High transport costs affect southern fruit sales

09:50 | 29/08/2016 Trade

(VEN) - Southern fruit fetches too high prices on sale in Hanoi mainly due to high transport costs, according to agro-traders.

High transport costs affect southern fruit sales

Vinh Long is proud of Nam Roi sweet grape fruit

South Vietnam is renowned for fruit specialties such as coconut, orange, mandarin, durian, banana, rambutan, mangosteen, custard apple, mango and grapefruit. However, these fruit specialties are sold in Hanoi at very high prices due to  transport costs and intermediate traders.

According to Director of the Biggreen Safe Food Vietnam Co., Ltd Nguyen Tien Hung, the company had to transport fruit products by air to ensure their freshness, which increased their sales prices in Hanoi. For example, every kilogram of air-transported red-fleshed dragon fruit fetched some VND14,000-higher price than land-transported counterpart. It was all the same with strawberry transported from Da Lat to Hanoi, which fetches 35 percent higher prices.

Packaging costs, which also account for 15-20 percent of cost prices, plus cargo handling and preservation charges have pushed up southern fruit prices by 15-30 percent.

Greenlife Chain Store Manager Do Ngoc Tram said transport costs added up a large amount of southern fruit cost prices. In addition, safe food stores just take a small amount of southern fruit products for sales and they are poorly linked together.

Related authorities should rule the price

According to Deputy Director of the Hanoi Department of Agriculture and Rural Development Nguyen Huy Dang, seven of 14 southern provinces with fruit specialties have commercially linked with Hanoi. However, these provinces have been inexperienced in trading and distribution. Transport difficulty, together with warehouse, preservation areas and equipments are key problems with fruit producers from the South.

To overcome these difficulties, several food stores in Hanoi have jointly bought large amounts of quality fruit products, which may help to reduce transport costs. “We have just piloted the purchase of tomatoes in bulk and the cost is reduced by VND1,000-2,000 per kg,” Do Ngoc Tram said.

It is difficult to deal with high transport costs of southern agricultural products; so, related authorities should join hands, Nguyen Tien Hung said.

Experts agreed that it is necessary to have a policy to promote sales of southern agricultural products, especially fruit, in Hanoi.

Red-fleshed dragon fruit which was sold for VND3,000 per kg in Tien Giang fetched VND40,000-50,000 per kg in Hanoi. The paradox was all the same with other fruit such as mango, longan and rambutan.

 

Nguyen Hanh

Theo ven.vn