Tag: lychee

They are not as plentifully available as in previous years in HCMC and cost VND165,000-180,000 at premium stores and VND85,000-96,000 at large retail chains like MM Mega Market and Winmart.

Some supermarkets have run out of stock while others are selling the fruit in very limited quantities at VND120,000-135,000.

Lychee output took a nosedive this year. In Bac Giang Province’s Luc Ngan District, a major producer of the fruit, lychee farmer Nguyen Thi Hien had expected her output to decrease by 30% this year, but she said it has dropped by 60%.

She sold her last half a ton at VND80,000 per kilogram, the highest price she has got in her life.

According to the Luc Ngan People’s Committee, even buyers and processing facilities in the district have been struggling to source lychees. While farmers usually have to transport the fruit to markets, traders are buying right at the farm gate this year, it said.

Similarly, in Hai Duong Province’s Thanh Ha District, another large lychee grower, farmers have reported significantly lower harvests.

One of them, Giang, said he has only managed to harvest three tons this year, down from last year’s 11. Despite the unprecedented prices he incurred losses due to the poor harvest, he said.

Hoang Anh, a lychee merchant in the northern region, said Thanh Ha District is almost out of lychees and she is only able to procure them from Luc Ngan. The fruit is in great demand this year, both domestically and internationally, she said.

Demand from China, the biggest consumer of Vietnamese lychees, has increased since that country also had poor harvests, while southern Vietnam has consumed a lot more lychees this year, she said.

She was only able to buy enough to meet 50-70% of the orders she received.

An MM Mega Market spokesperson said the falling supply has caused prices to increase towards the end of the season unlike in previous years when they would decline.

MM signed an agreement with Bac Giang farmers at the start of the season to buy 100 tons of the fruit this year, but it now seems difficult given the poor harvest, they added.

Central Retail, which operates the GO! supermarket chain, also said it might not be able to buy 300 tons of lychee as it had previously planned

According to statistics from the Bac Giang Department of Industry and Trade, farmers in the province have harvested 67,000 tons so far this year.

Around 43,000 tons have been consumed domestically, and the rest has been exported, the department said.

China bought 23,800 tons of the remaining 24,000 tons. Japan, the U.S., the EU, Australia, Dubai, and some Southeast Asian countries also imported Vietnamese lychees.

Thanks to coordination between importer LNS International Corporation and the distributor L&V Food Supply Company in Houston, Texas, fresh lychee grown in the northern province of Bac Giang – dubbed Vietnam’s kingdom of the fruit, has been available on the shelves of many supermarkets and the largest Asian market in Houston.

Chinh Nguyen, CEO of L&V Food Supply, said her group and LNS International Corporation are working on a plan to import big shipments of Vietnamese food and fruits to the U.S. this year.

“After three shipments of fresh lychees (approximately 9 tonnes) to the U.S. in June, we plan to import frozen lychee (about 2 containers per month, equivalent to about 30 tonnes),” she said.

“If Vietnamese suppliers can ensure enough standard products, we will import an additional three shipments (80-90 tonnes) this year.”

The success demonstrates the efforts by Vietnamese ministries and agencies, including the Ministry of Industry and Trade, in trade promotion to deliver Vietnamese agricultural products to demanding markets such as the U.S. and the European Union.

According to the Ministry of Agriculture and Rural Development, among Vietnamese agro-forestry-fishery products, the U.S. has purchased cashew nuts, aquatic products, wood and fruits most.

The U.S. Department of Agriculture forecast that the US will import up to $199 billion worth of agricultural products this year, $5 billion higher than last year’s figure, which offers an opportunity for Vietnamese agro-forestry-fishery exports.

Last year, the U.S.’s fruit-vegetable import reached a record high of over $31 billion, including $19.3 billion= of fresh and frozen fruits, an increase of 10% compared to 2021. The majority of these imports came from Canada, Mexico, and some countries in Central and South America.

Apart from Vietnam, the U.S. also imported lychee from China, India and Thailand. Vietnam’s Bac Giang lychee has been favoured by local consumers for its quality.

Vietnamese Trade Counsellor in the U.S. Do Ngoc Hung pointed out that there is ample room for Vietnamese fruits in the U.S. market.

However, Vietnamese agricultural products and lychee still encounter obstacles in accessing the market due to the far geographical distance, and high irradiation and transportation costs.

The Vietnamese trade office in Houston suggested relevant associations and businesses of Vietnam and the US exchange information and work together to support export-import activities.

In particular, businesses should make long-term commitments to ensuring good coordination among exporters, importers, and distributors for large shipments, exchange market information and share responsibility and risks with partners, thus creating a healthy competitive environment, Hung said.

He also suggested intensifying product promotion to introduce Vietnamese fruits to other communities in the US apart from Asian consumers.