Address: Lot A36, A37 - An Hiep IP,
Chau Thanh District, Ben Tre Province, Viet Nam
Address: 916 Pleasant Street, Suite 22, Norwood, MA 02062,
Address: 121, 24A St., Binh Tri Dong B Ward, Binh Tan District, Ho Chi Minh City, Viet Nam
Email: firstname.lastname@example.orgSend Enquiry
Despite the appointment before and spent two hours to meet the journalist at the office company in Ben Tre. However, conversation with Ms. Huynh Thi Cam Chau, Vice Director of the Luong Quoi Coconut Co., Ltd continuous interrupting
(Quote from newspaper “baomoi.com”, article “Luong Quoi Successful with Coconut”)
Ms. Huynh Thi Cam Chau - Vice Director of the Luong Quoi Coconut Co., Ltd
“Newly completed business trip so have many affairs to work, the customers are waiting quotation for new order, so cannot to refuse phone” Ms. Chau explain.
Currently, production capacity:
The going up from Crude Coconut Oil
Luong Quoi was established with small production facility, source of capital only is 10 million VND. Initially, the machinery is mainly self-improvement with a capacity of only 3,000 tons per year, The company merely to do outwwork the Crude Coconut oil for only one customer export to China. However, after some problems from the partner, Luong Quoi started the campaign and offered direct contracts to supply crude oil to companies produce vegetable oil such as Tuong An and Tan Binh …
In 2005, while thinking of a new direction because Crude Coconut Oil products are not hight profitable, A factory of Sri lanKa company specializes in produce Desiccated Coconut invested in Ben Tre. Luong Quoi recognized the great opportunity escape from to do outwork Desiccated Coconut when the product is more profitable than Crude Coconut Oil about 3% And the export market is much bigger.
Start on investment to build factories Thanh Vinh 1 concentrate production of desiccated coconut. At the beginning, the profit from Crude coconut oil was used to invest in Desiccated Coconut. One, two clients still export companies in the country, but over time, international Companies have begun to divert and ask company to directly export desiccated coconuts for them.
In 2008, the first customer was Omansour in the Middle East with orders of nearly 600 tonnes of desiccated coconut. Good wine needs no bush. Luong Quoi creates a great attraction by the prestige and stable quality of products.
Good news continues, many customers from Europe, America, Japan, Russia ... also came to find Luong Quoi, partly because of the prestige and partly because of cheap, Ms. Chau shared. Also in 2008, desiccated coconut became the key product of Luong Quoi, creating a rapid development for the company.
Pinnacle in 2009, Luong Quoi's export output reached 9,000 tons per year for desiccated coconut, while Virgin coconut oil only reached 100 tons per year. Expanding production to capture the market, the company boldly invest heavily in machinery, partly to increase quality, partly to boost output, from the original 5,000 tons / year to about 12,000 tons / year in 2013.
Always initiative, in 2010, Luong Quoi is looking for more diverse sales channels such as Alibaba website, supply for Coopmart, join TV sales associate program HTV and Coopmart.
Success is inherently difficult. For manufacturing businesses such as Luong Quoi, the supply of unstable raw materials is always a difficult problem. In Ben Tre, coconuts are grown by each household so the output is small with only 2-3 hecta for each household. The company must collect through the wholesale traders. But the biggest pressure is the time Chinese traders come to buy coconut with big quantity, pushing up prices, Luong Quoi was stopped production due to not being able to buy coconut material. If the raw materials are purchased high, the export price will not be competitive with the coconut strength countries such as Indonesia, Thailand, Philippines, Srilanka ..., because coconut raw materials account for 80% of Desiccated Coconut production costs.
The input of the main product desiccated coconut is not stable. The output is also quite uncertain with only 30% of traditional customers, the rest is the number of guests varied by year. Fierce, there are customers who are close to Luong Quoi, but they are still change the partner if the offer price is different (stage in 2010-2012 Luong Quoi price is 20% higher than other countries).
Nearest is in 2013, production capacity is only 40% and revenue is reduced by 50% over the previous year. The story has the order but can not buy raw materials, or when have the raw materials but customers leave, this problem often happens. Luong Quoi continues to seek out his direction.
In 2011, a client in Taiwan suggested canned coconut water and canned coconut milk with higher value more than desiccated coconut. If one ton of desiccated coconut with price is $ 2,300, the price of new products up to $ 5,000. Luong Quoi continue research and thanks support and processing line of Taiwanese technical
Still bring profit previous to invest after, Profits from desiccated coconut products continue to be poured into invest for new products lines. The company leased an additional 3 hectares of land, built Thanh Vinh 2 factory specializing in producing new products such as coconut water canned, canned coconut milk, Virgin coconut oil and refined coconut oil. Only one year later, new products have started shipping.
With the support of customers, new products of Luong Quoi outreach more difficult markets such as Canada, Japan, Korea ... Average each year the export turnover reaches $ 20 million with the export market divided clearly. Specifically, Crude coconut oil or Desiccated Coconut is mainly exported through markets Middle East, Africa, Russia ...; coconut milk, coconut oil ... with European market, Japan, Korea, Canada is favorite. Concerns about the unstable price of raw materials is also reduced because of high profit this product, Luong Quoi also strongly signed orders before to 6-7 months compared 2 months for desiccated coconut.
The domestic market is still new with only 400 million VND in sales while the export turnover is about 18 million USD in the first nine months of 2014. With refined coconut oil, if the certificate is coming soon so then productivity will increase 2-3 times more, Ms. Chau shared. And canned coconut milk is gradually becoming the key product to profit for Luong Quoi, 40% of total revenue in the first nine months.