Chinese traders have flocked to Bac Giang province to buy large quantities of lychees, driving prices to a historic high.
The influx of Chinese traders in Bac Giang has led to a significant increase in lychee prices, reaching unprecedented levels. The scarcity of lychees combined with high demand has resulted in an average price surge, setting new records.
Farmer Nguyen Van Hien from Luc Ngan district, Bac Giang, shared with VietNamNet on June 15: "This year's lychee prices have been rising steadily as the season progresses." A poor harvest and limited supply, coupled with high demand from Chinese buyers, have pushed prices to an all-time high.
On the morning of June 15, Mr. Hien harvested 300 kg of lychees and sold them at 80,000 VND/kg, earning 24 million VND. "Every year, I sell my family's lychees during the harvest season. But this is the first year that each truckload has brought in so much money," he said with a smile. Despite a poor yield from his 1-hectare lychee garden, the high prices have compensated for the lower output.
At the beginning of the season, lychees were sold at 45,000 VND/kg, which then increased to 60,000 VND/kg, and now to around 80,000 VND/kg. However, the lychee season is nearing its end, with the harvest expected to conclude in a few days.
In Hong Giang commune (Luc Ngan), lychees are being purchased at prices ranging from 65,000 to 85,000 VND/kg, depending on the quality.
Unlike previous years, where prices would drop during the peak season due to abundant supply, this year's prices have remained high. Compared to the same period last year, prices are 3-4 times higher.
The People's Committee of Luc Ngan district reports 126 lychee purchasing points and over 1,000 drying and processing kilns in the area. However, some weighing points have temporarily halted operations due to a lack of goods.
Nguyen Van Tho, Deputy Head of the Planning and Finance Department of the Department of Industry and Trade of Bac Giang province, stated that lychee prices have never been this high. The average price this year is the highest since lychees became a major commodity in the locality.
The Department of Industry and Trade of Bac Giang province estimates the total lychee output for the season at 100,000 tons, with 67,000 tons harvested by June 14. Of these, 45,430 tons are early-ripening lychees, and 21,580 tons are main-season lychees.
Lychees are being bought at 55,000-85,000 VND/kg, with some places purchasing at up to 90,000 VND/kg. To date, 43,000 tons of lychees have been sold domestically, while 24,000 tons have been exported to various countries.
China remains the primary market for lychees, importing 23,800 tons. Exports to Japan, the US, the EU, Australia, Dubai, and Southeast Asian countries are also significant.
Mr. Tho noted that not only Bac Giang province but also China has experienced a poor lychee crop this year. Consequently, Chinese traders are aggressively buying lychees to meet domestic demand. Despite the poor harvest, high prices have ensured profitability for farmers.
In addition to China, many businesses are increasing lychee purchases to fulfill export orders. Mai Xuan Thin, Director of Red Dragon Production, Trade and Service Co., Ltd., reported strong growth in lychee exports to Australia, the US, and Japan, with orders to Japan expected to increase by 30-40% compared to last year.
Naoki Matsuda, a specialist at Aeon Global Merchandising Company, stated that Japanese consumers highly value Vietnamese lychees. The company plans to export about 30 tons of lychees to Japan this year, a 120% increase from last year.
Businesses report export prices for lychees ranging from 6-15 USD/kg, depending on the market. In many countries, Vietnamese lychees are sold in supermarkets at prices between 400,000-600,000 VND/kg.