Hard to find output market for 8,000 tons of Muong Khuong pineapple

Hard to find output market

From now until May, Muong Khuong, the capital of pineapple of Lao Cai province will harvest at least 8,000 tons of pineapple. However, the farmers here are on pins and needles as they find it difficult to access output market.

Le Thanh Hoa, Director of the Office of Agriculture and Rural Development of Muong Khuong district (Lao Cai province) said up to 90% of the district's processed pineapple are typically exported to Russia. However the ongoing Ukraine-Russia conflict makes shipping difficult. Even if canned pineapples are shipped to Russia payment will be another problem. Therefore, so far domestic enterprises have remained waiting and watching the news and they have not dared to buy in bulk.

Currently, the measure taken by the district's competent authority is calling for domestic consumption and initially, it is effective. Besides, a cooperative in Muong Khuong is acting as a middleman to buy 60-70 tons of pineapple per day.

"We are working with Winmart and other retail chain systems across the country to put Muong Khuong pineapple up for sale in the supermarkets," said Le Thanh Hoa.

Also according to Hoa, Muong Khuong pineapples are guaranteed 100% in terms of quality as they are grown without any pesticide and herbicide. " Muong Khuong pineapples are superior compared to those grown in other regions because Queen variety is chosen to cultivate in the area. This pineapple variety has a high Brix value suitable for eating raw and processing. Other pineapple varieties such as Cayen are only suitable for processing because they taste sour.  Muong Khuong pineapples are typically aromatic and sweet so they are favored by the consumers in the southern provinces," Hoa emphasized.

Previously, the local farmers mainly exported their pineapples to China. However, domestic enterprises now have taken advantage of this raw material growing area.

Currently apart from A Chau processing factory that is buying pineapples on the spot, Dong Giao Foodstuff Export Joint Stock Company based in Ninh Binh and two other enterprises based in Hung Yen and Ha Nam are purchasing the fruits.  However with a large volume of pineapple is ready for harvest it's difficult to find output market.

High input costs, low pineapple prices

Contrary to the local farmers' expectations, pineapple prices are now only 50-60% of the prices of the same period last year. In addition, the prices of production materials including fertilizer have increased leading to rising input costs.

Nong Van Thuan living in Na Ma 1 village, Ban Lau commune (Muong Khuong district, Lao Cai province) said "I have grown pineapples on two hectares. Each cropping season I applied phosphate twice and nitrogen once. Last year, fertilizer prices doubled while pineapple prices halved. Most of pineapple growers like me suffered losses. Some farmers were luckier because they could recoup their expenses that did not include labor cost."

According to Muong Khuong farmers, phosphate price is now at VND6.700 per kilo, nitrogen price is at VND18,000 per kilo. They will need 1 ton of phosphate, a half ton of nitrogen worth VND25 million to fertilize 10,000 pineapple plants on average. Typically, they grow 50,000-60,000 plants per hectare.

Fertilizers alone cost them at least VND125 million per hectare. Besides, pineapple growers have to invest around VND20-30 million per hectare for seedlings in addition to about VND20-40 million for transporting pineapples from farms to collection points depending on distance. The total amount is estimated at VND170-180 million.

Meanwhile, according to Thing Phong Cooperative, a pineapple purchaser because it's difficult to sell pineapples for processing plants the cooperative has been collecting the fruits from the local farmers to sell to wholesalers. The first-grade pineapples (>700gram per fruit) are priced at VND4,500 per kilo and the second-grade ones are priced at VND3,500 per kilo.

Thus, in case of good care pineapples can reach a size of 700gram per fruit and the yield can be 40 tons per hectare. With the current prices, pineapple growers can earn only enough money to cover all costs the farms need to pay, not include their effort.

To Viet Thanh, Vice Chairman of the People's Committee of Muong Khuong district  (Lao Cai province) said pineapple consumption is now getting better in the area as processing factories inside and outside the province are resuming purchasing activities and the market for raw pineapples is flourishing. Some traders reported that 150 tons of pineapples are consumed every day on average.