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Vietnam: Farmers rake in the dollars as melon shortage drives up price

From:vnagency.com.vn  Author:Unknown View Times:times  Time:2008-1-30

A shortage of watermelons is forcing families to pay up to twice the normal price in the run up to the Tet holiday. Watermelons from the southern provinces of Long An and Tien Giang, the main producers in the country, currently cost between VND3,000-5,000 (US$0.18-0.30) a kilo – against the usual price of VND1,800 ($0.11) a kilogram, said Le Minh Son, from Long An Province’s Agriculture and Rural Development Department. After taking into account transport and labour costs, the wholesale melon price is VND3,700-4,000 ($0.23-0.25) per kilo, according to Ba Dung, one of the largest melon distributors in Long An Province’s Thu Thua District.

"At the moment, I have to spend VND12,000 ($0.75) on a 2kg melon," said Pham Lai Giang, a buyer in HCM City, adding that yellow melons have also risen to between VND7,000-8,000 ($0.4-0.5) per kilo. "The price of melons continues to go up as Tet nears. The price is much higher than last Tet when the average price reached VND5,000 ($0.3) per kg", said Son. Ba Dung said the rising price was due to a shortfall in supply, rather than greed on the part of the growers. But in fact, the area of melon cultivation in Long An and Tien Giang provinces is higher than last year, said Son.

"The area of melon fields this year in Long An Province is more than 2,000ha, much higher than last year. About 12-13 tonnes of melon are produced per hectare," he said. In Tien Giang Province, melons are grown on around 1,000ha, the same as last year, according to Nguyen Van Khang of Tien Giang Province’s Agriculture and Rural Development Department. Farmers are reluctant to sow melons too early in case there is an over-supply and the price drops.

Despite shortages this year, farmers have got it about right, said Son, adding that farmers were being selective in the types of melon they grew, favouring those that fetch the highest prices. "Depending on how things eventually turn out, I will reap around VND25-30 million ($1,500-1,800) this year [from my melon crop]," said Tran Van Tu, a fruit farmer in Long An Province. Aside from greater profits for farmers, tailoring supply to demand has resulted in less choice for consumers.

"There are not as many varieties of melon as last year, but they are delicious," said Giang. Most farmers in Long An and Tien Giang provinces favour watermelons that are long, rather than round, and that have a satiny dark skin. "These melons do well in the Chinese market. Moreover, their hard skin makes them easier to transport over long distances, and they can be stored for a longer time, which the merchants like," said Tran Van Trieu, a farmer in Thanh Hoa District. The American melon, which is more rounded and has a striped green skin is also popular in Viet Nam, he added.

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