November 8, 2024 | 01:54 GMT +7

  • Click to copy
Thursday- 20:29, 24/08/2023

Coconut exports expected to achieve the USD 1 billion target by 2025

(VAN) With the recent market access approvals from the US and China for Vietnamese coconuts, the country's coconut exports are anticipated to reach a milestone of USD 1 billion by the beginning of 2025.
Fresh coconuts are very popular with consumers in Ho Chi Minh City, especially on hot days. Photo: Nguyen Thuy.

Fresh coconuts are very popular with consumers in Ho Chi Minh City, especially on hot days. Photo: Nguyen Thuy.

Eliminating intermediaries for greater benefits for the farmers

Mr. Luu Van Phu, the Director of the Department of Industry and Trade in Tien Giang province, highlighted that while coconuts are sold for approximately VND 3,500-4,000 per fruit at the local gardens in Tieng Giang and Ben Tre, these same coconuts are priced at around VND 20,000 per fruit in Ho Chi Minh City. He emphasized that the current situation often disadvantages farmers, as intermediaries' fees consume much of their profits.

Mr. Phi, Mr. Luu Van Phu's counterpart, expressed that as the number of intermediaries in the supply chain increases, so do the associated costs. He advocated for shortening this chain and reducing intermediary stages. He proposed a model where, for example, if a coconut's price is set at 10,000 VND, the farmer receives 6,000 VND, leaving 4,000 VND for intermediary costs. This streamlined approach would result in happier farmers and more equitable profits.

The Department of Industry and Trade in Tien Giang province oversees over 35,000 hectares of coconut cultivation, concentrated primarily in Go Cong Tay, Cho Gao, My Tho, and Tan Phu Dong. Expanding exports to markets like the US has the potential to bolster coconut prices, thereby improving farmers' incomes and encouraging them to invest in maintaining coconut orchards and preserving the country's unique coconut varieties.

Tien Giang stands out as a province with a strategic advantage in developing agricultural products capable of establishing a reputable presence in both domestic and international markets.

Mr. Huynh Quang Duc, Deputy Director of the Department of Agriculture and Rural Development in Ben Tre province, reported that the province currently boasts more than 15,000 hectares of coconut plantations. The establishment of a comprehensive supply chain has facilitated the effective servicing of both domestic and export markets. Over ten businesses from within and outside the province have registered to contribute to the expansion of coconut water production, securing the province's coconut industry's promising future.

Preliminary processing of coconut for export at Vina T&T Company.

Preliminary processing of coconut for export at Vina T&T Company.

Unleashing the value of coconut trees

Chairwoman Nguyen Thi Kim Thanh of the Vietnam Coconut Association observed a rapid growth in the coconut industry in recent years. Major enterprises like Thanh Thanh Cong, Betrimex, and Luong Quoi have invested significantly in this sector over the last decade.

With the forthcoming access to the US and Chinese markets for Vietnamese coconuts, these enterprises are scaling up their efforts. The projected increase in export turnover from the current 700 million USD to an estimated 1 billion USD by late 2024 or early 2025 attests to the industry's potential.

Coconut trees, chosen due to their resilience in the face of climate change, have become a cornerstone for farmers looking to diversify their crops. These trees can tolerate high salinity levels, endure up to three months of waterlogging, require minimal care (only two annual fertilization), and produce one chamber of fruit per month.

Viet Coconut Company manufactures products such as mirror frames, washbasins, and other products from coconut shells. Photo: Nguyen Thuy.

Viet Coconut Company manufactures products such as mirror frames, washbasins, and other products from coconut shells. Photo: Nguyen Thuy.

Chairwoman Thanh emphasized that approximately 20 large Vietnamese enterprises are exporting coconuts to 35 countries and territories around the world. Apart from their utility as a food source, coconuts offer a plethora of diverse products. Businesses affiliated with the Vietnam Coconut Association have been researching and developing new applications for coconut shells in interior decoration, contributing to the industry's growth and innovation.

As the coconut industry continues its remarkable trajectory, the potential for increased exports and product diversification is undeniable. The expansion into lucrative markets such as the US and China, along with the development of innovative coconut-based products, holds the promise of not only boosting farmers' incomes but also solidifying Vietnam's position as a key player in the global coconut market.

Vinacoco's coconut jelly factory (a member company of G.C Food). Photo: Nguyen Thuy.

Vinacoco's coconut jelly factory (a member company of G.C Food). Photo: Nguyen Thuy.

As one of the largest coconut jelly exporters today, the G.C Food Joint Stock Company (GC Food) exports every month to fastidious markets such as Japan, Korea Malaysia, Indonesia, Thailand, and the Middle East. , Central Asia, Russia about 1,000 - 1,200 tons of coconut jelly. Revenue from coconut jelly in the first 6 months of 2023, GC Food grew by about 30% compared to last year.

According to Mr. Nguyen Diep Phap, Deputy General Director of GC Food International Sales, the coconut jelly industry lags behind other coconut industries, but now and in the future, there are many opportunities for development.

"Japan and Korea have studied and shown that coconut jelly is good for the digestive system, so in the future coconut jelly can be one of the products that compete with Taiwan's pearls. On the other hand, in the domestic market, large dairy enterprises have also put coconut jelly and aloe vera in their products. Currently, GC Food supplies many raw materials of coconut jelly and aloe vera jelly to large dairy companies in Vietnam. In the next 5 years, the coconut jelly industry will go further," said Mr. Phap, adding that GC Food is aiming for organic products, so in the future, it will link with farmers to plan organic coconut planting areas improving the value of coconuts of farmers as well as improving the value of coconut products.

Vietnamese coconut imports into the United States include two forms those devoid of the outer shell and coir entirely, or alternatively, young coconuts with a minimum of 75% (three-fourths) of the external green skin removed. The Department of Animal and Plant Health Quarantine (APHIS), operating under the purview of the United States Department of Agriculture, designates shelled coconuts as non-germinating commercial entities. The edible components, including the pulp and coconut water, are suitability for human consumption. The sole phytosanitary stipulation mandates that these shipments undergo inspection solely at designated points of entry within the United States.

Author: Nguyen Thuy

Translated by Linh Linh

The contradictory picture in cassava exports

The contradictory picture in cassava exports

(VAN) The demand for cassava chips has dropped sharply this year, while the demand for cassava starch remains generally strong. This contrast is clearly reflected in the export of cassava and cassava products.

Grain and livestock markets react to election results

Grain and livestock markets react to election results

(VAN) Kevin Duling with KD Investors says grains started off lower with soybeans seeing double digit gains on the possibility of increased tariffs and a trade war with China, then bounced off the lows.

Entry into the 2,500 billion USD Halal food market: Oppportunties and challenges for ‘made-in-Thanh Hoa’ products

Entry into the 2,500 billion USD Halal food market: Oppportunties and challenges for ‘made-in-Thanh Hoa’ products

(VAN) Halal market brings numerous opportunities for enterprises and products from Vietnam thus it poses considerable challenges.

Granting forest production unit code for export

Granting forest production unit code for export

(VAN) The Vietnam Administration of Forestry (MARD) recently organized a conference for issuing and managing forest production unit code in Yen Bai province.

Despite exporting to more than 100 countries, what should Vietnam's tea industry still pay attention to?

Despite exporting to more than 100 countries, what should Vietnam's tea industry still pay attention to?

(VAN) Overall, markets are increasingly demanding higher standards for food safety, particularly in traceability, according to the Department of Quality, Processing and Market Development.

Why fertilizer producer Mosaic's stock jumped 5%

Why fertilizer producer Mosaic's stock jumped 5%

(VAN) Shares of fertilizer giant Mosaic jumped over 5% Monday, posting the top daily performance in the S&P 500.

Ghana cocoa farmers hoard beans in anticipation of price hike

Ghana cocoa farmers hoard beans in anticipation of price hike

(VAN) Cocoa farmers in the world's No.2 producer are hoarding beans in anticipation of higher prices, industry sources told, potentially squeezing supplies to a global cocoa market looking to recover from last season's disastrous harvests.

Read more