Hybrid acacia trees in Nghe An province have unexpectedly dropped in price.

While visiting Chi Khe commune, Con Cuong district these days, we noticed that some acacia wood purchasing points were quite deserted. Mr. Tran Van Minh - a...A timber purchasing agent shared: "Previously, trucks carrying timber were constantly coming and going, with our facility purchasing 30-40 tons of timber daily. But since the beginning of December 2023, things have suddenly changed."glue prices have dropped.The price dropped from 1.2 million VND/ton to 950,000 to 1 million VND/ton, so many farmers are not cutting down their trees to sell because they are waiting for the price to go up.

Ms. Vi Thi Tinh from Chi Khe commune shared: "My family has 2 hectares of acacia trees that are ready for harvest. We intended to cut and sell them to earn money for Tet (Lunar New Year), but the price is too low, less than 1 million VND per ton. After deducting expenses, we'll end up losing money."

Mr. Nguyen Ngoc Lam, Director of Con Cuong Forestry Company, added: "Each month, the company purchases over 200 tons of acacia wood to process into veneer for domestic consumption. However, in the past few months, the price of acacia veneer has dropped sharply, from 3.2 million VND/ton to 2.5 million VND/ton. That price is not enough to cover production costs, so the company is only operating at a reduced capacity to retain its workers."

Mr. Lo Van Ly, Head of the Agriculture and Rural Development Department of Con Cuong District, added: In 2023, the price of raw acacia wood was unstable, fluctuating erratically, causing anxiety among acacia growers. Currently, acacia purchasing points in the district are buying in small quantities, and some points have even temporarily stopped purchasing due to unsold stock.

The current difficulty is that if the raw acacia wood cannot be sold, the local people will not have money to cover expenses during the Lunar New Year holiday. Furthermore, the temporary suspension of acacia harvesting in some areas has led to negative consequences such as unemployment for many acacia cutters and loaders, and the transportation system for acacia wood is also idle.

Currently, many acacia wood processing facilities in the province are operating at a reduced capacity. For example, at the acacia wood processing facility in Tan Thanh commune, Yen Thanh district, all production lines are temporarily shut down. The owner shared: "Our unit mainly produces glued laminated wood panels for the domestic market; previously, the price was 10 million VND/m²."³, now reduced to only 7 million VND/m²³The price is low, but it's difficult to sell, so the company still has over 2,100 m² in inventory.³The company specializes in laminated wood products; notably, while it previously employed over 50 workers, it now only manages to retain 20.

Currently, Song Hieu Forestry and Agriculture One-Member Limited Liability Company also has nearly 1000 m³ in inventory.³ The company's products, made from laminated wood, are worth over 10 billion VND. A company representative stated that these items have traditionally been exported primarily to the US and Binh Duong province. However, sales have been very difficult in recent months, forcing the company to find smaller orders to sell domestically and maintain the employment of over 100 workers.

According to some experts, the reason for the recent volatility in acacia wood prices is that the global market is shifting towards higher product quality. Specifically, businesses prioritize the consumption of mature timber forests with FSC certification (sustainable forest certification). Meanwhile, the majority of acacia plantations in the province consist of small-sized forests, mostly harvested from immature trees that do not meet the quality standards for processing.

To gradually overcome difficulties, Con Cuong district is coordinating with relevant departments, agencies, and businesses to develop over 2,500 hectares of FSC-certified (sustainable forest certification) forests in six communes: Bong Khe, Chi Khe, Don Phuc, Thach Ngan, Mau Duc, and Chau Khe. It is hoped that these FSC-certified forests will have guaranteed product purchases by businesses, so that farmers will not have to worry about fluctuating acacia prices or price manipulation by traders.

According to a report by the Provincial Forest Protection Department, from 2022 to the present, Nghe An province has 26,184 hectares of forest certified under the FSC standard out of a total of 170,000 hectares of raw material forest. In the long term, Nghe An needs to direct localities and relevant sectors to accelerate progress and resolve difficulties and obstacles in the process of granting sustainable forest certification. FSC certification will bring benefits such as increased economic value, especially through contracts with businesses to purchase products at stable prices.