Nghe An: Acacia prices plummet, many facilities temporarily suspend purchasing.

Mr. Bui Anh's acacia purchasing point in Viet Huong village, Chau Hoi commune, Quy Chau district, still has over 150 tons of raw acacia wood in stock. Photo: Van Truong

At this time, travel along National Highway 48 towards the district.Quy ChauUpon observation, it was found that there were many deserted acacia harvesting points along both sides of the road, and no one was seen harvesting acacia trees on the hills.

Mr. Vi Tinh from Chau Binh commune, Quy Chau district, shared: "From a price of 13-14 million VND/ton for acacia trees, it has unexpectedly dropped to only 10 million VND/ton in the past few months. After deducting investment costs and labor expenses, we sometimes only break even. We know that selling acacia at this time is disadvantageous, but we have to sell it to have money to cover expenses for Tet."

Mr. Bui Anh, from Viet Huong village, Chau Hoi commune, Quy Chau district - a buyer specializing in importing acacia wood for markets in the northern provinces - said: "Acacia wood prices have dropped, and sales are difficult, so for more than a month, our facility had to temporarily stop purchasing. Now that we've resumed operations, sales are very difficult, and we currently have over 150 tons of raw acacia wood in storage. The wood gets moldy and dries out if left for too long, leading to further losses."

Mr. Luong Anh Tuan, Deputy Head of the Agriculture and Rural Development Department of Quy Chau district, said: The entire district has over 21,000 hectares of acacia plantations, with 4,000-4,500 hectares harvested and replanted annually. In January 2022, the price of acacia unexpectedly increased from 9-10 million VND/ton to 14 million VND/ton; but from October 2022, the price dropped to only 10 million VND/ton.

A timber collection point in Tay Thanh commune, Yen Thanh district, is operating at a reduced capacity. Photo: Van Truong

The current low price of acacia wood, coupled with difficulties in selling it, directly impacts the livelihoods of acacia growers. Furthermore, thousands of workers in the area depend on acacia farming for their livelihoods, such as harvesting and replanting. If acacia farming stagnates, these workers will face even greater hardship due to reduced income from their work.

Currently, many acacia wood purchasing points in Yen Thanh district are operating at a reduced capacity. At one such point in Quang Thanh commune, the owner shared: "Previously, when acacia wood prices increased, our facility purchased 150 tons per day. Now, we only purchase 30-40 tons, mainly selling to Nghi Son (Thanh Hoa province). Due to..."cheap glueTherefore, some people are not selling now and are "waiting for a better price".

According to a report from the Quang Thanh Commune People's Committee, the entire commune has over 900 hectares of timber forest, and currently, the commune still has over 200 hectares of acacia trees that have reached the age for harvesting.

Despite the low price of acacia trees, some households in Do Luong district are still cutting them down to sell in order to earn money to cover expenses during Tet (Lunar New Year). Photo: Van Truong

According to a representative from the Department of Agriculture and Rural Development of Yen Thanh district: Yen Thanh district currently has over 12,500 hectares of acacia plantations, with over 2,700 hectares harvested annually. In the long term, to ensure the sustainable development of acacia cultivation, Yen Thanh district hopes to have joint ventures with businesses to sign contracts for purchasing the product at stable prices, so that farmers can produce with peace of mind.

Some acacia wood buyers in Yen Thanh district also added: Currently, some wood chipping factories exporting wood in provinces such as Ha Tinh and Thanh Hoa have temporarily stopped production due to unsold goods, causing acacia wood purchasing to also slow down.

The acacia forest in Quy Hop district has not been harvested for sale because the price is too low. Photo: Van Truong

Mr. Nguyen Khac Hai, Head of the Forest Utilization and Development Department (Forestry Sub-Department), added: Nghe An currently has nearly 170,000 hectares of acacia forests for raw materials, with over 60,000 hectares harvested annually. The reason for the sharp drop in acacia prices is that the European market has been buying less recently (mainly for biomass power generation), not to mention that laminated wood and MDF products exported to the European market are also difficult to sell.

To minimize the volatile fluctuations in acacia prices, local people need to focus onplanting large timber forestsThe aim is to increase added value and promote sustainable development. This is because the market for large timber plantations is vast, diverse, and easily marketable, meeting the needs of processing plants, concentrated industrial zones in the province, and for export…