Durian is “price blown” so high, businesses do not dare to buy
8 August 2023
Durian export in the first 7 months of this year earned $ 1.1 billion, leading to high durian prices in many growing areas, coal businesses did not dare to buy.
Information from the Vietnam Fruit and Vegetable Association, by the end of July 2023, our country has earned about 1.1 billion USD from durian export. This fruit officially entered the “billion-dollar export club” of the agricultural industry.
Worth mentioning, dragon fruit has been ranked first in the top 10 export fruits of our country for 10 consecutive years. Now, with a turnover of 1.1 billion USD, durian is far ahead of dragon fruit to rise to the top position.
Exciting exports, durian prices in the growing areas skyrocketed. The report on production and price movements of some agricultural products of the Ministry of Agriculture and Rural Development showed that, in July, the price of Ri6 durian increased by 7,400 VND/kg, to 80,000 VND/kg. The reason is that some growing areas in the southern region have entered the end of the crop season, and the supply is scarce.
In the Central Highlands, durian entering the harvest season has also increased in price.
Talking to reporters, Ms. Thanh Thao, a gardener who grows and buys durian for export in Dak Lak, admitted that the price of durian at this time has nearly doubled compared to the same period last year.
Currently, Thai durian prices at the garden are 70,000-85,000 VND/kg, and Ri6 durian prices range from 50,000-64,000 VND/kg. Her garden has 600 trees for this harvest, and the output is estimated at 80 tons.
“In this case, I closed an order to export 200 containers of durian to a Chinese partner,” she revealed. She deposited to buy about 1,000 tons of durian from gardeners in the Dak Lak area.
However, she did not fix a hard price with her Chinese partner but applied a market price. Therefore, on this occasion, the high price of durian purchased at the garden does not affect the collection and export activities much.
However, Ms. Ngo Tuong Vy, General Director of Chanh Thu Import-Export Co., Ltd., said that the price of durian at the garden price at over 80,000 VND/kg, “enterprises don’t dare to buy”.
According to Ms. Vy, the enterprise price was previously fixed with people from 60,000-65,000 VND/kg. At this price, durian farmers have made a high profit.
But now there is a phenomenon of “price blowing” durian, farmers see the high price immediately cancel the deposit, and do not comply with the previous association principle, making it difficult for businesses to buy durian to pay for export orders.
Mr. Vu Duc Con – Chairman of the Dak Lak Durian Association – said that in recent weeks, many enterprises in Dak Lak have negotiated official orders to export durian to the Chinese market with their partners.
The focal point in China only accepts signing a contract to buy durian at a price not exceeding 90,000-100,000 VND/kg depending on the type. Comparing this signed price with the selling price of durian at farmers’ gardens, it is clear that the implementation of export contracts is not feasible, Mr. Con emphasized.
If farmers and businesses fail to reach an agreement on prices, both sides will suffer losses. Because, farmers could not sell durian, leading to ripe goods that easily “collapsed”; and enterprises that cannot buy and pay for export orders will have to compensate their partners for contracts, affecting their reputation.
According to him, the price conflict of agricultural products is not a new story, and the risk of recurrence with durian fruit. This situation should be seriously warned by the management, business community, and farmers.
There should be a connection between the growing area and the exporting enterprise. Both farmers and businesses must adhere to the principle of linking to create a stable source of goods for export, to harmonize the interests of the parties.
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