China Bans Dragon Fruit Imports from Vietnam for 4 Weeks

Published 2022년 1월 5일

China recently imposed a four-week ban on dragon fruit imports from Vietnam due to detecting new traces of COVID-19 infections in the previously ordered shipments. The ban has been imposed on four varieties of dragon fruit which are sourced from the Binh Thuan and the southern province of Long An - the largest dragon fruit-producing region in Vietnam. This is a problem for Vietnam as only 20% of the volume produced is consumed within Vietnam and the remaining 80% is exported, with China being the largest importer of the fruit. The ban has already been reflected in the prices of dragon fruits in Vietnam as the farmers and traders are selling their export quality fruit at lower prices to avoid spoilage.

On 29th December 2021, China imposed a four-week ban on dragon fruit imports from Vietnam. The ban was based on the grounds that COVID-19 infections had been detected in previous shipments by the Chinese customs in shipments received between the dates 20th November 2021 and 27th December 2021. The ban is going to last till 26th January 2022 on delivery through the Huu Nghi Border Gate in Lang Son Province, which is the second-largest border gate for delivering dragon fruits to China. The ban is placed on four varieties of dragon fruit sourced from the Binh Thuan and the southern province of Long An, which are the largest dragon fruit-producing regions in Vietnam.

A ban on imports from the Binh Thuan province will create a major glut in the market as it is the largest dragon fruit-producing region in the country and about 80-90% of the dragon fruit output of the province is mainly exported to China. Generally, only 20% of the volume produced is consumed within Vietnam and the remaining 80% is exported, with China being the largest importer of Vietnamese dragon fruit. This ban imposed by China also coincides with the upcoming dragon fruit season in Vietnam which is set to bring fully ripe and large volumes of dragon fruit to the market.

The current ban has already started to be reflected on dragon fruit prices in Vietnam as the volume available in the market exceeds the consumption demand. Furthermore, the farmers and traders are forced to sell their export-quality fruit at a lower price before they get over-ripened or spoiled. Around 400 container trucks carrying dragon fruits returned from the border due to the ban and were forced to sell the produce at a 30% loss. As soon as the ban was announced, the price of export-quality dragon fruit fell down to USD 0.22 - 0.31 per kg which is 41% lower than the ideal price of USD 0.44 per kg. The farmers are finding it very difficult to sell the fruits at such low prices as the cost of production was relatively higher in 2021 given the high cost of power, fertilizer, and labor.

A sharp drop in dragon fruit prices has caused Binh Thuan farmers to sell their fruits at a loss as the market price crashes. China’s decision to ban imports has severely impacted the production and consumption of dragon fruits in the province. The Vietnamese bureaucrats are urging China to reopen their border gates with Vietnam and to ensure that bilateral trade development continues and there is no significant loss to farmers in Vietnam and fruit wholesalers and traders in China.