Dragon Fruit – Market Analysis

• Global Production

• Competition

• Markets

Dragon Fruit in South Africa -

Considerations

Vietnam• Mainly White Flesh Pitaya (+/- 95%) and some conversion to

Red Flesh (5%+)

• Some Purple Pink Pitaya, but mainly still in breeding phase

Industry Stats:

10,000 - 20,000 hectares

150,000 - 900,000 tonnes

• Markets: Europe, Canada, Singapore, Indonesia, China, Japan, Thailand, Malaysia, etc.

• China / Thailand are the main markets. Access to Taiwan was lost.

• Dragon fruit makes up 60% of all fruit exports from Vietnam to China.

Other Production areas in Asia

• Malaysia

• Thailand

Ecuador30 October 2014

• “… although Thailand, Vietnam, the Philippines and parts of southern

China already produced red-skinned dragon fruit, the regions

generally did not grow the variety commonly found in Ecuador.

• “The variety that Ecuador produces is the yellow-skinned dragon fruit,

which has a sweeter and juicier flesh, and would fare very well in

China where the is great demand for new products”

Ecuador

• “Pitaya production is very new for Ecuador. Just in the

last three or four years we’ve reached export quality,” he

said, adding 75% of the volume was traded

domestically.”

• Yellow Pitaya

2015 – 1,000 ton

2016 – 1,200 ton• 400 hectares, grow to 600 hectares by 2018

• Competition from Colombia / Far East production regions

Ecuador

13 April 2016

Ecuador7th April 2016

• 60 day comment period for access of Pitaya to the

US, using a systems approach

Colombia (Aug 2015)

• Yellow (Sweet) Pitaya

• Airfreight programmes

• 46 ̊C heat treatment for 3 hours – Fruit Fly Protocol for South Korea and Japan, EU not necessary. Access not approved yet to US.

• Harvested green / yellow

on arrival

• Competition from Ecuador

and Vietnam

• 2 ‘high’ seasons

Feb – April

August - October

Colombia

24th August 2015

Israel

9th June 2016

Israel

• “….is unconcerned about competition in Europe and North America from Vietnam, confident that Israel’s pitaya varieties which resulted from extensive breeding programs will be no match. There is no comparison between our pitaya and the dragon fruit that comes from Vietnam,”

• 2 ‘high’ seasons

July – Dec

Dec – April

European Feedback

UK (Total Market)

• 50 ton for 2014/2015 week ending 26 April

• Lower volume in 2015/2016

Holland (WM)

• “yellow nice, red purely for decoration”

• Speciality item traded in small volumes

France (Comexa)

• Niche outlets, Comexa handles 1 ton p/week

TotalDragonFruit 52w/e26Apr15

Value(£000s) 478

Volume(000kgs) 50

Vietnam (European and Chinese Markets)

• “demand in Europe has not increased in the last 2 years and

we are not very satisfied. Europe is also a distant market

and Dragon Fruit has a limited shelf life, which, together with

other factors, restricts the capacity to export.”

• Demand in China down Vietnam: Dragon fruit exporters hope for

recovery of Chinese market

In recent months, dragon Fruit exporters in Vietnam have been going through a quieter time, but now they are seeing things pick up because the Chinese New Year is

just around the corner, and this is boosting demand. In any case, Tony Tran, Sales Executive of Cao Thanh Phat Import and Export Co., Ltd, and Ly Thanh Thao, of

Hoang Hau Dragon Fruit Farm Co. Ltd, assure that “compared with last year, demand is not much higher.”

In fact, for the former it “has decreased. Last year, we exported to the EU, Canada and Asia, but now there is little export to China,” states Mr Tran. Furthermore, Mr Tran

also states that, due to this fall in demand, rates are also low. In this regard, Ly Thanh Thao affirms that “the market price now is lower than last year. The reason for this

is the fruit production having increased by 15%, while demand has dropped, so the market price has to go down.”

In any case, both companies are still making weekly shipments to numerous other destinations, which in Cao Thanh Phat’s case include “the U.S., Canada, Singapore,

Indonesia, and Qatar.” In global terms, the representative of Hoang Hau Dragon Fruit Farm assures that “our export volume at this time increases by about 20%.” As

regards prices, both entrepreneurs explain that “different markets have different specifications and transportation costs, so the price per box will vary.”

While Cao Thanh Phat is also exploring the possibility of entering Dubai and India, both companies have their hopes set on the recovery of the Chinese market. As Ly

Thanh Thao puts it, “our main market so far is Europe, but demand in this market has not increased compared with the last 2 years and we are not very satisfied. Europe

is also a distant market and Dragon Fruit has a limited shelf life, which, together with other factors, restricts the capacity to export.”

22Jan2016(FreshPlaza)

Vietnam (Food Safety)

South African - Dragon Fruit

ConsiderationsPro

• Closer to the European Market than Asian

Production

• Food Safety / Supply Security / Accreditations

• Differentiation through Product Offer (Quality /

Brand)

Con

• Far East is currently main consumption area,

market access takes time, stiff local competition

• Perception on Pitaya placement in the European

market by supermarkets / consumers

Market Access• Systems Approach

• Vapour Heat Treatment

• Irradiation

A familiar story …

West Indian / Greenskins Hass

THANK

YOU