Unlocking the story behind the pineapple crop

Speaking with VAN News, Mr. Dinh Cao Khue, Chairman of the Board of Directors of Dong Giao Foodstuff Export Joint Stock Company (DOVECO), said this is not a new issue in areas where pineapples are grown outside organized supply chains. When prices are high, farmers can earn substantial profits, but there are also times when prices fall too low, causing significant difficulties for growers outside linkage programs, while the media simultaneously reports stories of pineapples being unsold or discarded.

Pineapple production within linkage chains remains profitable

Recent reports of collapsing pineapple prices and disappearing traders have raised concerns about the future of a crop that has been expanding rapidly in many localities. What is causing this situation?

Mr. Dinh Cao Khue: Like most fruit crops, pineapples have a very distinct seasonality. If left to fruit naturally without applying technical measures to stagger production, pineapples will ripen simultaneously around April and May each year. Last year, pineapple prices in the free market were very high, at times reaching VND 12,000-13,000/kg, generating significant profits for farmers. As a result, many growers this year concentrated on inducing flowering and fruiting so that harvests would occur during the main season (April-May). This led to a sharp increase in market supply. The peak pineapple harvest also coincides with the harvest season of many other fruits in northern Viet Nam, causing pineapple prices to decline significantly and making sales more difficult.

Anticipating these risks, DOVECO has consistently developed pineapple production linkages with farmers in northern provinces such as Ninh Binh, Nghe An, and Ha Tinh to supply raw materials for processing. We sign purchase contracts with stable prices from the beginning of the season.

To support farmers, despite very low market prices this year, we have continued purchasing pineapples at relatively high prices, always above the contracted floor price. For example, in Ha Tinh, DOVECO signed contracts at a minimum of VND 5,300/kg, but we are actually purchasing at VND 6,500-7,000/kg, and in some areas VND 7,500-8,000/kg. Meanwhile, production costs are only around VND 3,000-4,000/kg. Therefore, farmers within the linkage program are still earning reasonable profits. On average, one hectare of linked pineapple production can generate profits of VND 200-300 million, or even higher when technical processes are properly applied.

Thus, it is important to understand that falling prices and marketing difficulties only affect areas developed independently by farmers without contractual linkages to processing factories.

To help reduce difficulties for farmers, DOVECO has also made considerable efforts to purchase pineapples from non-linked areas in places such as Thanh Hoa and Nghe An. However, we must honestly state that priority is given first to farmers who have signed linkage contracts before purchasing from the open market.

It can be said that the recent situation of falling pineapple prices and sales difficulties in some localities is not new: spontaneous production, fragmented cultivation, and weak linkages with processing enterprises.

DOVECO has repeatedly proposed linkage arrangements with cooperatives and raw material zones in various localities. However, many farmers remain accustomed to independent production. When market prices rise, they often prefer to sell outside the contract rather than honor previously signed commitments. This weakens the sustainability of the chain of linkages.

In Thanh Hoa alone, there are currently more than 4,000 hectares of pineapples and as many as five to six processing factories, yet many farmers still prefer to sell freely. When prices are high, everyone wants to sell to the highest bidder. Everyone believes prices will continue rising. At that point, contract commitments suddenly become less attractive.

In addition, some processing plants currently focus solely on canned pineapple production and operate with outdated technology. When market conditions are favorable, they perform well, but when the market fluctuates, they struggle with product sales.

This highlights the importance of planning raw material zones and regulating production volumes. When stakeholders participate in a linkage chain, all benefit. Within linked production areas, enterprises and farmers jointly develop production plans from the beginning of the season.

Linkages create price stability and facilitate the dissemination of scientific and technical advances. There may be times when selling prices are lower than in the free market, but farmers always have a stable outlet and guaranteed profits. In contrast, independent production can generate very high profits when supply is scarce, but it can also expose growers to significant risks when market conditions change.

A Timeless Lesson

This year's pineapple market reflects the recurring problem of "bumper harvests leading to price drops," especially during peak harvest periods when supply exceeds demand. What solutions has DOVECO implemented to address this issue and maintain stable production and processing operations?

Mr Dinh Cao Khue: When developing linked raw material zones, we work with farmers to establish production plans from the start of the season. The cultivated area, expected output, fruiting schedules, and harvest timing for each region are all carefully calculated.

In northern Viet Nam, pineapples naturally ripen mainly during April, May, and June. This causes a large volume of supply to enter the market within a short period, creating pressure on consumption and pushing prices down. Recently, the free market has seen abundant pineapple supplies, low prices, and difficult sales. However, by July and August, after the peak harvest season has passed, supply may become scarce again, and prices could rise significantly.

In the past, we also faced major challenges in processing due to seasonality. During some months, raw pineapples ripened all at once, while in others there was no raw material available for production. Later, however, we developed technical solutions to stagger harvests and induce pineapples to flower and ripen in any month of the year (using the crown-covering leaf-folding technique). This has allowed us to secure a steady supply of raw materials and keep our factories operating year-round.

Thanks to this production planning capability, we have continued expanding pineapple-growing areas through production linkages in northern provinces such as Nghe An, Ha Tinh, Tuyen Quang, and Son La. Beyond product off-take commitments, we also provide comprehensive support to farmers, including planting materials and cultivation techniques. Many people think linkages simply mean guaranteed purchases by enterprises, but in reality, the greatest value lies in reorganizing production itself.

Enabling Viet Nam's pineapple industry to lead the market

How do you assess the potential and future prospects of Viet Nam's pineapple industry? What direction should the industry take?

Mr. Dinh Cao Khue: The pineapple market today is heavily influenced by major producing countries such as Thailand, the Philippines, Indonesia, Malaysia, several South American countries, and to some extent South Africa.

I believe Viet Nam's pineapple industry is fully capable of competing with the world's major producers. In the past, when I visited Thailand, I thought we would never be able to catch up with their production and processing standards. However, today we have surpassed them in productivity, raw pineapple quality, processing technology, and overall market competitiveness.

Pineapple is highly drought-tolerant, relatively resistant to storm-related damage, and not particularly difficult to cultivate. Therefore, there is tremendous potential to expand cultivation to hundreds of thousands of hectares across northern mountainous areas, the North Central Coast, the South Central Coast, the Southeast, the Central Highlands, and even many acidic soil areas in the Mekong Delta. With a sufficiently large raw material base, Viet Nam's pineapple industry could play a leading role in the global market.

The key is to build large-scale raw material zones with strong cooperation among enterprises, cooperatives, and farmers. All parties must maintain long-term commitments, trust, and shared benefits.

To promote production linkages, coordinated involvement from local authorities is essential. Enterprises participating in linkage programs must take responsibility for supporting farmers and purchasing all contracted output. Enterprises should also cooperate with one another, clearly define raw material zones, avoid competition for supplies, and organize production in a way that ensures quality and stability.

Scientific and technological advances must be applied more aggressively in both production and processing. Processing plants need to continuously upgrade technology to diversify products and expand value-added processing. This is the fundamental solution to securing stable market outlets. From the same raw material zone, factories can produce canned pineapple, concentrated juice, frozen pineapple, and various other processed products.

Only by diversifying products can enterprises adapt to and proactively manage market fluctuations. These are the foundations for increasing productivity, reducing production costs, and enhancing the competitiveness of Viet Nam's pineapple industry in international markets.

At the same time, greater attention must be given to breeding programs and variety improvement, particularly for high-quality varieties such as MD2. Investments in modern irrigation systems for concentrated production zones and greater mechanization from planting and cultivation to harvesting are also needed.

What is DOVECO's strategy for pineapple production and processing in the coming years?

Mr. Dinh Cao Khue: Our demand for raw materials is always very large. DOVECO currently operates production linkages in Ninh Binh, Nghe An, Ha Tinh, Son La, and several other provinces. We are continuing to expand pineapple acreage in Nghe An and Ha Tinh by thousands of hectares, with the goal of developing at least 20,000 hectares of raw material areas across the North Central region.

We have already planned to build a pineapple processing plant in Nghe An with an initial capacity of 750 tons of raw material per day, three times the capacity of our current plant in Tam Diep, Ninh Binh. The facility will be equipped with modern imported technology capable of deep processing and diversified product manufacturing to meet international market demand.

In terms of cultivation techniques, we have made remarkable progress. In the past, Queen pineapples yielded only about 20 tons/ha. Today, yields at Dong Giao have reached 60–70 tons/ha. For varieties such as Cayenne and MD2, yields can reach 80–90 tons/ha. With proper irrigation investment, yields could potentially reach 100 tons/ha. Combined with mastery of staggered production techniques and stronger market control, pineapple growers will undoubtedly achieve very high incomes.

To achieve the desired economic efficiency, we have simultaneously applied numerous technical innovations. Many growing areas have shifted from conventional plowing to excavator-based land preparation to create deeper and looser soil layers. Additional measures include optimized balanced fertilization, plastic mulching to suppress weeds and conserve moisture, heat and sunburn protection techniques, and integrated pest and disease management.

From a production standpoint, both enterprises and farmers have become fully proactive. The major challenge facing the pineapple industry can be addressed more effectively if the government prioritizes variety research, off-season cultivation techniques, robust policies that support mechanized planting and harvesting, and irrigation development. Under those conditions, Viet Nam's pineapple industry will be fully capable of mastering technology and leading the market.

$ 1 = VND 26,423. Source: Vietcombank.