China opens its doors to purchase, areca nut prices increase

The current price of young areca nuts is fluctuating from 8,000 - 12,000 VND/kg, 3-4 times higher than in November 2022. Photo: Thanh Phuc

Considered the "areca granary" of Thanh Chuong district, the entire Thanh Nho commune has nearly 1,000 households growing areca in specialized and intercropping crops. If in 2021, areca prices "feverishly" reached 80,000-100,000 VND/kg, helping people here earn a significant income, then by mid-2022, especially from October onwards, areca prices have dropped dramatically, down to 3,000-4,000 VND/kg and are still difficult to sell.

Mr. Nguyen Van Son, a betel nut grower in Nho Son hamlet (Thanh Nho commune) said: “My family has 600 areca trees, of which 400 have produced fruit. Last year, the price of areca “hit rock bottom” so the income was not good, some were sold retail at markets, some were left for breeding. After Tet, there were 50 trees for harvest, expected to yield about 400 quintals of fruit, currently traders have placed orders at 10,000-12,000 VND/kg (depending on the type). Areca fruits are long, the seeds are dense, flexible, and young, so they are bought at a higher price.”

Traders come to the garden to buy. Photo: Thanh Phuc

As a focal point for collecting areca nuts from people in Quy Chau and Que Phong districts to import to the "brokers" in the North, Mr. Vi Van Hai (Hanh Dich commune, Que Phong district) said: "During the year, areca nuts were cheap, and the Northern focal points also stopped purchasing, so people's areca nuts had no place to sell, leaving them yellow and old on the trees. After Tet, traders bought them again at prices 4-5 times higher, however, the quantity of areca nuts from people is not much because they have focused on selling during Tet, most of the areca nuts are old and cannot be sold."

Currently, the price of areca nuts has increased, traders are buying again, but compared to 2021, the price of areca nuts is only 1/5. Photo: Thanh Phuc

Currently, traders are purchasing areca nuts in Nghe An, mainly young areca nuts, at prices ranging from 8,000-12,000 VND/kg, 4-5 times higher than in November 2022 but still only 1/5 compared to 2021.

“The price of areca nuts fluctuates because the output of areca nuts depends entirely on China. They buy them at high prices, then we buy them from the people at high prices and vice versa. We buy areca nuts by the bunch, cut the fruits, sort them, boil and dry them, then re-import them to other traders. As far as we know, they buy them to export to China as raw materials to produce cough candy, but we don’t know the truth,” said Ms. Hoang Thi Hien, owner of a drying kiln in Anh Son.

At the end of 2022, the price of areca nuts dropped, people left old areca nuts on the trees without bothering to harvest them. Photo: Thanh Phuc

Since the time after the Lunar New Year 2023 until now, the price of young areca nuts has started to increase sharply as traders have increased purchases for export to China. Young areca nuts are priced well, and areca growers are excited to have an additional source of income.

However, according to the recommendation of the Department of Crop Production, people should not rush to plant areca and expand the area massively because of the high price of areca. Because areca is not a main crop or a main agricultural product, the high price of areca is only "temporary", sudden and not according to market rules.

Areca nuts are boiled, dried and then imported to China through unofficial channels. Photo: Thanh Phuc

Furthermore, the output of areca nuts depends entirely on China, so it is very unstable and easy to be unsold. Therefore, localities also need to take part in propaganda and orientation for people, to avoid the situation where when areca prices are high, people rush to plant them, and when they are unsold, they cut them down, causing waste.