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Coconut price increase: Farmers happy, businesses worried

Recently , in the Mekong Delta ( Delta ) , many Chinese merchants to collect the purchase price of coconut palm which rose sharply .

This makes coconut farmers excited about increasing profits , while businesses are forced to divert the conversation to find new markets to compete and survive .

Price increase, farmers greater rate

In recent days , the price of raw coconuts in Tien Giang , Ben Tre continuous increase , beyond the highest price since early this year . Mr. Nguyen Van Be - traders buy coconuts at An Thanh Commune , Mo Cay Nam district , Ben Tre , said the raw coconut type 1 (weight 0,9 kg / fruit peeling up) was collected by Chinese traders collected for 95000-100000 copper / ten 12 left ; type 2 ( weighing 0.7 to less than 0.9 kg / fruit peel ) is priced at 85000-90000 copper / 12 dozen left . This price increase 10000-15000 copper / 12 dozen left over early last May and this is the highest price since early this year .

For copra processing materials used desiccated coconut exports , Tran Van Duc - General Director of JSC Ben Tre Import Export ( Betrimex ) , said that he bought the business for $ 14,500 / kg , up by 1000-1500 dong / kg compared with prices in January 5.2013 .

According to Nguyen Truong Thinh - Business Head Co. Luong Quoi Coconut Processing ( Ben Tre ) , have 2 causes drag coconut prices rose sharply as the day 's first over - current phase ( from now till end of month 11.2013 ) coconut is on the " hook " ( off season ) to reduce power output , the second is due to Chinese traders buying push , pull prices higher .

" Coconut higher price due to many factors , partly because Chinese traders collected , partly for domestic consumption plus coconut production this year at , which in turn increases the price , now missing ingredients export serious " - Mr. Tran Van Duc analysis .

Coconut rising raw material prices , farmers are excited by increased profits . According to calculations by coconut farmers in the Mekong Delta , is a dozen coconuts sold to traders after deducting investment expenses such as fertilizer , medicine , child labor ... she was at least 70 % interest . "For example , the price of 100,000 VND / dozen 12 left (for coconut type 1 ) as now , we are at least 70,000 Interest " - Mr. Nguyen Van Quynh in Hoa Dinh commune , Cho Gao District , Tien Giang said .

Business navigation

In this context , in the country , forcing companies to raise the price of raw material procurement to compete with Chinese traders , while abroad , Vietnam now has to compete with Indonesia , Malaysia ... to win the export contracts . This makes the business activities in the field of production , processing and export of desiccated coconut and coconut products processing in the Mekong Delta have a different business plan , which is in addition to keep the traditional markets , many businesses have to consider the expansion, the shift to higher-end market to higher economic value .

According to Nguyen Truong Thinh , present , desiccated coconut exports to South Africa of the company at about 1000-1500 tonnes / year , earning about 1.5 to 3 million, accounting for 20 % of turnover the company's exports .

Mr. Tran Van Duc of Betrimex , said this year at the domestic coconut production , the output decline both in value and purchasing power due to the economic downturn . "To be out in the country , we have to compete to buy inputs for Chinese traders and the units operating together items , head back out to compete with Indonesia , Malaysia - the largest coconut producing country . The situation required such businesses to be more flexible in the business " - Mr. Duc said .

According to Mr.Duc, which is now adjusted and boost exports to the European market because this market is of high economic value. Achieving this goal will ensure that the two factors that can raise the purchase price of raw materials to compete with China's trade in the country, to compete with rivals such as export Indonesia, Malaysia ...

Meanwhile, Nguyen Truong Thinh (Luong Quoi Co.) said in addition to expanding exports desiccated coconut products into the South African market, this unit will continue negotiations with partners in South Africa to promote export of products of high economic value, such as canned coconut milk, coconut oil ...

According to Huỳnh Nguyễn/ Báo NTNN

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