Processed fruit, vegetable exports expected to rise by 20%

Their exports rose by 23% year-on-year to $356 million in the first four months of the year, Dang Phuc Nguyen, the association’s general secretary, said.

While exact figures are not available yet for May and June exports grew strongly in the second quarter, he added.

But data is available for the combined exports of fresh and processed fruits and vegetables, and they surged by 63% to $2.8 billion in the first half, according to the association. They had been worth $3.4 billion last year, with 30% coming from processed items.

For years Vietnam’s fresh vegetable and fruit exports have largely been to China, which accounts for a 60% share. But exports to the U.S., EU and Japan have grown rapidly.

Nguyen called it “a good sign” as fruit and vegetable processors diversify into global markets and reduce their dependence on China.

A large volume of Vietnamese canned fruit products and bottled juices with a shelf life of up to two years has gone to the U.S., Japan and Europe this year.

According to the U.S. International Trade Commission, imports of Vietnamese processed fruits and vegetables have grown by 30-45% annually in the past three years.

Exports to the EU have increased by 10-20% a year. Leading exporter Westfood shipped large volumes of processed fruits and vegetables to the world market in the first five months of this year, with exports to Europe growing by 22%, its chairwoman, Nguyen Thi Minh Nguyet, said.

She said exports to China would increase dramatically this year, while South Korea, Japan, the Netherlands, and the EU (eh?) are increasing purchases.

According to the Ministry of Agriculture and Rural Development, the country’s annual output of fruits and vegetables is more than 31 million tons, but only 4.5 million tons, or 14%, are processed.

Most processing and preservation establishments are very small and run by households, and so their products often fail to meet export quality requirements.