High pressure on finding outlets for Vietnamese avocados

This year’s main avocado season has recorded a paradox: while output has increased sharply, selling prices have plummeted. Avocado prices have fallen sharply in many key growing areas in the Central Highlands. Consequently, both farmers and traders are at risk of incurring losses. This raises an urgent challenge regarding market outlets for Vietnamese avocados.

In many key cultivation areas in the Central Highlands, the avocado harvest at the end of June is taking place in a bustling atmosphere. However, contrary to the joy of a good harvest, there is widespread concern as farm-gate prices have dropped sharply. According to reports, the price of 034 avocados has fallen to around 5,000–7,000 VND per kilogram. In Ho Chi Minh City, retail prices at markets have also declined significantly, to about 15,000–25,000 VND per kilogram.

Ms. Nguyen Thi Diep is a trader specializing in Vietnamese avocados in Krong No Commune, Dak Lak. She said that avocado prices this year have fallen sharply compared to previous years. Currently, grade-1 avocados are only around 7,000 VND per kilogram. Mid-grade fruit ranges from 5,000–6,000 VND per kilogram, while lower-quality fruit is only about 3,000–4,000 VND per kilogram. According to her, this price level is only about half of last year’s and far lower than in previous periods.

Vietnamese avocados

Previously, the 034 avocado variety was a high-value fruit of Vietnamese avocados. At times, the farm-gate prices reached 50,000–70,000 VND per kilogram. When supply was scarce, the price even exceeded 100,000 VND per kilogram. However, this year’s situation is completely opposite. Avocado trees have produced a bumper crop with higher yields. In addition, cultivation areas have expanded rapidly after several years of high prices. As a result, supply has increased significantly, leading to an oversupply in the market.

For growers, avocado prices need to reach at least 7,000–8,000 VND per kilogram just to cover production costs. To make a profit, prices must be around 10,000–12,000 VND per kilogram or higher. At current price levels, many farmers are barely breaking even and even suffering heavy losses. As a result, some households have begun cutting down avocado trees to switch to other crops with more stable economic returns.

This pressure is not only borne by farmers but also directly affects traders. On average, Ms. Diep purchases about 1.8–2 tons of avocados per day. With additional labor, this can reach around 3 tons. She said that business this year has been very difficult. When prices fall too low, many growers hesitate to sell. Meanwhile, Vietnamese avocados are highly perishable and cannot keep for long like coffee or pepper.

If they are not sold in time, farmers have no choice but to discard them or use them as animal feed. Meanwhile, traders must also bear additional costs such as harvesting labor (about 1,000–1,500 VND per kilogram), transportation, sorting, and post-harvest losses. As a result, the sharp decline in avocado prices has created a vicious cycle of difficulties across the entire supply chain. This puts both farmers and traders in a difficult position.

Frozen avocados from Vietnam

In major consumption markets such as Ho Chi Minh City, 034 avocados are now more widely available than ever. Ms. Le Thi Hoai is a fruit vendor at Do Doc Market in An Khanh Ward. She said that at the beginning of the season, 034 avocados were worth at over 50,000 VND per kilogram. However, they have now dropped to around 20,000–25,000 VND per kilogram, with some even as low as 15,000 VND per kilogram. In previous years, this variety once reached 60,000–70,000 VND per kilogram.

According to Ms. Hoai, despite the sharp price decline, demand has not surged as expected. Consumers are currently more cautious with spending. One reason is that avocados face direct competition from many other summer fruits such as durian, rambutan, mangosteen, and plums. These fruits have also seen price drops of 30–50% compared to the same period last year. This gives consumers a wider range of affordable choices.

Mr. Ngo Van Thanh is a customer in Binh Trung Ward, Ho Chi Minh City. He shared that his family regularly buys avocados to make smoothies and refreshing dishes. He felt surprised that avocado prices this year are significantly cheaper than before, making shopping more affordable. However, he also noted that due to the abundance of attractive summer fruits at reasonable prices, his family tends to buy a variety of fruits instead of focusing solely on Vietnamese avocados.

To improve the situation, experts and policymakers believe it is necessary to reconsider production zoning and planning. In reality, 034 avocados are repeating a familiar cycle seen in many Vietnamese agricultural products. When prices rise, farmers massively expand cultivation areas, leading to oversupply when harvests occur simultaneously. This spontaneous development needs to better control through more realistic and effective planning.

Vietnamese avocado tree

In addition to zoning, promoting deep processing technology is a key factor in increasing avocado value. Instead of relying solely on fresh fruit sales, Vietnamese avocado businesses should focus on developing processed avocado products. These include avocado powder, avocado oil, and packaged foods, which have a longer shelf life and are easier to preserve. Product diversification not only extends shelf life but also helps reduce supply pressure during peak harvest periods.

At the same time, expanding consumption through modern distribution channels and e-commerce platforms is also an important solution. Currently, 034 avocados are widely present on social media at very low prices, showing significant potential for online market access. If production control, deep processing investment, and export expansion are effectively combined, Vietnam’s avocado industry could break out of the recurring “bumper crop, price crash” cycle.

In the future, to turn avocados into a high-value specialty crop with sustainable development, farmers need to strengthen linkages with enterprises that provide product purchasing contracts. A synchronized system—from standardized cultivation practices and production planning to branding and promotion—will be a key factor. As the agricultural value chain becomes more integrated and professionally operated, the sector will become more stable in the long term. As a result, farmers’ concerns about price crashes will gradually be replaced by greater confidence.