Prices of fresh areca nuts in Vietnam hit record highs due to Chinese demand
Prices of fresh areca nuts in Vietnam have surged to record highs, primarily driven by strong demand from China.
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| People collect young areca nuts in Ben Tre province (Source: VNA) |
In provinces like Quang Ngai, Dak Lak, Tay Ninh, Tien Giang, and Kien Giang, the nuts are being sold at 80,000 - 85,000 VND (3.20 USD) per kilogram. In northern areas such as Bac Ninh and Nam Dinh, prices have reached up to 90,000 VND per kilogram due to limited supply.
Traders attribute the price increase and the sustained high levels over recent months to China’s shortage of domestic areca nut supply, leading to an uptick in imports from Vietnam.
China is a major consumer of areca nuts, with Hainan being the main production region, accounting for 90% of the country's fresh areca output, with Wanning County contributing half. However, since the 1980s, the areca nut trees there have been plagued by a yellow leaf disease, which has significantly impacted production.
By June 2024, 80% of the areca nut trees in Wanning were infected with the yellow leaf disease, causing production to plummet from 220,000 tonnes in 2014 to just 40,000 tonnes in 2024. With no cure for the disease, China has had to boost imports from other countries, with Vietnam emerging as a key supplier.
A major factor behind China’s increased purchases of Vietnamese areca nuts is the production of areca nut candy, a traditional treat. The young nuts, with unformed or very small seeds, are collected, boiled, dried, and processed into candy. The candy, known for its mildly sweet and spicy flavour, is popular during the winter for its warming properties and sore throat relief.
In addition to being used in sweets, areca nuts are also incorporated into Chinese cuisine, such as stir-fried with duck, stewed with quail, or cooked into congee for health benefits. According to 2020 statistics from The Paper, sales of areca-related products in China have been increasing by 20% annually.
The high demand from China has driven the price of areca nuts in Vietnam to surge in 2024, bringing significant income for farmers, especially in long-standing areca-growing regions. However, the heavy reliance on the Chinese market presents risks. Should demand from China decrease or the market experience volatility, areca nut prices could drop sharply, causing losses for growers.
To ensure sustainability, Vietnamese farmers need to focus on quality management, diversify export markets, and develop additional processed areca products. Expanding cooperation with other countries and enhancing value-added processing will help reduce risks and maintain stability in the areca nut industry.
(Source: VNA)
