Prices of Ecuadorian Dragon Fruit Expected to Rise After Exports to China Open

On July 27, the General Administration of Customs of China formally granted market access to fresh dragon fruit from Ecuador under the terms of the bilateral phytosanitary protocols signed between the two countries earlier this year. With this agreed protocol, red dragon fruit, and yellow dragon fruit, also known as kirin fruit, are explicitly permitted to be imported into China.

Compared with the red-skinned dragon fruit, the Ecuadorian yellow-skinned dragon fruit or Kirin fruit is far more demanded by the Chinese market. Yellow dragon fruit is native to Ecuador and surrounding countries. They have been growing in popularity among consumers in China in recent years owing to their striking appearance and higher sweetness compared with red dragon fruit. As there has historically been little domestic cultivation in China, yellow dragon fruit has been fetching premium prices as demand has grown.

Yellow dragon fruit is available all year in Ecuador, but the two peak harvest periods in a year are from October to December, and a large harvest in June and July. However, production is forecasted to decrease during August and September, lowering the available supply for exports considerably and influencing the price increase. To this end, the initiation of dragon fruit shipments to China will be closely linked to the season availability in Ecuador.

Since the start of August, the dragon fruit supply in Ecuador has been low as expected for this time of the year due to the seasonality. According to Douglas Montiel, Tridge’s Origination Manager in Ecuador, during August and September, the lower availability of both the dragon fruit varieties is the weakest of the year. “Around those months, prices for Ecuadorian dragon fruit reach from USD 2.5 to 4/kg for red dragon fruit and from USD 2.75 to 4.5/kg on yellow dragon fruit”, he mentioned.

Dragon fruit production is forecasted to kick off in October as the high harvest season starts in the Amazonia city known as Palora, where over 80% of the yellow dragon fruit from Ecuador is produced. The peak harvest season typically brings prices down, given the wider product availability. However, according to Mr. Montiel, this year, due to the new Chinese market access, prices are estimated to reach historic highs. “It seems that this year’s supply won't be enough as producers expect high demand for yellow dragon fruit from China and the United States. The high demand will keep dragon fruit prices at a high level through the season, reducing the competitiveness of Ecuadorian dragon fruit in the global market”, he explained.

In 2021, Ecuador exported 17,895 mt of yellow dragon fruits, an increase of 60% from 11,260 mt in 2020. Ecuador exported dragon fruit to over 27 countries, and the main export markets include the US with an 84% market share, Colombia with a 5.4% market share, and Singapore with a 2.7% market share. With the new access to the Chinese market, it is expected that export could reach 45,000 mt annually over the next two years, which is triple the volume the US currently imports.