Vietnamese Dragon Fruit Prices Surge Amid Drought Conditions

In Vietnam, prolonged drought conditions have triggered a significant surge in Grade 1 dragon fruit prices, soaring to USD 1.77 per kilogram (kg) at the farm gate, marking a 50% year-over-year (YoY) increase. Grade 2 dragon fruit prices fluctuate between USD 1.37/kg and 1.57/kg. Despite the potential for substantial profits, ranging from USD 9,821 to 15.7 thousand per hectare (ha) for farmers, reduced yields by 20% YoY have impacted overall earnings.

The imbalance between demand and supply, exacerbated by adverse weather conditions, has resulted in a decrease in traders' daily purchases and a notable 20 to 30% decline in output. Although prices have seen an uptick since Feb-24, experts anticipate a decline with the onset of the primary harvest season.

Vietnam Fruit and Vegetable Association attributes the price surge to heightened demand from China and shifts in farming practices. Many farmers have transitioned to cultivating alternative crops in 2023. Despite these challenges, dragon fruit exports in the first two months of 2024 witnessed a nearly 10% YoY increase, with significant markets including China, Thailand, Cambodia, Australia, New Zealand, Japan, and South Korea.