In a notable development within the agribusiness sector, avocado prices in Vietnam have risen to approximately US$1.54 per kilogram, marking a 100% increase from last year and reaching a five-year high. This price escalation is linked to a supply shortage.
Hien, a farmer from Lam Dong, anticipates earning around US$4,100 from avocado sales this year, reflecting a 60% profit margin. Despite this, Hoang Anh, a retailer in Ho Chi Minh City, reports a 50% supply reduction compared to the previous year due to low yields.
Adverse weather conditions have significantly impacted the avocado market, limiting production. Traders like Dang Minh Tien observe that many farmers are switching to more profitable crops such as durian and coffee, further tightening supply.
In response to rising prices, retail chains like MM Mega Market are implementing quality assurance measures. The chain uses a green sticker to indicate avocados that are of high quality and free from chemical residues, addressing consumer demand for premium produce.
Agricultural authorities in Lam Dong Province report a decline in avocado cultivation area, with about 8,000 hectares currently producing around 80,000 tons annually. As farmers shift to more lucrative crops, the avocado market's future remains uncertain.
As avocado prices rise, the impact on retail dynamics and consumer behavior is becoming evident. This trend may push consumers towards alternative fruits or encourage avocado cultivation in other regions, potentially reshaping consumer trends in the fruit market. Retailers may need to adjust to these changes to effectively meet evolving consumer demands.
Source: Retail News