Bac Giang Lychee Market in 2024: High Prices Amid Reduced Yield and Detailed Harvest Overview

Bac Giang province, renowned for its premium lychee, is witnessing significant changes in its lychee market in 2024. Despite soaring prices, reduced yields have impacted the overall market value. This comprehensive analysis delves into the current scenario, highlighting key factors and future implications for the lychee market in Bac Giang

Soaring Prices of Lychee in Bac Giang

1. Current Price Range: The selling price of lychee at farms in Bac Giang province now ranges from 55,000 to 90,000 VND/kg. This price surge is three times higher compared to the previous year, reflecting a strong demand for this exotic fruit.
2. Market Dynamics: Several factors contribute to the increased prices, including heightened consumer demand, both domestically and internationally, and the premium quality of Bac Giang lychees.

Detailed Harvest Overview in 2024

1. Early Season Lychee: The early ripening lychee, covering an area of 7,700 hectares, has an estimated yield of 50,000 tons. This early harvest period helps Bac Giang province meet market demand earlier in the season.
2. Main Season Lychee: The main lychee season spans 22,000 hectares, also producing an estimated 50,000 tons. This period is crucial for fulfilling both domestic and export market requirements.
3. Quality Standards: Bac Giang maintains and closely monitors 223 lychee growing area codes, covering over 17,000 hectares with an estimated production of 34,000 tons. Of these, 130 growing area codes are designated for the Chinese market, covering over 16,200 hectares with an estimated yield of 30,000 tons. High-standard markets such as the USA, Japan, Australia, the EU, and South Korea are estimated to receive 4,000 tons of lychee, with specific area codes designated for each country.

Commitment to Quality and Safety

1. VietGAP Standards: Bac Giang has dedicated 15,600 hectares to lychee cultivation under VietGAP standards, with an estimated production of 50,000 tons. VietGAP (Vietnamese Good Agricultural Practices) ensures safe and high-quality fruit, boosting consumer confidence and marketability.
2. GlobalGAP Standards: Additionally, 82 hectares are cultivated under GlobalGAP standards, yielding an estimated 500 tons. GlobalGAP certification opens up more lucrative international markets by adhering to stringent global agricultural practices.

Export and Economic Impact

1. Export Projections: This year, Bac Giang expects to export approximately 70,000 tons of lychee, representing 70% of the province’s total production. Both fresh lychee and processed lychee products will be maintained for export, with China continuing to be the traditional and largest market due to its long-standing trade relationship.
2. Economic Implications: Despite the high prices, the reduced yield has led to an estimated decrease in the total value of lychees produced in Bac Giang province by 300 billion VND compared to last year. The total estimated value for 2024 is approximately 6,500 billion VND.

Factors Influencing the Lychee Market

1. Weather Conditions: Unpredictable weather patterns have significantly affected lychee production. Unfavorable conditions such as prolonged droughts or unexpected rains can damage the crops, leading to lower yields.
2. Pest Management: Increased pest activity has also played a role in reducing the lychee yield. Effective pest management strategies are crucial for maintaining healthy crops and ensuring high yields.
3. Market Demand: The demand for Bac Giang lychee remains strong, both locally and in export markets. The high demand continues to drive prices upward, even with reduced supply.

Future Outlook and Strategies

1. Technological Advancements: Implementing advanced agricultural technologies can help mitigate the effects of adverse weather and pests, potentially stabilizing yields in future seasons.
2. Sustainable Practices: Adopting sustainable farming practices can improve resilience against climate change and pest infestations, ensuring a more consistent yield.
3. Market Expansion: Exploring new markets and expanding existing ones can help maximize profits despite lower yields. Strategic marketing and branding can highlight the premium quality of Bac Giang lychee, attracting more buyers.
4. Promoting and Advertising: Bac Giang province is actively promoting and advertising lychee consumption in conjunction with tourism development to support local farmers. Efforts include organizing promotional events, engaging in media campaigns, and highlighting the cultural significance of lychee in the region.
5. Quality Management: The province continues to manage and ensure the cleanliness and safety of lychee cultivation areas. Strict control of planting area codes and packaging facility codes is maintained to meet pest control and food safety standards, essential for export compliance.
6. Trade Partnerships: Bac Giang invites and connects traders and businesses involved in agricultural import and export to visit the province, inspect, and purchase lychee. This approach aims to strengthen trade relations and ensure a smooth supply chain.

Sustainable and Safe Farming Practices

1. VietGAP Certification: With 15,600 hectares of lychee cultivation under VietGAP standards, Bac Giang is committed to producing safe and high-quality fruit. The VietGAP certification process involves stringent checks and adherence to practices that minimize environmental impact and ensure consumer safety.
2. GlobalGAP Standards: In addition to VietGAP, Bac Giang has 82 hectares under GlobalGAP standards, producing 500 tons of lychee. This certification allows access to high-demand markets in Europe, North America, and other regions with strict import regulations.
3. Integrated Pest Management (IPM): To combat pests effectively, Bac Giang implements Integrated Pest Management (IPM) practices. IPM combines biological, cultural, mechanical, and chemical tools to manage pest populations in an environmentally and economically sustainable manner.

Conclusion

The lychee market in Bac Giang province in 2024 presents a mixed scenario of high prices and reduced yields. While the selling price has tripled, the overall market value has decreased due to a significant drop in production. Bac Giang’s commitment to quality through VietGAP and GlobalGAP standards ensures that its lychee remains competitive in both domestic and international markets. To navigate these challenges, stakeholders must focus on sustainable practices, technological advancements, and market expansion strategies.

For more updates and insights on the lychee market in Bac Giang and other agricultural trends, stay tuned to our blog. Discover how the premium Bac Giang lychee can still thrive amid changing market dynamics.