Across Vietnam, American cherries have emerged as a surprising star on the supermarket scene, captivating shoppers with their enticing prices. Currently, retailers are offering these sought-after fruits for around VND299,000 per kilogram, with certain major chains slashing prices to an astonishing VND189,000—less than half of last year’s rates.
This year marks a strategic shift for online retailers and supermarkets embracing a substantial influx of cherries from the U.S., departing from their previous reliance on Chilean imports. WinCommerce, the operator behind the WinMart chain, is promoting the fruit at VND299,000 per kilogram from July 8 to July 23—a dip of VND160,000 from its earlier pricing.
Meanwhile, MM Mega Market reports a price of VND189,000, achieving remarkable demand spurred by a whopping 140% increase in cherry purchases compared to last year. The Vietnam Fruit and Vegetable Association notes that cherry imports have surged, making it one of the fastest-growing imports in 2023, with an impressive year-on-year growth of 43%.
As import tariffs on U.S. cherries decline, the market is poised for even more competitive pricing. The U.S. Department of Agriculture highlights a favorable shift in conditions, revealing an 8% increase in sweet cherry production from 2024, reaching an estimated 383,000 tons.
However, the U.S. must navigate a challenging landscape as exports to China, once a major market, are stifled by a formidable 58% import tariff. While China has temporarily suspended additional tariffs, the baseline tax rate still leaves American cherries trailing behind Chilean competitors, who benefit from preferential trade agreements.
On a positive note, Vietnam is actively negotiating with the U.S. for a zero-tariff regime on American goods, which could revitalize market access. In light of recent tariffs imposed by China, U.S. cherry exporters have turned their focus toward new markets, including Vietnam, South Korea, and Japan, with the wholesale price in the U.S. dropping by 10-15% during June and July compared to last year.
Questions & Answers
What factors have contributed to the rising demand for cherries in Vietnam?
Cost reductions, strategic imports from the U.S., and targeted promotions at retail chains have all played roles in increasing cherry demand by 140% from last year.
What challenges do U.S. cherry exporters face in the Chinese market?
U.S. cherry exporters contend with a steep 58% import tariff imposed by China, which has caused them to seek opportunities in alternative markets such as Vietnam, South Korea, and Japan.
How are local stakeholders responding to the decline in U.S. cherry exports to China?
Local stakeholders are adjusting by leveraging negotiations with the U.S. government to eliminate import tariffs, aiming to enhance the accessibility of U.S. fruits in the Vietnamese market.
