Overpriced durians caused heavy losses for exporting businesses

Durian prices in Dak Lak province are gradually dropping from its peak of 90,000 to 95,000 VND per kilogram. The current price of on-field durian is approximately 75,000 VND per kilogram.

According to a durian trader in Krong Pac district, traders fixed the price for on-field durian at over 90,000 VND per kilogram at the beginning of the season. Subsequently, a batch of durian has been harvested. However, due to the falling durian prices on the market, traders can only offer to buy at 70,000 to 75,000 VND per kilogram.

“Durian is currently in its main season so the daily output is relatively high. This causes a decline of prices compared to the beginning of the season. In addition, the consumption of this fruit has also decreased compared to the beginning of the season. These factors caused purchasing businesses to harvest in moderation according to orders, despite requests from the farms", the trader added.

According to Mr. Lam Nhat Dan, General Director of Van Hoa Investment and Development Company Limited, the company has committed to supply roughly 20,000 tons of durian to Chinese partners for this year's crop in Dak Lak. However, the extremely high prices have caused some of the importing businesses to cancel or reduce their orders.

“Van Hoa Group was forced to compensate for losses after each export shipment in order to maintain commitment and protect the company's credibility. As a result, our efforts to maintain commitments with partners are greatly affected by price fluctuations. Businesses risk not being able to sell products to farmers in the future", Mr. Dan emphasized.

Mr. Dan expects the local government and the Dak Lak Durian Association to organize information dissemination to help farmers understand the true value of durian.

He underscored, "When farmers comprehend the true worth of durian fruit, it is only then that price stabilization can be achieved, benefiting both enterprises and agricultural producers. In this manner, the durian industry can foster sustainable, long-term growth."

Meanwhile, Mr. Vu Ngoc Huy, the Deputy General Director of Dung Thai Son Import-Export Trading Company, conveyed that owing to the surging prices of durian fruit, businesses are presently operating at a mere 40% of their production capacity.

According to Mr. Huy, the current cost of raw materials in Vietnam surpasses the procurement prices witnessed in Chinese markets. Consequently, Vietnamese businesses are grappling with operational challenges, and some have been compelled to cease their operations.

"The elevated cost of raw materials translates into financial losses for exporting businesses engaged in export activities. An estimated 50% of businesses in Dak Lak province have shuttered their operations and remain non-functional", Mr. Huy disclosed.