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China’s Robust Demand Drives Up Lychee Prices in Vietnam

May 21, 2024

China’s domestic lychees have experienced low flowering rates and a sharp decline in production this year on account of adverse weather conditions, leading to a significant rise in market prices. Vietnam, a major source of imported lychees for the Chinese market, has also now begun its own lychee season with prices much higher than in previous years.

Bac Giang province is one of Vietnam’s main lychee-producing regions, with a total cultivation area of 30,000 hectares and an annual output of approximately 200,000 metric tons. In 2023, 55.1% of the total output was exported, with over 98% going to China.

However, this year, during the flowering stage, Vietnamese lychees were exposed to weather patterns similar to those in China. As a result, Bac Giang’s lychee production is expected to fall by half compared with 2023, amounting to only 100,000 metric tons, with approximately 70,000 metric tons designated for export.

The owner of a lychee purchasing company in Luc Ngan County, Bac Giang, noted that lychee prices have been rising in recent years, with China’s robust demand for the fruit a major contributor. Another local lychee grower said that farm gate prices for grade 1 fruit had reached nearly 60,000 Vietnamese dong ($2.36) per kilogram, whereas the previous prices were only 40,000–45,000 dong ($1.57–1.77) per kilogram.

In 2023, over 200 Chinese traders visited Luc Ngan to purchase lychees. According to Nguyen Van Hai, vice chairman of the county’s People’s Committee, many Chinese traders have already arrived this year for procurement. He added that the harvesting of early-season lychees had just begun in the region. The county’s total lychee output this year is forecast to reach 18,500 metric tons. Owing to the estimated 50% decrease in production, lychee prices are running high, with farm gate prices hovering around 50,000 dong ($1.96) per kilogram.

In Hai Duong province’s Huyen Thanh County, a region known as the “lychee capital” of Vietnam, this year’s lychee production is anticipated to be just over 20,000 metric tons, corresponding to half of the output registered in 2023. However, the quality of lychees has also improved, and prices are expected to increase by 10–20% compared with previous years. The first batch of lychees from the region was exported to Australia by air on May 14. This year, local lychees will also be exported to additional overseas markets such as France, Thailand, Singapore and Canada.

Image: Pixabay

This article was translated from Chinese. Read the original article.


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