Vietnamese rambutan was officially granted access to the US market last week, but exporters have so far been prevented from making their maiden shipments by stiff competition from suppliers that are much closer to the market.
Vietnam, which is able to produce rambutan year-round, is currently in peak production, so prices are at an all-year low, according to Mai Xuan Thin, export director of major shipper Red Dragon Co, but seemingly not low enough.
“Our CNF prices to LA are currently around US$6.8 per kg, but the rambutan from Mexico and Guatemala can be trucked to California for a landed price of US$3.50-4 per kg, while the CNF cost of air shipments to LAX from Guatemala is around US$6 per kg,” he told Fruitnet.com.
Hobbling Vietnam’s ability to compete on price are the high airfreight costs from the South East Asian country, as its rambutan can only be shipped by air, not by sea, according to Mr Thin. The quarantine protocol for Vietnamese rambutan to enter the US, like the one for the country’s dragon fruit, requires irradiation treatment, and this further bumps up costs. “The irradiation costs for fruit exports to the US are high,” he states.
Once Guatemala’s season finishes in October, Hawaii will come on stream, with supplies that are likely to last through December, he says. Further challenges also loom on the horizon, with the possibility that Thailand and Malaysia could gain access to the US market for their rambutan in September.
Nevertheless, Vietnam has some key factors in its favour, not least the capacity to supply rambutan year-round. “We’ve also got GlobalGAP accredited rambutan production in Vietnam, so procuring the product is not an issue,” says Mr Thin.
Indeed, the company is closely tracking the US rambutan market with a view to securing a toehold as soon as the opportunity arises. “We’re working with our US client and we may able to do a trial shipment soon, because all concerned parties and the press in Vietnam are eagerly anticipating the first shipment,” says Mr Thin. “We can maybe confirm our first order next week, as the CNF price should be around US$6.50-6.80 per kg.'
