Dragon Fruit Market Analysis

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1 Dragon Fruit Market Analysis

2 Global Production Competition Markets Dragon Fruit in South Africa - Considerations

3 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 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.

4 Other Production areas in Asia Malaysia Thailand

5 Ecuador 30 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

6 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 ,000 ton ,200 ton 400 hectares, grow to 600 hectares by 2018 Competition from Colombia / Far East production regions

7 Ecuador 13 April 2016

8 Ecuador 7th April day comment period for access of Pitaya to the US, using a systems approach

9 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

10 Colombia 24 th August 2015

11 Israel 9th June 2016

12 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

13 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) Total Dragon Fruit 52 w/e 26 Apr 15 Value ( 000s) 478 Volume (000kgs) 50 Niche outlets, Comexa handles 1 ton p/week

14 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. 22 Jan 2016 (Fresh Plaza) 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.

15 Vietnam (Food Safety)

16 South African - Dragon Fruit Considerations Pro 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

17 Market Access Systems Approach Vapour Heat Treatment Irradiation

18 A familiar story West Indian / Greenskins Hass

19 THANK YOU

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