fishhook| Vietnam's production cuts lead to price increases: the huge purchase volume in the Chinese market has a significant impact

News summary

Vietnam's lychee production has dropped by more than half this yearfishhook, a large number of Chinese businessmen flocked to acquirefishhookPrices soared. Litchi production in Vietnam's Bac Giang Province in 2023 will be 20fishhook.160,000 tons, more than half of which are exported to China. This year's output is expected to be halved to about 100,000 tons. Strong demand in the Chinese market has lifted prices.

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[Chinese market demand for Vietnamese lychee drives up prices]

This year, domestic lychee production has been significantly reduced due to adverse weather, causing traders to flock to Vietnam to buy lychee, which in turn drives prices up. Vietnam's Bac Giang Province has become the epitome of this phenomenon. Local lychee production fell by about 50% year-on-year, but insufficient market supply has caused lychee prices to rise significantly.

[Fruit farmers are affected, and lychee prices soar]

In Xin 'an County, Bac Giang Province, Vietnam, a fruit farmer demonstrated the direct impact of this year's production of lychee production. Although the output fell by nearly half, the income of fruit farmers has not been greatly affected due to the increase in purchase prices. He sold lychees at a price of VND 70,000 per kilogram, double the price last year.

[Purchasing warehouses witnesses the price of lychee rising to the sky]

The person in charge of the lychee purchase warehouse in Lu 'an County, Beijiang Province reflected the recent upward trend in prices. Litchi prices have continued to rise due to large purchases by Chinese businessmen.

[Beijiang litchi production and exports declined]

According to data from the Beijiang Provincial Department of Industry and Trade, the province's total lychee output in 2023 will exceed 20fishhook.160,000 tons, of which about 111,200 tons are used for export. Affected by the decline in output this year, exports are expected to shrink to 70,000 tons, mainly sold to the Chinese market.

[Haiyang litchi production declines, quality improves]

In Haiyang, Vietnam's "lychee capital", although this year's output has been halved, the price of lychee is expected to increase by 10-20% compared with previous years due to improved quality. Egg white lychee and egg-shaped lychee in Qinghe County have entered the harvest period, and the selling price is 80,000 - 100,000 VND/kg and 40,000 - 50,000 VND/kg respectively.

[Vietnam litchi prices hit new high in recent years]

Industry insiders generally believe that due to the dual factors of strong demand in the Chinese market and reduced output, this year's lychee price has become the highest in recent years.