News in Brief:
– Vietnam’s durian market in Cai Lay County is reeling from a drastic 50% drop in prices, impacting local farmers.
– Oversupply, compromised fruit quality due to adverse weather, and Chinese warnings about cadmium levels contribute to the price plunge.
Cai Lay County, a key hub for durian production in Vietnam’s Tien Giang province, is experiencing a sharp downturn in durian prices, impacting local farmers significantly.
According to a news report, wholesale prices have halved between March and April 2024. Grade A Monthong durians, renowned as “golden pillow,” are selling for 113,000 to 115,000 Vietnamese dong (about $4.45 or $4.53) per kilogram. The situation is even more dire for Grade A Kanyao durians, which are being priced between 81,000 and 86,000 dong (about $3.19 or $3.39) per kilogram.
Nguyen Van Hung, a local grower, lamented the impact of weather conditions on his half-hectare durian orchard. Despite harvesting six metric tons this season, 60% less than last year, he faces dwindling profits as prices continue to plummet.
The sudden decline is attributed to an oversupply during the off-season and compromised fruit quality due to adverse weather conditions, particularly in western provinces. Moreover, recent warnings from China regarding cadmium levels in Vietnamese durians have further dampened demand, leading to reduced orders and prices.
Government intervention and Vietnam’s growing role in global durian market
Traders anticipate further price decreases even as the peak production season approaches. However, despite the drop, durian prices still remain relatively high compared to previous years, ensuring reasonable profits for growers.
To maintain export quality and meet stringent Chinese standards, authorities advise growers to employ proper harvesting and storage techniques, emphasising the prudent use of fertilisers and pesticides.
Vietnam has emerged as a leading supplier of durians to China, surpassing Thailand in early 2024. This shift is attributed to the country’s year-round availability of the fruit and its geographical proximity to China, facilitating logistics and competitive pricing.
As Vietnam prepares for frozen durian exports to China, there is optimism for a significant increase in export value, potentially exceeding $3.5 billion this year. However, addressing quality concerns, particularly regarding heavy metal contamination, remains paramount to sustain market demand.
