Fruit glut raises fear of another price slump

Fruit glut raises fear of another price slump

An above-average harvest of mangosteens and other fruits is predicted to reach the market from orchards this year. (Photo by Apichart Jinakul)
An above-average harvest of mangosteens and other fruits is predicted to reach the market from orchards this year. (Photo by Apichart Jinakul)

Forecasts that farmers will produce more fruit from their orchards this year are worrying agricultural officials, who hope price slumps can be averted.

The Office of Agricultural Economics has predicted that 863,258 tonnes of durian, mangosteen, rambutan and longan will be produced this year in Chanthaburi, Rayong and Trat, the three eastern provinces known as the country’s fruit hub. That’s an increase of 30% from the previous year.

The office under the Agriculture Ministry did not provide a breakdown for each of the four types of fruit.

Production of longan (lamyai) in the northern provinces, meanwhile, is forecast to increase by 4% to 703,355 tonnes.

As more fruits start entering the market, officials have started to worry about an oversupply that could push prices down sharply, similar to what happened with pineapples last year.

The Commerce Ministry has identified durian, mangosteen, rambutan and lamyai as its main concern as a glut could result in less income for growers.

The Internal Trade Department is looking to hold talks with traders, exporters, big and small store operators and even Thailand Post about measures to cope with a possible influx of the fruits.

“The Agriculture Ministry has predicted somewhat good weather conditions for fruits this year compared with the drought and the long dry spell last year,” department director-general Whichai Phochanakij said on Thursday. “We need to have measures ready to prepare for more production reaching the market this year.”

The department expects exporters, retailers and wholesalers can help absorb some quantities of the four fruits and pass them on to local and foreign consumers.

Mr Wichai said the aim of the meeting would be to help ensure price stability.

Last year the oversupply of pineapples was a nightmare for farmers as the price plunged to 3 baht per kilogramme from 12 baht in 2017. Many growers grew so frustrated that they gave their fruit rather than see it rot in their fields.

The good news for pineapple farmers is that production this year is expected to decline by 95,000 tonnes to 2.2 million, as some have switched to other cash crops, according to the Office of Agricultural Economics.

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