Record Prices for Coconuts as Supply Dwindles

Major fruit exporter Vina T&T is now paying up to VND220,000 (US$8.47) for a dozen coconuts at the farm gate, marking the highest prices ever recorded. Industry insiders reveal that coconut prices have more than doubled compared to the same period last year, with traders facing significant challenges in securing supply.

Global Impact on Coconut Exporting Nations

A similar alarming trend is observed in Sri Lanka, the Philippines, and Thailand, all of which are large exporters of coconuts. Prices in these countries have surged by 50-100% year-on-year. In Thailand, coconuts now retail for $2.9 per kilogram, while in the Philippines, prices have escalated to $4.28.

A vendor prepares coconuts for sale at a roadside stall in Hanoi on July 1, 2022. Photo by AFP

Weather and Pest Outages Exacerbate Supply Issues

Prolonged extreme weather conditions, including droughts caused by El Nino and heavy rains from La Nina, have severely disrupted supply chains in key coconut-growing regions. Additionally, pest outbreaks have further diminished yields, compounding the challenges faced by producers.

Vietnamese Coconuts Gain Competitive Edge

Amidst the crisis, Vietnamese coconuts are emerging as a preferred choice due to their competitive pricing and reliable quality. The country has reported strong growth in fresh coconut exports, particularly to the U.S. and China, with exports to the U.S. surging 11-fold since August 2023.

Future Prospects and Market Expansion

With the U.S. and China leading as top markets, Vietnamese coconut exports are poised for a record-breaking year. Experts predict fresh coconut exports could reach $500 million, driven by increasing demand and favorable trade agreements.