Seasonal Fluctuations in Dried Fruit Prices in Vietnam

Dried fruit is a popular food in Vietnam, thanks to its exquisite taste and nutritional benefits. The export value of this product from Vietnam has reached about 1.2 billion USD in 2022, an increase of 20% compared to 2021, with expectations of further growth soon. However, the landscape is not perfect as market price fluctuations pose significant challenges for businesses in the dried fruit industry. Read on to the end of this article to explore with WTP Agri how to tackle these challenges, promising valuable insights for your business.

Overview of the Export Market for Dried Fruit in Vietnam

The export turnover of dried fruit in Vietnam is booming, with an expected figure of 3.4 billion USD by 2023. Major markets include China, South Korea, Japan, the EU, and the United States.

Vietnam, with favorable soil and climate conditions, has solidified its position in the international market with a variety of products and impressive production volumes. The country's potential is demonstrated through a modern and technologically advanced system of factories, optimizing the production process. Vietnamese products not only meet high-quality standards but also offer exceptional taste.

A notable advantage is the competitive production cost, thanks to abundant labor and trade agreements that minimize export costs. However, this promising market still faces challenges such as seasonal price fluctuations and intense competition in the international market. This demands flexibility in business strategies to cope with dynamic factors and maintain Vietnam's strong position in the dried fruit export industry.

Causes of Dried Fruit Price Fluctuations

The main causes of price fluctuations in dried fruits in Vietnam include:

• Climate Change: This has led to rising sea levels, causing saline intrusion – the phenomenon of seawater infiltrating into the mainland, reducing the quality of freshwater and affecting agricultural production. Saline intrusion typically occurs during the dry season, from November to April of the following year, significantly impacting coastal provinces in the Mekong Delta region, where various fruits like mangoes, dragon fruit, and durian are cultivated. Therefore, the prices of dried fruits in Vietnam increase during the dry season due to a reduction in the supply of fresh fruits influenced by saline intrusion. For example, the price of dried mangoes increased from 150,000 VND/kg in October 2020 to 250,000 VND/kg in March 2021, a 66.7% increase. Similarly, the price of dried dragon fruit increased from 180,000 VND/kg in October 2020 to 300,000 VND/kg in March 2021, also a 66.7% increase.
• Harvest Season: During the harvest season, dried fruit prices are generally lower compared to the scarcity season. This is because, during the harvest season, the supply of fresh fruits is abundant, resulting in lower fresh fruit prices and, consequently, lower production costs for dried fruits. For example, the price of dried lychee in Luc Ngan, Bac Giang, in June (harvest season) is only around 35,000-55,000 VND/kg, while in January (scarcity season), prices can reach 80,000-120,000 VND/kg.

• Market Demand: During festive occasions, such as holidays and Tet (Lunar New Year), the demand for dried fruits increases, leading to a corresponding increase in prices. For instance, prices of dried fruits at supermarkets and retail stores typically rise by approximately 10-20% during the Tet holiday.

• Production Costs: The production of this product includes various costs such as raw material costs, labor costs, transportation costs, and storage costs. For example, transportation costs depend on fluctuating fuel prices, impacting the overall cost of the product.

Response Solutions for Dried Fruit Price Fluctuations in VietNam for Your Businesses

For businesses, dealing with price fluctuations is an undesirable challenge. Here are some suggested solutions to make it easier to cope with these challenges:

• Market Monitoring: Pay close attention to market trends to stay informed about dried fruit prices and consumption demands. This will help businesses make informed and timely business decisions.
• Reasonable Business Planning: To minimize the risk of price fluctuations, businesses should establish a sensible business plan that includes price projections and dried fruit consumption forecasts for different seasons.
• Product Diversification: Manufacturers can diversify their product range, producing dried fruits from various fruit types. This will help reduce the risk associated with price fluctuations for a specific fruit.
• Collaboration with Reliable Suppliers: A reputable supplier will propose a suitable price at all times. With their credibility, they will have clear contract terms regarding prices and price insurance tools to limit unnecessary risks for you. In the long run, this cooperative relationship will offer more favorable pricing.

>>> See more: Why You Need a Reliable Dried Fruit Supplier for Your Products

WTP Agri, a reputable dried fruit supplier in Vietnam, stands out with a cultivation area exceeding 350,000 hectares and 20 modern factories, producing over 20,000 tons of dried fruit annually. We take pride in offering more than 10 high-quality dried fruit varieties, meeting various international standards such as ISO, HALAL, IFS, ... ensuring confidence and peace of mind for our customers.

Our products have made a mark in demanding markets worldwide, including the US, EU,.... With years of experience and expertise in the dried fruit export industry, we are committed to being your top choice of partner, assisting you in overcoming the challenges of price fluctuations with ease.

Do not hesitate to reach out to us for further insight and exploration into how we may contribute to the sustainable development of your enterprise. Contact us by filling out the contact form which you can find on this page. Either get in touch with our team at agri.crm@wtp.vn or give us a call on (+84)971 279 099. And remember we can also provide tailored service if you need it.