An Australian mango variety grown in Vietnam has seen prices plummet by 80% this year, threatening to cause farmers big losses.

Vo Xuan Hien, 60, a mango farmer in the central province of Khanh Hoa, is leaving tons of ripe mangoes unharvested since prices have fallen to VND5,000–8,000 (20-30 U.S. cents) per kilogram from VND30,000 a year ago.

He used to earn VND400 million a year and a 50% profit, but this year he only hopes to break even.

"In my eight years of growing mango, this is the first time I am experiencing both a poor harvest and low prices," he said.

Cam Lam District, where his orchard is situated, has around 7,000 hectares of mango, including 4,000 ha of the Australian variety, which has been grown in Vietnam since 2003.

Thousands of tons of the fruit are set to rot in the district in the next two weeks if they are not harvested and sold in time.

The reason for the plummeting prices is a steep fall in demand from China, traditionally the biggest buyer of mango from the district.

Its vice chairman, Huynh Uy Vien, said in recent years China has been expanding its mango output and therefore has less demand for imports, which is severely affecting the district’s farmers.

Most mangoes are now sold domestically or processed into products like dried mango and juice, he said.

"Up to 1,800 tons of mango ready for harvest have not been sold. They are now priced even lower than their cost of production."

His office is working with supermarkets and retail chains to boost domestic consumption.

But some farmers have already suffered from the price drop.

Thao, a local farmer, has seen prices falling rapidly in the last four weeks, and she expects to lose VND100 million this season.

"Ripe mangoes are falling, and traders are paying dirt cheap prices."

Dang The Thuyen, CEO of local processing company Camlamonline, said a majority of the fruits are not of top quality due to unfavorable weather.

He has been buying 100 tons this month to make dried mango. "We plan to buy more to help farmers recoup some of their investments."

Source: VnExpress