In Tra Vinh Province, Vietnam, orange farmers are facing economic challenges due to a significant decrease in orange prices, now at 0.0008 USD per kilo. This price drop has led to a reluctance among farmers to harvest, fearing losses exceeding the cost of labor and materials. Experienced growers like Pham Van Dang highlight the impossibility of profit at these rates, especially if hiring additional labor. The scarcity of traders has forced some, including Dang, to sell oranges in small quantities or to juice shops at slightly higher prices.
The situation is particularly dire for those with large investments in orange cultivation, such as Ho Van Hai, who has 10 hectares of land dedicated to orange farming. The return on investment has plummeted, with the current selling price not covering basic expenses. Previously, orange prices ranged from 0.0007 to 1.38 USD/kg, allowing farmers to earn nearly 39440 USD per hectare. However, the past two years have seen a drastic change, with many farmers struggling to cover bank interest due to increased input costs and challenging market conditions.
The decline in orange prices is attributed to limited domestic consumption, adverse weather conditions, and an oversupply in the market. The Mekong Delta and Southeast regions have seen a continuous increase in orange cultivation area, contributing to the surplus. Tra Vinh is expected to have 4.700 hectares of orange farms by 2024, with an estimated annual output of nearly 180.000 tons.
Source: Vietnam.VN