Dragon fruit farmers in central and southern Vietnam are faced with declining prices due to an oversupply and reduced demand for their produce. Farmers are being forced to sell their crops at prices far below their cost of production, resulting in significant losses.
Plummeting Dragon Fruit Prices
In the Central Highlands’ Lam Dong Province, a farmer named Luong finds her offer of VND3,000–8,000 per kilogram for her harvested dragon fruits met with little interest from traders. “I need to sell at VND10,000 or more to be profitable,” Luong said, noting that prices have plummeted by 50–70% since the start of the year.
Meanwhile, in the southern province of Dong Thap, farmer Hanh is struggling to cover costs as she sells her dragon fruits between VND8,000–12,000 per kilogram. This is insufficient considering the 25-40% rise in fertilizer and pesticide expenses this year. Hanh states that prices must remain above VND13,000–15,000 per kilogram for her to breakeven. “If prices remain lower than this range, we might have to reduce our cultivation area for the next harvest,” she warns.
The Causes of the Price Crash
Dinh Van Hien, a dragon fruit trader, attributes the price plummet to the sharp increase in supply, as it is currently the peak harvest season in most growing areas. This, coupled with the harvest of other fruits such as durian, mangosteen, lychee, and plum, has led to a decrease in demand for dragon fruit.
Huynh Canh, chairperson of the Binh Thuan Dragon Fruit Association, agrees that the drastic drop in dragon fruit prices is primarily due to oversupply. Additionally, he states that China’s imports have sharply decreased after the country expanded its dragon fruit cultivation area in recent years. Furthermore, with the dragon fruit season in China running from May to November, there is heightened competition with Vietnam’s produce.
There are also challenges with Vietnam’s exports to the European Union due to tightened rules, including an inspection frequency of 30% at the border. According to Canh, only the highest quality fruits meeting the import standards of the receiving countries will command high prices.
Currently, Vietnam has around 55,000-60,000 hectares dedicated to dragon fruit cultivation, primarily in the central and southern regions, with an annual output of approximately 1.4 million tonnes.
Questions & Answers
What is the main cause of the drop in dragon fruit prices in Vietnam?
The primary cause of the price drop is an oversupply of dragon fruits due to the peak harvest season and a decrease in demand.
How has the increase of cultivation in other countries affected Vietnam’s dragon fruit market?
Increased cultivation in other countries, particularly China, has led to a decrease in imports of Vietnam’s dragon fruits, contributing to the oversupply and drop in prices.
What challenges is Vietnam facing with its fruit exports to the European Union?
Vietnam is facing challenges with its fruit exports due to tightened regulations, including a higher frequency of inspections at the border. Only the highest quality fruits that meet the import standards of the receiving countries can secure high prices.
