King orange prices hit new low as demand slumps

King orange prices have sunk to VND2,000-4,000 (US$0.08-0.16) per kilogram at the farm gate, half it’s previous lowest reached in June, but still, not many merchants are buying the fruit.

Oanh, who owns an orchard in southern Dong Nai Province, says she recently harvested three tonnes of oranges but could not sell them.

Since they had already ripened, she had to lower her price to VND2,000-3,000 a kilogram to try and sell them before they rotted, resulting in a marginal loss.

Similarly, Thanh’s orange orchard in southern Vinh Long Province, too, made a small loss.

“My family will not have enough money for the next crop,” he sighs.

At traditional markets and on online stores in HCMC, king orange prices are at an all-time low. Merchants are selling it at VND8,000 or even cheaper, at VND7,000, when bought in bulk.

But the low prices have not helped improve demand.

Loan, who runs a fruit store on Pham Van Chieu Street, HCMC, says sales are 30% down.

Many merchants say the orange also has to compete with better alternatives like the Vinh variety, whose harvest is 10-15% more than last year, and other cheap fruits imported from China.

“In the last three days I have only sold a few dozen kilograms of king oranges. So I have stopped buying them and switched to tangerine and Vinh orange, both of which are more in demand,” Loan says.