China increases purchases, Nghe An areca nuts hit record price

The family of Ms. Nguyen Thi Huong, Thanh Hoa commune (Thanh Chuong) planted 500 areca trees, of which 250 trees have been harvested, and the remaining 250 trees are in the growing period. Since the beginning of the season, her family has sold nearly 100 kg of areca fruit, the price at that time was 52,000 - 55,000 VND/kg.

“Every year, it will start from the 15th day of the 6th lunar month to the end of the 11th lunar month, divided into 4 harvests, about 20-25 days for 1 harvest. In which, the 2nd and 3rd harvests give the highest yield.

The price at the beginning of the season was 50,000 VND/kg, but for about a month now, the price of areca nuts has increased sharply, to 55,000 VND, 60,000 VND and now 65,000 VND/kg. Compared to last year, it is 8-10 times higher," Ms. Huong shared.

Due to the hilly terrain, areca palm is a popular plant in the gardens of households in Thanh Nho, Thanh Hoa, Phong Thinh, Cat Van, Hanh Lam communes (Thanh Chuong). There are no specific statistics, but almost every household in this area grows areca palm in their gardens, with small households having 5-7 trees and large households having up to hundreds of trees.

Although the areca palm is not a major crop in these localities, it is a tree that brings a good income to the people. The areca palm crop is good, so the people are very excited.

“This year, the price of areca nuts has been high since the beginning of the season and is gradually increasing. With this price, some households earn hundreds of millions from selling areca nuts,” said Ms. Nguyen Thi Oanh, Chairwoman of the Farmers’ Association of Thanh Hoa Commune.

If 2 years ago, the price of areca nuts plummeted, from 12,000 VND/kg at the beginning of the season, in the middle of the season down to 5-7,000 VND and then "hit rock bottom" 2,000-3,000 VND/kg but still no one bought them. Many families left the areca nuts ripening on the tree, falling all over the ground.

Mr. Tran Van Hoa (Cao Son commune, Anh Son) said: “If in 2021, the price of areca nuts was at a record high, 1kg reached 90,000 VND/kg, then in 2022 and 2023, the price of areca nuts dropped dramatically. In 2022, it was only 5,000 VND/kg but could not be sold because there were no traders to buy. This year, the areca nuts had a good harvest and good prices, we growers are very excited.”

Areca nut prices have increased, so since the beginning of the season (lunar month 5), traders everywhere have flocked to the countryside where areca nuts are grown to deposit money in advance, even buying the whole garden when the areca nuts are just starting to bear young fruit.

“Every year, the areca garden with 100 fruit-bearing trees is sold to traders in the commune. This year, traders from Anh Son, Do Luong, and even the North came to buy. They offered 40 million, then 50 million VND to buy all 100 trees when the fruit was still young, but the family did not sell. Because roughly, 100 trees can yield about 2.5 tons of fruit, with the current selling price, the income is about 150 million VND,” said Nguyen Van The, a areca grower in Thanh Nho commune (Thanh Chuong).

As a trader specializing in buying areca nuts, Ms. Nguyen Thi Thuong Hoai (Khai Son commune, Anh Son) said that this year, the price of areca nuts has been high since the beginning of the season and has been increasing day by day. The strongest increase is in the long-fruited, green-skinned, dense-seeded areca nuts. Currently, the price of areca nuts in major growing areas in the country such as Quang Ngai, Quang Nam, Tien Giang... is at a record high, at times reaching up to 85,000 VND/kg.

In Nghe An alone, the price of areca nuts is at 60,000-65,000 VND/kg (depending on the type). Areca nuts are mainly purchased, processed and then imported to kilns. From there, they are steamed, dried and resold to traders for export to China, India... Every year when the demand of this market increases, the price of areca nuts increases.

Because it depends on the Chinese market, the price fluctuates very erratically. Areca nut prices are currently high, but if China stops buying, they will immediately drop. "There was a year when the price was 70,000 VND/kg, but just a few days later, it dropped to only 5,000-7,000 VND/kg," said Ms. Thuong Hoai.

For many years now, the price of areca nuts has fluctuated according to the erratic demand of Chinese traders. Many localities have advised farmers that areca nuts are not a popular crop, prices are unstable, and there is not much market for this fruit. Therefore, people should only plant them in intercropping or on steep slopes to prevent erosion, and take advantage of land on fences, embankments, and plots. In particular, people should not be greedy for high prices and massively plant areca nuts to follow the trend.