With high prices, farmers celebrate Tet (Lunar New Year) in style.

Durian is still at the top.

In the days leading up to Tet (Lunar New Year), convoys of trucks carrying export fruits continue to stream towards the northern border gates. According to the Management Board of the Dong Dang - Lang Son Border Economic Zone (Lang Son province), on January 24th, 471 vehicles carrying export goods were cleared through customs, including 308 trucks of fruit and 163 trucks of other goods. The volume of export vehicles is approximately 20-25% higher than on normal days.

Domestically, traders are still diligently searching for durian orchards that are ready for harvest, with many wholesalers even willing to pay deposits to secure early-harvest deals. Nguyen Duy Trung, a purchasing employee at a durian export company, offered: "Our company accepts early-harvest Thai durians; we'll finalize the deal as soon as they start flowering. Early selling prices start from 65,000 VND/kg and below, with a 20-30% deposit."

Durian prices continue to reach record highs, helping farmers in the Mekong Delta have a prosperous Lunar New Year.

However, despite the attractive offers to sell early, it's difficult to sway orchard owners at this time, as the price of off-season durian is rising sharply. Ms. Nguyen Linh, a durian trader in Tien Giang province, confirmed that Grade 1 Thai durian (Monthong) purchased directly from the orchards is currently priced at 180,000 - 183,000 VND/kg, an increase of 25,000 VND/kg compared to the price at the beginning of January 2024; RI6 durian is priced at around 100,000 - 110,000 VND/kg, an increase of 15,000 - 20,000 VND/kg compared to the beginning of the month. This is the highest price since the beginning of 2024 and has reached the record level recorded during the same period last year.

Mr. Nguyen Phuoc Teo, owner of a durian orchard in Cao Lanh District ( Dong Thap Province ), shared: "Last year, the price of off-season durian was around 78,000 VND/kg. At that time, durian growers were very happy and celebrated Tet (Lunar New Year) in style. Now, traders are buying durian directly from the orchards at double the price of the same period last year. Durian growers who are harvesting now are having the most spectacular Tet ever."

Last year, the price of off-season durian was around 78,000 VND/kg, and durian growers were overjoyed and celebrated Tet (Lunar New Year) in style. Now, traders are buying durian directly from the orchards at double the price of the same period last year, making the harvesting durian growers' Tet celebration the most spectacular ever.

Mr. Nguyen Phuoc Teo (owner of a durian orchard in Dong Thap)

Speaking to a reporter from Thanh Nien newspaper, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, acknowledged: "It is true that the price of off-season durian in the Mekong Delta provinces is currently very high due to strong demand from China. This is a very positive sign, predicting another year of record-breaking export turnover."

According to Mr. Dang Phuc Nguyen, at the same time last year, the fruit and vegetable industry was just starting to recover after the Chinese market closed its borders to combat the Covid-19 pandemic. Currently, businesses have become familiar with the system, making things smoother. Chinese demand increases significantly during the period leading up to the Lunar New Year because it is the biggest festival of the year. People in China consider durian a precious gift for giving, offering, and making offerings. Currently, only durian from the Mekong Delta is harvested out of season, resulting in limited production and high prices. Furthermore, imports from Europe are also affected by the conflict in the Red Sea, preventing timely arrival at ports for the Tet holiday. Consequently, the Chinese market has increased imports from Vietnam and some Southeast Asian countries.

Limited supply, coupled with high demand from wholesalers and businesses for export, is the reason why durian prices in the Mekong Delta have reached record highs, resulting in very high profits for durian farmers. The estimated investment cost for one durian tree from the previous harvest to the current harvest is approximately 1.5 million VND/tree, equivalent to 30 million VND/hectare (1,000 ^m² ). With a yield of about 2 tons/hectare, farmers earn a profit of approximately 290 million VND/hectare for the Monthong variety and 170-180 million VND/hectare for the RI6 variety. This is a high profit margin, rarely achieved by other crops at present.

Coffee and pepper both benefit.

With prices soaring at the beginning of 2024, coffee and pepper prices are returning to their peaks, helping farmers prepare for a prosperous Lunar New Year. Currently, coffee prices are at 70,000 - 71,000 VND/kg, the highest in history.

Pepper prices have risen sharply due to high demand from the Chinese market.

Having just sold 6 tons of green coffee beans at 71 million VND per ton, Ms. NTH (from Dak Ha District, Kon Tum Province) excitedly said: "The current selling price has increased by nearly 80% compared to the same period last year. Last year, I had to find buyers or take them to dealers, but this year, businesses come directly to my house to buy them. I planned to wait until after the Lunar New Year to sell, but when I saw the unexpectedly high price, I decided to sell immediately. My family earned 426 million VND, the highest income in many years. With the money earned, I can reinvest for next year's crop and save up for a slightly bigger Lunar New Year celebration."

Similarly, Ms. THL (residing in Chu Se District, Gia Lai Province) shared her joy at this year's bumper harvest, having just sold coffee at a price of 70.8 million VND/ton. "When the harvest season began, the price of coffee was only 60,000 VND/kg, which was already very high, so everyone was scrambling to sell, even selling prematurely for fear of a price drop during the peak season. But no one expected that the price of coffee would continue to rise, contrary to the general trend of previous years. Selling late turned out to be more advantageous," Ms. L. boasted.

Not only farmers in Kon Tum and Gia Lai, but also in Dak Lak and Lam Dong, the Departments of Agriculture and Rural Development reported that this year's coffee crop, with an average selling price of 65,000 VND/kg of beans, brought local farmers an income of 180-300 million VND per hectare (depending on the age of the trees), resulting in a profit of 120-200 million VND after deducting expenses, an increase of 60-80 million VND compared to 2022.

Previously, pepper and chili farmers also enjoyed the joy of rising prices. Mr. Nguyen Tan (from Ba Ria-Vung Tau) said: "Pepper prices have been low for several years, causing discouragement among pepper growers, but this year, prices surged from the middle of the year and rose sharply to 90,000 VND/kg, before returning to the current level of 80,000 - 82,000 VND/kg. With this price, pepper growers have increased their profits by nearly 50%, and this Tet holiday will certainly be more prosperous than in previous years."

Why are businesses worried?

At the Vietnam Pepper and Spice Association (VPSA) summary conference on January 25th, Mr. Nguyen Tan Hien, Vice Chairman of VPSA, shared: "In 2023, although pepper prices increased significantly, businesses did not benefit much because 60% of pepper production was sold to China via border trade, while other markets experienced declines and intense competition. In 2024, Vietnam's pepper production will decrease even further, and inventories may fall to their lowest level in the past five years. Thus, not to mention competition from external rivals, Vietnamese businesses are already competing fiercely among themselves."

Regarding durian, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, expressed his concern: Durian yields substantial profits; however, the serious issue currently is the lack of strong cohesion and credibility within the production-consumption chain. Farmers are willing to cancel contracts and forfeit deposits if other traders offer higher prices. This will lead to the bankruptcy of many export businesses because they cannot fulfill contracts with foreign partners. Orchard owners and cooperatives need to maintain greater credibility if they want long-term development.

Source link: https://thanhnien.vn/trung-gia-nong-dan-an-tet-lon-1852401252006144.htm