Keeping durian prices stable: Close cooperation is needed

08:31, 07/08/2023

The sharp increase in Dak Lak durian prices at the beginning of the 2023 crop has caused much concern for professional agencies, businesses and farmers. In this context, strengthening the connection between growing areas and exporting enterprises is considered the optimal solution to maintain stability for the durian industry to develop in the long term.

Farmers are both happy and worried.

Having grown durian for more than 10 years, Mr. Y Ly Knul (Jung hamlet, Ea Yong commune, Krong Pac district) has never seen prices increase as quickly and as high as they do now. Although it is not yet the main season, his family's nearly 1 hectare durian garden has many traders coming to offer prices and sign purchase contracts. Many traders come to the garden to buy Dona and Ri6 durian at an average price of 80,000 VND/kg, the highest price ever. Although excited about the high price of durian, the family has not yet decided on a price because they are worried about what the price will be when it is time to harvest.

Durian garden of a household in Ea Ngai commune (Krong Buk district). Photo: Minh Thuan

Similarly, in Ea Kenh commune (Krong Pac district), many farmers are also excited when durian prices increase sharply. Mr. Nguyen Ba Tho (Tan Trung village) said that every year the price is also high but not to this extent. “Psychologically, people are extremely excited and happy. However, farmers like us often have to face the situation of "good price, bad harvest" and vice versa. That is why I want the price to be stable and can be stable every year, the situation of fluctuating prices will make farmers live in a state of anxiety and worry", Mr. Tho confided.

Krong Buk district has 1,500 hectares of durian with an output of about 70,000 tons, mainly Ri6 and Dona durian varieties. Currently, many households are very happy when the price of durian increases. However, it will be more than a month before durian in this area is ready for harvest, so households are very hesitant and worried because the price is increasing every day, so they are not in a hurry to finalize the price with buyers.

Mr. Ta Van Chuc (village 4, Ea Ngai commune, Krong Buk district) said that his family has 4 hectares of durian that have just been harvested for the first year, with a yield of about 50 - 60 tons. The garden will be ready for harvest in 50 days, but the purchase price at the beginning of the season has increased significantly compared to many years. Currently, the family is very hesitant, so they have not yet decided on a selling price with traders but are waiting to negotiate a price with the purchasing unit.

Durian garden of a household in Ea Ngai commune (Krong Buk district). Photo: Minh Thuan

Need to tighten chain linkages

The Dak Lak Durian Association recommends: To avoid future conflicts of interest, members who are farmers and cooperatives, when signing commercial contracts, need to carefully check and evaluate the capacity of the exporting enterprise; where is the packaging facility, what is the scale of production. In particular, has the enterprise met the conditions to be assessed by Chinese Customs and exported directly? People and cooperatives should also prioritize enterprises that are qualified to pack locally.

Up to now, Vietnam has exported durian to more than 20 markets. The quality of Vietnamese durian is highly appreciated by consumers and the price is reasonable, so it is competitive with some countries such as Thailand, Malaysia, etc. In particular, China is a market with a lot of potential and increasingly prefers durian. The official export of durian to the Chinese market is a great success for the Vietnamese durian industry in general and Dak Lak province in particular. This is both an opportunity and a challenge for industries, levels, businesses and farmers. Because in order to export durian sustainably, it is necessary to build a production chain so that the steps of establishing growing areas, setting up packaging facilities, and the production process, packaging products, and controlling harmful organisms are carried out smoothly, meeting the requirements of importing countries. However, in the context of "hot" increases in durian prices, there are certain impacts on newly established chains and there is a risk of breaking them.

According to Ms. Nguyen Thi Xuan Huong, Director of Huong Cao Nguyen Agricultural Production and Service Joint Stock Company (Buon Ma Thuot City), the current situation of the durian industry, although favorable, is a challenge for businesses and farmers, especially in the production linkage model. In particular, the price of durian at this time is unstable and there are many different prices on the market, causing many households to see immediate benefits and break the production linkage with businesses. Therefore, professional agencies, authorities and businesses must join together to propagate to people to clearly understand the current situation as well as the practical benefits of participating in the linkage chain in the context of a saturated market, not a period of vibrant development as it is now.

As for Huong Cao Nguyen Company, it has now linked up with 80 households of 5 cooperatives in the areas of Cu M'gar, Ea H'leo, Krong Buk and Buon Ho town, with an area of 300 hectares, an output of 5,000 - 6,000 tons. Currently, many other businesses have come to discuss with the cooperatives, but no household has agreed to sell to the outside, because the members of the association have a high consensus on implementing a long-term, sustainable association model. That is an advantage that the enterprise has created in building and connecting the growing areas.

Officers of the Department of Agriculture and Rural Development of Krong Buk district surveyed durian gardens in the district. Photo: Minh Thuan

Ms. Nguyen Thi Minh Huong's household (member of the Buon Ho Agricultural Cooperative) said that her family has 5 sao of 10-year-old durian, with an estimated yield of 12 tons. Instead of choosing to sell at a high price like other households, she decided to sell to businesses that are associated with the cooperative. She believes that this association will help farmers sell at a stable, long-term price and still ensure profits. Because in reality, every year there is a situation where durian brokers "anchor" the garden, abandoning the stake, causing great damage to growers. When the garden is "anchored" for too long, when the harvest season is in full swing, people are forced to sell off to clear the garden at a price 15-20% lower than the market price.

According to export enterprises, in Dak Lak alone, the durian area for harvest accounts for about 40%. In the next three years, this area will double or triple; and if calculated for the next five years, the output will increase many times over the current level. Therefore, local authorities and the Dak Lak Durian Association need to sit down together and urgently come up with solutions to create a sustainable strategy. Enterprises need to cooperate with gardeners and cooperatives to share profits for sustainable development. The durian industry needs to learn from experience, select methods and unite with each other so that it will not be afraid to compete with other countries.

Mai Minh Thuy

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