Areca export

Thursday, june 29, 2017 09:53

(QNO) - June is the beginning of the areca harvest season. It is the time Le Binh Ninh (hamlet 6, Tien Canh commune, Tien Phuoc district) travels continuously between Quang Nam, Da Nang, Quang Ngai and Hunan (China) to collect, process and export areca to China. He is also planning to expand his production.

Le Bình Ninh (left) và Peng Hu under areca trees in Tien Phuoc district
Le Bình Ninh (left) và Peng Hu under areca trees in Tien Phuoc district

Start-up

Le Binh Ninh was born in 1981. He used to be a teacher at a secondary school in Tien Phuoc. One day in 2007 when he was taking a stroll around the Loc Yen ancient village in the shade of areca trees, he thought of its beauty and the preciousness of its fruit, Tien Phuoc specialty. However, the economic value of this species was very low; and the residents appeared to get little income from it. At that time, an intention flashed through his mind – buying, processing and exporting areca, helping to improve the locals’ income.

The process to success

As Ninh’s family is very wealthy, he quickly convinced his father to build a processing factory worth one billion VND. His raw material is fresh areca fruit mainly bought in the areas of Tien Phuoc district. He always pays higher than the price the others can. At the first phase of his start-up, he faced a lot of challenges from the market, inputs and outputs. However, his determination and efforts helped him overcome difficulties, gradually stabilize his market. His partners were mainly in North Vietnam at that time.

In 2010, following the export cargo trucks to China, Ninh went to Hunan province to seek markets. The opportunity came to him when he met Peng Hu, owner of a large confectionery company in Hunan. Since then, his areca products have had a stable output. About 10 tons of dried areca (equivalent to 50 tons of fresh one) exported to China in each shipment brings him about tens of millions VND of profit.

Sweet fruit of areca

At present, Ninh’s factory processes 8 tons of dried areca (equivalent to 40 tons of fresh one) a day. According to this young businessman, the problem lies in the input of fresh areca because his Chinese partners’ need is extremely big. To meet the demand for 8 tons of dried areca a day, Ninh’s factory has been equipped with 50 pans and 10 kilns.

Recently, Peng Hu has visited his factory and given him a suggestion of cooperation in producing areca sweets in Vietnam, then exporting them to China.

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