Fruit prices hike on Chinese demand

Fruit prices hike on Chinese demand

Fruit exports at a checkpoint in Lang Son province, Vietnam, en route to You Yi Guan checkpoint, China. Convenient transport services have supported the increase in exports this year.
Fruit exports at a checkpoint in Lang Son province, Vietnam, en route to You Yi Guan checkpoint, China. Convenient transport services have supported the increase in exports this year.

Fruit prices have been consistently rising, driven by increasing demand from the Chinese market, improving transport services and falling shipping costs.

According to Wattanasak Sur-iam, director-general of the Internal Trade Department, the agency has been monitoring prices and found they are increasing, particularly for durian and mangosteen.

The prices for Grade A and B durian have risen to 190-200 baht per kilogramme, setting a new high for this season.

Mangosteens also reached a new peak at 200 baht per kg, up from the previous record of 161 baht.

The price increases for durian and mangosteens were driven by export demand, particularly from the Chinese market, he said.

More convenient transport services have supported the increase in shipments this year, as 28 large ships with numerous containers arrived, expanding export capacity.

Furthermore, freight costs decreased, resulting in reduced export costs and increased export volumes, said Mr Wattanasak.

Regarding other types of fruit, the department applied the "Omkoi model" to facilitate the purchase of agricultural products during the peak season. This model has the department coordinate with business operators to purchase fruit and agricultural products.

In six months, nearly 200,000 tonnes of agricultural products were purchased via this model, with buying expected to continue, he said.

This model is especially used for fruit from the North, such as longan and lychee, and some varieties from the South, such as longkong.

"The department is confident it will be another prosperous year for fruit farmers because the market is favourable. Although fruit production has increased by 3% to 6.75 million tonnes, we have not encountered any price issues. For example, mangoes just finished their production season and recorded consistently good prices throughout," said Mr Wattanasak.

"Other fruit, such as durian and mangosteens, also have excellent prices. We are confident the upcoming season will also have favourable prices."

Goranij Nonejuie, deputy director-general of the department, said fruit production in the East also increased.

Durian production is estimated at 782,000 tonnes, 522,000 tonnes of which were already released to the market, while mangosteens are estimated at 122,000 tonnes, with 58,500 tonnes released to the market.

Rambutan production is projected at 141,000 tonnes, with 62,100 tonnes released to the market.

The remaining produce will soon enter the market, he said.

Mr Goranij said the price of these fruits remains favourable, with the purchase price for golden pillow durians (Grades A and B) ranging from 190 to 200 baht per kg, Grade C from 140 to 150 baht per kg, and Grade D from 125 to 145 baht per kg.

After the fruit season in the East finishes, the market will shift to the South and North. The department has prepared measures to handle the situation, again applying the Omkoi model.

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