China increases purchases, Nghe An areca prices hit record high

The family of Mrs. 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 the main 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 Thanh Hoa Commune Farmers’ Association.

Two years ago, the price of areca nuts plummeted, from 12,000 VND/kg at the beginning of the season, to 5-7,000 VND in the middle of the season and then "hit rock bottom" at 2,000-3,000 VND/kg, but there were still no buyers. Many families left the areca nuts ripening on the tree, leaving them to fall 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 and 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 May), traders everywhere have flocked to the countryside where many areca nuts are grown to deposit money in advance, even buying the whole garden when the areca nuts have just started to bear young fruit.

“Every year, the 100-tree areca garden that is bearing fruit is sold to traders in the commune. This year, traders from Anh Son, Do Luong, and even from the North came to ask to buy. They offered 40 million and then 50 million VND to buy all 100 trees when the fruit is 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 Mr. 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 regions across 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.

Due to its dependence on the Chinese market, the price fluctuates very erratically. Areca nut prices are 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 has fluctuated according to the erratic demand of Chinese traders. Many localities have advised farmers that areca is not a popular tree, its price is unstable, and there is not much market for this fruit. Therefore, people should only plant it in intercropping or on sloping areas to prevent erosion, and plant it to take advantage of land on fences, banks, and plots. In particular, people should not be greedy for high prices and plant areca massively to follow the trend.