What caused the price of durian to drop so much?

A survey in the area shows that the price of durian at the end of the season at growers in Gia Lai and Dak Lak is decreasing by 20,000-30,000 VND per kg compared to the beginning of the season (July).

Of which, type A durian (2.7 boxes, 2-5 kg) costs 65,000-70,000 VND per kg; type B (2.5 boxes) costs 55,000-63,000 VND, down 25-30% compared to July and about 10% compared to the same period last year.

The price of Monthong durian at the garden fluctuates between 65,000-70,000 VND per kilogram, down 25-30% compared to the beginning of the season in July.

Farmers in Buon Ho (Dak Lak) said they expected the price of durian to increase at the end of the season. However, prolonged heavy rains have reduced the quality of the fruit, causing the selling price in their garden to reach only VND70,000 per kilogram. Similarly, another farmer who owns 0.5 hectares of durian in Gia Lai also encountered difficulties when traders abandoned their deposit of VND80,000 per kilogram, forcing them to sell the crop for only VND65,000 because the fruit did not meet standards.

The price of durian at the end of the season at growers in Gia Lai and Dak Lak is decreasing by 20,000-30,000 VND per kg compared to the beginning of the season. Photo: TL

At purchasing warehouses in Dak Lak, Dong Nai and Binh Phuoc, purchasing prices have also dropped sharply. Monthong grade A in Bao Loc is priced at 82,000 VND per kg, Dak Lak goods are 90,000 VND, and bulk goods fluctuate at 30,000-40,000 VND per kg, down 10-15% compared to the beginning of the season and 5% compared to the same period last year.

According to traders, prices have dropped sharply due to heavy rains, which have reduced quality, especially in new orchards that lack technical know-how. The unripe fruit has made exports difficult, with most of it only consumed domestically.

Gardens that intercrop pepper and coffee affect the quality of durian. When pepper and coffee prices increase, many households focus on these trees and apply nutrients without control, causing the quality of durian to decrease. Some warehouses only buy durian to make ice cream and peel segments, making it difficult to export whole fruits.

According to preliminary data from the General Department of Customs, the export turnover of fruits and vegetables in September reached over 920 million USD, up 9.1% over the previous month and up 37.9% over the same period in 2023. This is an unprecedented record thanks to the durian harvest in the Central Highlands provinces. In the first 9 months of 2024, the country's export turnover of fruits and vegetables reached nearly 5.7 billion USD, up nearly 34% over the same period last year.

Of which, the 10 main export markets for Vietnamese fruits and vegetables are still China, the US, South Korea, Thailand, Japan, Taiwan, the Netherlands, Australia, the United Arab Emirates and Russia.

The Chinese market alone remains Vietnam’s number one fruit and vegetable import market. In the first 8 months, China spent about 3.1 billion USD importing fruit and vegetables from Vietnam, up 36% over the same period last year. Next is the US market, spending nearly 227 million USD importing fruit and vegetables from Vietnam, up 35% over the same period last year.

The largest contributor to Vietnam’s fruit and vegetable exports to major markets is still durian. The estimated value of durian exports in September exceeded 500 million USD – a figure recorded for the first time for this item.

Although durian exports have slowed down due to weather impacts, businesses say demand from China is picking up again thanks to festivals. Favorable weather from October onwards will help durians be delicious and of good quality. In addition, off-season production is expected to increase, boosting export turnover again.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said the decline in export volume in July and August was only short-term. From September, durian export turnover will increase sharply. This year, the durian industry could reach a turnover of nearly 3 billion USD.

Recently, the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China signed a Protocol on the export of frozen durian to China, opening up great opportunities for Vietnamese agricultural products. It is expected that frozen durian exports could reach 400-500 million USD this year.

In 2023, Vietnam will export about 500,000 tons of fresh durian, worth 2.3 billion USD, with 90% going to China. The durian growing area will reach 154,000 hectares, with an output of nearly 1.2 million tons, growing 15% per year.

According to the Dak Lak Durian Association, it is expected that by 2024, the province's durian area will reach about 34,000 - 35,000 hectares, with an output of over 300,000 tons. Currently, Dak Lak and the Central Highlands provinces are in the durian harvest season and will last until the end of October, thereby contributing greatly to the country's overall durian export turnover.

With the favorable conditions in exporting fruits and vegetables in recent months, as well as the proactive supply of goods of export enterprises, it is expected that the export of fruits and vegetables in 2024 can reach an estimated 7 billion USD.