10:51, 02/08/2023
Durian purchasing and processing businesses in the province said they are all “sitting still” waiting for market prices to change before they can trade. According to them, this is the first durian season where market prices have reversed, and it needs to be taken seriously to prevent future risks.
As of the afternoon of July 31, 2023, the selling price of durian in the province still fluctuated above 90,000 VND/kg of Thai durian type A, 64,000 VND/kg of Ri6 type A... Most gardeners have not agreed to reduce the selling price, only a few areas have fallen durian, "drifting" durian for sale under 40,000 VND/kg.
High prices, traders "freeze"
Comments from some durian purchasing and processing businesses are that these prices far exceed their expectations, making it almost impossible to buy.
Although the current durian season in Dak Lak is not favorable, with many fruits falling off, this is still the peak durian season in other areas. Therefore, if they cannot purchase in the province, traders can still easily find sources of equally good quality products; growers cannot cite high prices as the reason for crop failure.
Businesses said that with export orders, traders exporting to China do not buy when the price of durian increases above 70,000 VND/kg of Thai durian grade A. Because if you add the costs that businesses spend on harvesting, transporting, making goods... on average exceeding 25,000 VND/kg, the price of durian is much higher than previous years.
All of this is creating great pressure for durian purchasing and processing businesses. Some units confirmed that they are completely “frozen” because they cannot consider what to do. If the price is high, businesses will accept the unit price and will not make a profit. But if they do not produce goods, businesses still have to bear the operating costs, wages for workers… which are not small. In the current difficult economic context, this is not a simple pressure.
More importantly, within the next 10 days, if the price of durian drops, businesses that can purchase will be overloaded with production capacity. With a large amount of goods being collected, limited labor and warehouse space, businesses certainly cannot meet the orders well. The market is at risk of a real "breakdown", and even if farmers accept to sell off durian, they will not be able to free up their gardens in time.
Mr. Vu Duc Con, Chairman of the Dak Lak Durian Association, is concerned that time is passing very quickly, the durian season has arrived. If businesses and farmers do not urgently cooperate to renegotiate the purchase and sale prices, the situation will worsen. When the "breakout" occurs, not only will farmers suffer heavy losses, but businesses will also have their production plans disrupted, lose export orders, the damage will be huge, and especially the reputation of the Dak Lak durian market will be seriously damaged.
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| It is necessary to quickly take cooperative actions to liberate durian gardens before the peak ripening season to avoid the risk of "collapse". Photo: Van Tiep |
Need to harvest quickly !
Mr. Con's view is that buyers and sellers need to hurry up with the harvest, there can be no more delay. The press and business support parties need to update, quickly convey information, clearly and accurately analyze the risks of "failure" of the durian crop this year, to farmers to change their concept of waiting. Organizations and unions should also focus on the situation, come to farmers to clearly analyze the current situation, and fight against speculators who continue to set high but "fake" purchase prices in the market.
“Thousands of tons of durian will be at risk of being dumped if farmers are still too gullible in market rumors. There is a lot of information that China is “very interested” in durian, so all orders have been purchased, traders and processing enterprises are just “holding back goods” to wait for prices to drop to increase profits. However, that is not true. Currently, all export processing enterprises are very impatient because customers refuse to receive late goods and do not accept high prices. If farmers and garden owners do not see the problem clearly, the situation will be very difficult,” said Ms. Nguyen Thi Thai Thanh, Director of Ban Me Green Farm Joint Stock Company. Ms. Thanh emphasized that due to the belief that they will sell at high prices, almost all gardens are refusing purchasing and processing enterprises for export like hers.
It is clear that with the current situation, the durian consumption market in Dak Lak is unstable. This needs to be thoroughly recognized and requires the participation and specific attention from management agencies, consulting and supporting businesses and production for farmers. It is necessary to quickly have cooperative moves to liberate durian gardens before the peak ripening time, in time to organize export orders to ensure quality, from both buyers and sellers.
In addition, according to Mr. Vu Duc Con, public opinion should pay attention, if the harvest is well organized, it will avoid the situation of "market overload" at peak times, which can easily lead to "rescue campaigns". Mr. Con believes that such an activity that seems to have community significance, should not be organized, because there will be mixing, deceiving consumers into buying poor quality durian, seriously affecting the reputation of the Central Highlands durian industry and causing losses to consumers.
This year's durian season in Dak Lak is therefore really "hot", and in the coming days, processing businesses will continue to sit and wait for prices to drop!
Nguyen Duc
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