Coconut export forecast to hit US$1 billion this year
The Vietnam Coconut Association has forecast that coconut exports will hit US$1 billion this year, driven by the signing of a protocol for official export of fresh coconuts to China.
Earlier this month, Vietnam and China signed three protocols on the official export of frozen durian, fresh coconuts and crocodile to China, which are expected to significantly boost exports of these farm products.
China’s opening the door for fresh coconut will bring significant opportunities for Vietnam’s coconut growers. With a population of 1.4 billion, China is a huge consumption market, while its domestic coconut supply only meets around 10% of the demand.
Nguyen Huu Tai, a farmer with one hectare of coconut trees in Ben Tre province, said that this is good news for coconut growers, as opening up the Chinese market will develop a stable consumption market for coconuts and avoid falling prices.
The Vietnam Fruit and Vegetable Association expects the export of fresh coconut to increase by around US$200-300 million by the end of the year and continue to grow significantly in the near future.
Vietnam is currently the seventh largest coconut producer in the world, with a total growing area of 188,00ha and an output of around two million tonnes per year, mainly in the Mekong Delta region.
Prepare for the long run
While the news is cheering coconut growers, preparations in terms of quality standardisation are needed for sustainable export to China.
Nguyen Quoc Manh, Deputy Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, said that the linkage in coconut production remains weak due to scattered plantings.
Scattered plantations make it difficult to standardise and ensure quality, Manh said, adding that it will take time for the industry to do so.
More investments are also needed in developing the infrastructure for harvesting, collecting, processing and preserving coconuts.
“It is pressing to develop coconut growing areas which meet quality requirements for exports to stringent markets such as the US and China,” Manh said.
Developing growing areas which meet stringent quality requirements could also help the coconut industry to expand to more markets, Tran Van Duc, Chairman of the Ben Tre Coconut Investment Company said.
Deputy Minister of Agriculture and Rural Development Hoang Trung said greater attention must be paid to the management of growing areas and packaging facilities granted with codes for export to ensure compliance with the requirements of the import markets.
The ministry will continue to work with the Chinese side to facilitate the implementation of the protocol as well as provide supports to Vietnamese farmers to take advantage from this opportunity for coconut export expansion.
Fresh coconut exports reached around US$800 million in 2022-23, mainly to China, Thailand, the US and the EU.
