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Drought causes smaller volumes, but demand has increased
Coco Produce harvest coconuts from Ben Tre, Tien Giang located in the Mekong Delta, Vietnam. The company have QC and QA teams who work directly and closely with the farmers to control the quality from the coconut tree into the factory. They supply two types of coconut: young coconut and mature coconut, which they supply year-round.
"Southern Vietnam has a temperate climate which is divided into two main seasons: rainy season and dry season. With mature coconuts, we can export them consistently the whole year. On the other hand, with young coconuts, the volumes are higher in the rainy season than in the dry season," explains Rose who deals with export sales at Coco Produce.
"This year, the west has suffered from severe drought and salinity, making coconut fruit smaller than usual and there has been a dramatic decrease in output. Meanwhile, European demand has increased, as has demand from other destinations such as America and Asia. This has lead to an increase in coconut prices, which have doubled."
Rose quotes a farmer in Ben Tre Province: "It must be said that coconut prices fluctuate like gold prices. Businesses must have policies for growers such as commitments to purchasing during off-peak times, financial support... to maintain raw material sources."
Coco Produce Company export around 30-40 containers each month.
"Coconuts exported by our company have a genuine flavour because our growers use very little fertilizer which keeps the natural taste of the coconuts and increases shelf life, this is the specialized feature of Vietnamese coconut. With a large and modern factory system, we are committed to choosing quality coconuts and modern preservation technology to create quality coconuts to bring customers fresh products as if they were just picked from the tree."
The area planted with coconuts increases rapidly each year because the quality of coconut is being improved, and the export industry brings high value for farmers. Some farmers have changed from fruit growing to coconut cultivation because coconut farms demand less maintenance, which saves labour costs and less fertilizer use.
Coco Produce Company exports coconuts to more than 15 countries in North America, Asia, Europe, and Oceania.
"We continue to focus on our current customers. Also, we would love to bring our Vietnamese coconuts to new markets as due to the natural taste with tender flesh and fresh water; Supply from Vietnam is good and have a very affordable price due to our low labour costs."
