Durian prices are so high that many Chinese partners want to reduce orders.

Sharing at the forum "Identifying the current situation of durian consumption and export linkage in 2023 and solutions for effective and sustainable development of the Vietnamese durian industry", organized by the Ministry of Agriculture and Rural Development and Vietnam Agriculture Newspaper on September 11, many export enterprises expressed their concerns about the "chaotic price" situation of the durian market and excessively high prices.

Giá sầu riêng tăng quá cao, nhiều đối tác Trung Quốc muốn cắt giảm đơn hàng - Ảnh 1. — Durian prices are so high that export businesses are worried about losing capital.

Mr. Le Anh Trung, Director of External Relations of Van Hoa Holding Group (HCMC), shared that this enterprise has customers who are the largest wholesale market supermarket chains and systems in China.

To improve productivity and export quality of Vietnamese agricultural products to the Chinese market, businesses are consolidating and developing logistics chains to reduce transportation costs and increase competitiveness.

Regarding durian, Van Hoa Holding Group has a contract to supply about 20,000 tons to Chinese partners and customers. However, the current price of durian has increased too much, and some Chinese partners and customers have made moves to cut orders.

To maintain its commitment to purchasing from farmers and to ensure its reputation with Chinese partners, the company even has to accept losses after each export shipment. But the more it does, the more it loses, and if this situation continues, the company will not be able to guarantee the purchase of products from farmers as committed.

Also according to information at the forum, the price of durian in Dak Lak is fluctuating from 70,000 - 75,000 VND/kg and has decreased after reaching the peak at the beginning of the season from 90,000 - 95,000 VND/kg. The reason is that durian is now in the main season, the output is higher so the price has decreased accordingly. Meanwhile, durian consumption has also decreased so there is a situation where gardeners are urging traders to cut their goods while many warehouses are temporarily stopping purchasing.

According to Mr. Vu Ngoc Huy, Deputy General Director of Dung Thai Son Import-Export Trading Joint Stock Company, the input price of durian in Vietnam is higher than the purchase price at wholesale markets in China. This is the reason why export enterprises are having to operate at a standstill, and many enterprises have even had to close down.

Mr. Huy also said that durian prices have increased so much that his company is currently operating at only 40% of its capacity. "Due to the high price of durian, exporting companies will suffer losses. In Dak Lak, about 50% of businesses are currently closed," Mr. Huy said.

Sharing his perspective on the cause of the "disordered price" of durian, Mr. Nong Ngoc Trung, Chairman of the Board of Directors of Golden Field Company ( Lang Son ), said that in reality, there are currently a number of businesses, organizations, and individuals who do not understand durian but compete to produce this product, raising prices, disrupting the durian industry. This is a manifestation of unhealthy competition.

Mr. Trung believes that with the huge potential and demand for durian in the Chinese market, businesses need to join hands and work together to increase exports instead of competing on price.

Also at the forum, Mr. Nong Ngoc Trung recommended that in order to increase the export value of durian in the Chinese market in the coming years, businesses should focus on investing in technology to promote the processing of durian products, as this is a field in which Vietnamese businesses are weaker than Thai ones in the Chinese market.

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