Once considered “green gold” in central Vietnam, the prices of betel nuts in Quang Ngai province have now dropped strongly after Chinese traders suddenly “changed their minds” to only buy long nuts, not round ones.
In the middle of the main harvest, farmers in Quang Ngai are nervous, as betel nut prices have declined sharply, more than 6 times compared to the same period last year. Traders from China, the main consumer market, unexpectedly “turned their back” to only buy long betel nuts and reject round ones.
The price of fresh betel nuts in Quang Ngai is now only 12,000 – 13,000 VND/kg, while at the same time last year, it was up to 70,000 – 85,000 VND/kg. In betel nut gardens now, only a few people come to pick and select “standard” betel nuts for sale.
Mr. Thong, an owner of a garden with over 300 betel nut trees in Tra Giang commune, said that no one buys round betel nuts. Buyers just choose long ones, while round betel nuts are left on the tree to ripen. Mr. Thong’s betel nut garden brought in about 130 million VND in 2024, but this year, even in the peak season, he only earned over 12 million VND.
Betel nut prices have dropped because Chinese traders suddenly ‘changed their minds.’
Quang Ngai, the heart of betel nuts in Vietnam, is highly regarded by Chinese traders for having the most beautiful and highest quality betel nuts. However, in communes like Thien Tin, Nghia Hanh, or Dinh Cuong, where there are about 750 hectares of betel nut trees, people are nervous as China suddenly “changed its mind” and stopped buying round betel nuts.
Some large garden owners are selling round betel nuts, but at a low price, only a few hundred to 3,000 VND/kg. Buyers primarily buy round betel nuts to maintain relationships and establish long-term business with these gardens.
The owner of a large betel nut drying oven in Quang Ngai shared, “We really want to buy all betel nuts for the people, but our Chinese partners don’t buy round ones. They check the goods very strictly. If there are just a few round nuts mixed in with the long ones, they cancel the order immediately.”
Mr. H, who works directly with Chinese partners, said that he has stopped buying betel nuts for over a month because the market is very unstable.
“At the beginning of the season, traders bought both round and long nuts, with the highest price being 42,000 VND/kg. However, this only lasted for half a month before the price dropped sharply and they stopped buying round betel nuts. The market is too unstable, so I have to stop,” Mr. H said.
Even those who frequently trade with Chinese merchants do not know the reason why traders stopped buying round betel nuts. They said the business already had enough, so they are limiting further imports.
“Currently, the oven owners in Quang Ngai mainly buy round betel nuts to sell to domestic markets for use in wedding trays or offerings, as China has stopped buying round betel nuts.”
In 2024, the price of betel nuts in Quang Ngai and many other provinces reached a record high of 85,000 VND/kg. But in just 10 days, the price went down to 25,000 VND/kg, and thereafter, traders only bought nice betel nuts. This year is even more fierce and faster.
As the price of betel nut depends on the Chinese market, amidst the “price storm” in 2024, the agricultural sector of Quang Ngai province has repeatedly advised people not to massively expand their cultivation area. However, many farmers still planted because they believed in the “bumper crop” cycle of the previous year.