Durian, Coffee… Keep Winning!

In the early days of the Year of the Wood Horse, although domestic trade is not as active, international prices still show positive signs.

Durian prices are still hot

Last year, durian was the most impressive export item, earning $2.243 billion with a yield of nearly 595,600 tons; the average export price was $3,766 ​​per ton, equivalent to over 90,000 Vietnamese dong per kilogram. Of these, fresh durian is the most exported item with an average price of 93,000 Vietnamese dong per kilogram. Vietnam’s durian is most harvested in September and October (in the Central Highlands region) and May and June (in the Mekong Delta region).

During the peak times of durian, the selling prices are lower, but with low investment costs and high productivity, farmers make profits of several hundred million Vietnamese dong per hectare. Currently, durian is the most economically efficient fruit tree, helping many farmers become millionaires.

At the start of the Year of the Wood Horse, off-season durian farmers in the Mekong Delta region were excited when farm prices ranged from 120,000 to 150,000 Vietnamese dong per kilogram (with Ri 6 variety) and 170,000 to 200,000 Vietnamese dong per kilogram (with Monthong variety). With these price levels, according to the farmers’ calculations, even though they have to invest heavily to process the off-season fruits, the profits they gain can reach 1 billion Vietnamese dong per hectare.

Mr. Dang Phuc Nguyen, Secretary General of the Vietnam Fruits and Vegetables Association, believes that Vietnam has many advantages in durian production with year-round harvest and close proximity to the consumption market.

This fruit can also be exported to many markets outside of China with a variety of processed products. Therefore, in the coming years, durian will still be the “trump card” of the fruits and vegetables sector. However, the durian industry must maintain quality, food safety, and reputation in the market in order to maintain its advantage.

Coffee prices continuously break records

In addition to durian, in the early days of the Year of the Wood Horse, coffee prices reached a historical peak of over 80,000 Vietnamese dong per kilogram on February 12 (the 3rd day of Tet holiday), beyond the imagination of those with long experience in the industry and nearly double the price compared to the same period in 2023.

On the London market, the highest price for Robusta coffee delivered in March is $3,247 per ton, and delivered in July is $3,050 per ton, due to the increased harvest from Brazil after April. However, compared to the $1,200 – $1,400 per ton prices in previous years, Vietnam’s “black gold” has a much higher price.

Mr. Phan Minh Thong, CEO of Phuc Sinh Group, said that global coffee roasting companies have been “relying on” Vietnamese coffee for many years, but they still buy the product at low prices and have made a lot of money. This situation has left farmers dissatisfied with coffee cultivation, leading to a decrease in planting area and productivity.

“Large coffee companies in the world should be less greedy and work together with exporters and coffee farmers to develop this industry sustainably,” Mr. Thong straightforwardly stated. Therefore, Vietnamese farmers have not received a fair share of the profits in the coffee value chain, which is dominated by major players.

According to farmers, with the coffee price ranging from 70,000 to 75,000 Vietnamese dong per kilogram, farmers’ profits reach about 100 – 150 million Vietnamese dong per hectare per year, a very good level in recent years, but still far behind the current popular fruit, durian. However, coffee is an industrial crop, requiring less labor and not as much pressure for immediate sales as fruits, which is its advantage.

The forecast from the Vietnam Coffee – Cocoa Association states that in 2024, despite the decline in coffee production, export value can reach from 4.5-5 billion USD, the highest level ever thanks to high selling prices.

Rice farming achieves big win

Since the end of July 2023, when India, the country that accounts for 40% of the global white rice market share, banned the export of ordinary white rice, the price of this item has continuously increased. In just a few weeks, the price of rice has risen by 100 – 150 USD per ton. The price of 5% broken white rice, which used to be around 450 – 500 USD per ton, has surged to 640-650 USD per ton; the price of fresh paddy has increased from about 6,000 Vietnamese dong per kilogram to 9,000 – 10,000 Vietnamese dong per kilogram. In 2023, rice exports reached record highs with a value of 4.78 billion USD, an increase of 38% compared to 2022.

According to farmers, thanks to the high price of rice while the cost of inputs decreases, farmers earn profits of over 100 million Vietnamese dong per hectare per year. This is a large-scale crop with millions of farmers involved, so when the price of rice rises, it significantly contributes to increasing the income of rural people. Rice is also a low-investment crop with a high level of mechanization, so farmers with many rice fields or those who rent large areas of land for cultivation can have a sustainable livelihood with this traditional occupation.