Platinum Fruit, an exporter of fresh produce, highlights four main factors contributing to the current decline in longan prices, although demand remains strong for premium Grade A and AA fruit. First, global fruit prices have fallen 15-20% year-on-year, reducing market rates overall. Second, tighter lending policies in China and stricter export financing in Thailand have limited buyers' cash flow, delaying purchases and causing produce to accumulate. Third, labour shortages, particularly the reliance on foreign workers, are delaying fresh harvests, prompting orchards to convert surplus fruit into dried longan, which sells at lower prices. Finally, exports of lower-grade fruits (Grade B and C) to countries like Cambodia, Vietnam, and Malaysia have slowed due to border restrictions, applying additional downward pressure on all price tiers, as reported by Bangkokbiznews.
Despite these challenges, markets for higher-grade longans remain robust. Platinum Fruit suggests that price adjustments and improving quality can help revive demand. They also recommend processing fresh longan by peeling and freezing, tapping into growing global interest in fruit-based beverages. The firm is coordinating with government agencies and international partners to distribute early-season harvests to markets in China, Indonesia, and India, aiming to alleviate supply gluts. Additionally, supports such as skilled harvesting labour and better orchard management, especially against weather impacts, are expected to improve future yield and quality.
Thailand's Department of Internal Trade estimates over 740,000 tonnes of longan will enter the market this season.
Source: Bangkokbiznews
