Vietnam's durian agribusiness sector is facing a difficult period alongside a consistent downward price trend over the past few weeks. These volatile price fluctuations are forcing traders, cooperatives, and exporters to review their purchasing strategies in order to minimize the risk of losses.
According to monitoring as of July 6, durian prices in major producing regions were recorded well below last year's achievements. Grade A Thai durian, for instance, is currently marketed in the range of 59,000 to 67,000 VND per kilogram. A similar condition has hit the Ri6 variety, which suffered a significant price correction, with Grade B priced at just 19,000 to 22,000 VND per kilogram. This decline affects not only traders' profit margins but also local farmers' incomes.
Secretary General of the Vietnam Fruit and Vegetable Association, Dang Phuc Nguyen, revealed that this phenomenon was triggered by a combination of several factors. In addition to a 20-30% increase in national harvest volume, demand in the Chinese market also tended to slow down following the Dragon Boat Festival. On the other hand, the implementation of Regulation 280 by Chinese authorities since early June, which tightens quality control on imported products, has also contributed to caution in international trade flows.
Business actors are now required to adapt to a more reactive market rhythm. Khoi Phong Farm Co., Ltd. reported a drastic drop in daily purchasing volume, from 80 tons to just 15-20 tons per day. Similarly, cooperatives admit to struggling with setting stable harvest schedules because prices can change at any time within days or even hours.
Experts project that durian price uncertainty is likely to continue through August if no balance is reached between the domestic supply surge and market consumption capacity. Currently, operational efficiency and meticulous adherence to quality standards are key for industry players to survive amidst increasingly competitive market dynamics.
