Wednesday, 10/02/2010 17:58

Fresh fruit exports slump, dried fruits pick up the slack

Though fresh fruit exports have slumped this year, their dried peers are doing much better.

So far, there have been only about ten tons of processed fruit since January 1, 30% lower than the same period last year.

"We've never seen this much difficulty in fruit exports," said Nguyen Duc Nam, Director of Saigon Fruit Export Joint Stock Company. So far, there have been only about ten tons of processed fruit since January 1, 30% lower than the same period last year. "I didn't see export volume this low even in the peak of the economic recession when demand from key markets such as Canada and Europe dropped," Nam told the Daily.

According to Nam, demand for fresh fruit at this time of year often increases as Vietnamese people living abroad usually gather to celebrate the traditional New Year and buy tropical fruit imported from Vietnam such as mango and papaya.

Tran Ngoc Hiep, Director of Binh Thuan Dragon Fruit Company, said dragon fruit consumption in the U.S., after a long period of prosperity, had weakened due to high cost. Hiep said the high cost of irradiation, a compulsory stage for the fruit to qualify for export, had slowed exports to the U.S.

On the contrary, the export volume of processed fruits, including canned and frozen fruits, has been on the rise since December.

Huynh Quang Dau, Director of Angiang Agricultural Technology Service Company (Antesco) said that demand for his canned mild corn, pineapple, nuts, beans and frozen fruits had gained 20% since December as demand in America and Europe increases during winter.

Antesco is the leading processed fruit and vegetable exporter in the country with a processing volume of 20 tons per day.

The logistics cost, however, raises concerns for the company. Dau said the CIF (Cost, insurance and freight) had increased by 5%.

According to the Ministry Industry and Trade, Vietnam's export turnover from fruit and vegetables to the U.S. and Europe is US$431 million, up 5% year-on-year.

VietNamNet, SGT

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