Rain-Soaked Dragon Fruit Yields Spike Prices Amid Diminished Supply
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Extended periods of rainfall have negatively impacted dragon fruit production, resulting in a doubling of farm-gate prices since May to VND15,000 (US$0.57) per kilogram. The price of the red-fleshed variety has seen an increase to VND20,000 in the Central Highlands province of Lam Dong, the current harvesting location for this fruit.
Impact on Farmers and Retailers
Back in May, farmers were selling at a loss, but they now report profits of VND3,000-4,000 per kilogram. Retail prices have followed a similar trend, doubling since May. The standard dragon fruit is now retailing at VND25,000 per kilogram while the red-fleshed variety is priced at VND40,000.
One trader in Lam Dong province, Xuan, mentioned that yields have decreased 10% compared to the previous year due to heavy rains, although demand remains steady. Meanwhile, Canh, the president of the Binh Thuan Dragon Fruit Association in Lam Dong, reported that output has been on the decline in recent years as many farmers have turned to different crops following a long period of low dragon fruit prices.
Impact on Export and Overall Output
Canh also stated that weather conditions have decreased the supply available for export. Customs data indicates a 3% year-on-year fall in dragon fruit exports, amounting to $280 million in the first half of the year. Vietnam currently cultivates dragon fruit on 55,000-60,000 hectares, with an annual output of around 1.4 million tons.
Questions & Answers
What has been the impact of prolonged rainfall on dragon fruit production?
The extended rainfall has led to a decrease in the production of dragon fruit, causing farm-gate prices to double and yields to decrease by 10% compared to the previous year.
How have the changing prices affected farmers and retailers?
In May, farmers were selling at a loss but they are now seeing profits of VND3,000-4,000 per kilogram. Retail prices have also doubled since May.
What has been the impact on the export of dragon fruit?
Due to weather conditions affecting supply, there has been a 3% year-on-year decrease in dragon fruit exports in the first half of the year.