Fruits from certified export orchards in Vietnam observe a decline in market value, with current prices ranging from approximately $1.01 to $1.21 per kilogram. This marks a decrease from earlier prices of about $1.42 to $1.62 at the season's start. Luc, a lychee farmer from Bac Giang Province's Luc Ngan District, noted a reduction in prices by a third compared to the previous year, impacting profitability significantly.
Luc states that despite maintaining high-quality lychee production on his one-hectare orchard, breaking even may be challenging unless prices recover. Production costs, inclusive of packaging, remain between approximately $0.32 to $0.48 per kilogram. In southern Vietnam, retail prices have dropped from an earlier range of about $1.01 to $1.62, now mirroring a nearly 30% decrease this month, alongside a 50% year-on-year reduction.
Giang, another producer from Hai Duong Province's Thanh Ha District, attributed the price drop to an oversupply of lychees and competition from other tropical fruits. The downturn in exports, decreasing by 26.6% during the initial four months of the year, exacerbates the situation, with major declines seen in imports from the Netherlands and France. Conversely, the U.S. and China have shown a rise in demand, ranging between 25% and 116%.
Transportation costs, inflated by tensions in the Middle East, have deterred import activities further. China's intensified lychee export efforts add additional market pressure.
The forecast for Vietnam's lychee production is approximately 250,000 tons this year, a 25% increase compared to 2022. Bac Giang Province alone is projected to produce a substantial 165,000 tons. However, the province has only managed to distribute 13,000 tons locally since the season began, with export activities showing limited growth.
To alleviate these challenges, the Bac Giang Department of Industry and Trade advocates for processing lychees into derivative products such as dried or juiced lychee to extend sales avenues. Promotional efforts have been initiated in Hanoi and Ho Chi Minh City, aiming to bolster the market presence and demand for lychees.
Source: Retail News Asia
