The Saigon Giai Phong newspaper reports that the exports of dragon fruit from Vietnam to China have dropped recently due to the tightening of border control and an increase in the number of dragon fruit plants in China itself.
The director general of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade said that even though Vietnamese dragon fruit can be sold to various markets, like Thailand as well as Indonesia, China remains the largest market for the dragon fruits, accounting for over 80 percent of all exports. Dragon fruit accounts for a third of the exports from Vietnam’s produce and is often worth more than $1 billion annually in export sales.
China’s domestic dragon fruit has been a major competitor for Vietnam in recent years. In September 2020, China’s dragon fruit area is estimated to be between 53,000 and 67,000 hectares, far exceeding Vietnam’s 50,000 hectares. Over time, Vietnamese dragon fruit has also lost its cost advantage in China; the fruit’s total production cost from planting to shipment to China is currently around 5 Chinese yuan ($0.77) per kilogram. The problem has been exacerbated by the fact that dragon fruit grown within China has a sweeter flavor that is preferred by Chinese consumers.
Vietnam has also had to deal with difficulties with shipping due to COVID-19. Vietnamese dragon fruit previously required two or three days to get to Guangxi province via transport, however, shipments now take about a week, generally due to the tightening of border controls and delays in customs clearance.
Also in July, China Customs uncovered a 170,000-ton Vietnamese dragon fruit smuggling operation, resulting in a drop in Vietnamese dragon fruit availability. While the price of dragon fruit in China rebounded after August, the price of Chinese-grown dragon fruit is steadily increasing as Mid-Autumn Festival and China’s National Day approach. However, large price increases aren’t expected.
China Customs statistics reveals that China has imported 281000 tons of dragon fruit from Vietnam from January through June this year, that’s a huge reduction of 23.4 per cent compared to 367,000 tons of dragon fruit imported in the initial six months in 2020. Furthermore, the value decreased by 33% year-on year. Insiders in the industry estimate that even though Vietnamese dragon fruit is still holding the majority of China’s market for dragon fruit, however, the share is expected to decrease in the next few years.
Vietnam’s exporters are responding to these challenges by reaching out to other foreign markets, including Australia, Japan, the European Union, North America, and the Middle East. Vietnamese dragon fruit is reportedly available for purchase in Australia for $4.90 per fruit, thanks to a Vietnamese commercial office in Australia organizing a Vietnamese dragon fruit week. In recent years, Vietnam has also exported dragon fruit to Japan, India, New Zealand, Chile, and Pakistan, albeit in limited quantities.
Source : guojiguoshu
