Lam Dong avocado specialty price drops sharply

Each kilogram of 034 avocado, type two fruits per kilogram, sold at markets and sidewalks in Saigon ranges from 15,000 to 30,000 VND per kilogram, down 20% compared to last year.

A survey in Ho Chi Minh City showed that avocado 034 - a famous specialty fruit of Lam Dong - is sold a lot on Thong Nhat, Pham Van Chieu (Go Vap), Pham Van Dong (Thu Duc), Dien Bien Phu (Binh Thanh) streets with a sharp decrease in price compared to the same period last year.

Mr. Hoang, a vendor on Thong Nhat Street (Go Vap) said that every year, retailers imported 100-200 kg at a time, but now the price has been halved, so wholesalers like him often have to sell their goods on the sidewalk. He sells large-sized fruits (2 fruits per kg) for 20,000 VND per kg, and smaller fruits for 12,000 VND per kg. This price is half the wholesale price he gives to retailers.

Avocado 034 sold on the sidewalk of Le Duc Tho street (Go Vap). Photo: Hong Chau

Ms. Loan, a cart owner on Pham Van Dong Street, said the combo of 3 kg of 034 avocado costs 50,000 VND, which is the cheapest price ever for this specialty fruit. "Every day, I only sell 30-50 kg, half of last year's amount," Ms. Loan said.

Retail outlets are sluggish, and buyers are also complaining about slow consumption despite the sharp drop in avocado prices. Ms. Nguyen Thanh Mai, an agricultural trader in the Central Highlands, said that last year, each batch of goods sold to Ho Chi Minh City was 5-10 tons, but now it is only a few hundred kilograms for those in need. Domestic consumption is slow, and exports to Cambodia and Thailand have also decreased by 20% compared to the same period last year.

At the gardens, Mr. Thanh, who owns 3 hectares of 034 avocados in Lam Dong, also reported that the wholesale price of two-fruit-per-kilogram avocados has dropped sharply, to only 5,000-8,000 VND per kilogram. At this price, Mr. Thanh said, the gardeners "have almost no profit".

"In the near future, I will intercrop other trees and gradually replace avocado trees," he said.

Avocado 034 began to be grown in Lam Dong since 2009, by 2012 there were a few dozen households growing it, however this fruit is now spread throughout the Central Highlands provinces. This type of avocado was once sold for 200,000 VND per kg for the 2-fruit-per-kg variety, but in recent years the price has continuously dropped.

Explaining the reason, Ms. Nguyen Thanh Mai, an agricultural trader in the Central Highlands, said that the price of this fruit has dropped rapidly due to increasingly weak purchasing power. The quality of this year's harvest is also uneven as many gardeners are not as keen on taking care of the fruit as in previous years.

Every year, the People's Committees of the provinces come up with solutions to connect agricultural product consumption, but supply exceeds demand, so prices continuously fall. Some businesses in the area are planning to deeply process this fruit, but consumer demand is low due to the impact of the global economic recession.

According to statistics from Lam Dong province, the province currently has about 10,000 hectares of avocado, of which 034 avocado accounts for 25%. The area planted with 034 avocado in Dak Lak, Dak Nong, Kon Tum, Gia Lai has increased by tens of thousands of hectares, 7-8 times higher than 5 years ago.

Hong Chau

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