Coconut prices jump to $7 a dozen

Coconut prices have jumped six-fold since 2022 to VND190,000 (US$7.26) a dozen now amid heightened global demand.

Demand for products made from coconut – including food, cosmetics and biofuels – has been growing rapidly, the Vietnam Coconut Association said in a release.

Meanwhile, output is shrinking in Vietnam due to climate change, prolonged droughts, pests, and outdated farming techniques.

A coconut tree. Photo by Pixabay/kaigraphick

Only a fifth of farmers invest adequately in crop care, fertilization and pest control, leading to low and inconsistent yields. The rest mostly let the trees grow naturally.

The U.S. allowed the import of fresh coconut from Vietnam in 2023, and China followed suit last year. Some Middle Eastern countries have been buying more coconuts from Vietnam.

All this has reduced domestic supply and pushed up prices, Cao Ba Dang Khoa, general secretary of the Vietnam Coconut Association, said.

While higher prices boost farmers’ incomes in the short term, processing companies struggle to hike prices in the global market due to intense competition.

Prices have also been increasing in Thailand, Malaysia, the Philippines, and Indonesia.

Vietnam has over 200,000 hectares under coconut, and harvests two million tons annually.

The number of processing facilities has grown from eight in 2015 to 45 in 2024, with firms like Betrimex, Luong Quoi and Beinco investing in modern technologies.