In Lam Dong Province in the Central Highlands, Luong, a farmer with 4,000 square meters, is offering her harvested fruit at VND3,000–8,000 per kilogram but yet few traders are interested.
“I need to sell at VND10,000 or more to be profitable,” she said, adding that prices have plunged by 50–70% since the beginning of this year.
In the southern province of Dong Thap, farmer Hanh is selling the fruit at VND8,000–12,000, not enough to cover costs as fertilizer and pesticide prices have risen by 25-40% this year.
She said prices need to stay above VND13,000–15,000 for her to break even. “If prices remain lower than this range, we might have to narrow our growing area in the next crop.”
Dragon fruits seen on the farm of farmer Luong in Lam Dong Province. Photo courtesy of Luong |
Dinh Van Hien, a dragon fruit trader, said the main reason for the plummeting prices is a sharp increase in supply since it is the peak harvest season in most growing areas.
With other fruits such as durian, mangosteen, lychee, and plum also being harvested, demand for dragon fruit has fallen.
Huynh Canh, chairman of the Binh Thuan Dragon Fruit Association, said the sharp drop in dragon fruit prices is mainly due to oversupply.
China’s imports have fallen sharply after it expanded the area under dragon fruit in recent years. Besides, its season runs from May to November, meaning there is intense competition with Vietnam’s produce.
Vietnam’s exports to the E.U. is facing difficulties because of tightened rules, with an inspection frequency of 30% at the border. Canh said only the highest quality fruits that meet the standards of importing countries will be able to get high prices.
Vietnam has 55,000-60,000 hectares under dragon fruit, mostly in the central and southern regions, and an annual output of around 1.4 million tonnes.
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