s level, according to the Saigon News dated November 13.  The steep decline, the report said, has left many coconut farmers struggling, especially as fertilizers, labor, and transportation costs continue to rise

Traders attributed the decline to weak domestic consumption and reduced purchases by processing enterprises due to export difficulties. Several factories reported that export orders to China, India, and the Middle East have been disrupted by higher transportation costs, hampering the export of dried coconuts and related products. In addition, previously high domestic prices prompted some companies to temporarily import dried coconuts from Indonesia and Thailand, creating an oversupply in the domestic market.

According to Mr. Van Huu Hue, Deputy Director of the Vinh Long Department of Agriculture and Environment, the province currently has nearly 120,000 hectares of coconut plantations with around 22 million trees, accounting for more than 50 percent of the country’s total area. However, small-scale, fragmented production and dependence on traders have made market access unstable and prices highly volatile. The lack of close linkages between farmers and processing enterprises has also prevented the coconut value chain from reaching its full potential.