"The problems are due to low export prices, very expensive transport fees, and some other factors that make it impossible for companies to turn a profit," said Nguyen Quang Minh, director of Vietnam's Department of Plant Protection.

The dragon fruit exports were heralded in the Vietnamese press when exporters received approval from US Department of Agriculture inspectors in July.

Only one Vietnamese fruit processor, the Son Son Company, was approved by the inspectors to irradiate fruit to meet US hygiene standards.

But the company's irradiation machine is reportedly broken, and it is not clear when it will be repaired.

Tran Ngoc Hiep, director of Queen Dragon Company, said the company had ceased exports to the US after shipping its first container of dragon fruit.

Hiep said dragon fruit last 40 to 45 days after picking. It currently takes 5 to 7 days to pick, irradiate, and pack the fruit and 20 days to ship them to the US, leaving only 10 days in stores.

As a result, US buyers have dropped their price from 4.5 dollars to under 3 dollars per kilogram, leaving almost no profit.

"We are very tired of this export, so there's no point doing it," Hiep said.

Vietnamese dragon fruit exporters said they were unable to compete with Thai exporters, which have lower shipping costs and more rapid transit times. Almost no ultra-large container ships dock in Vietnam, and exporters must ship via transshipment ports such as Singapore and Hong Kong.

The newspaper Vietnam Economy reported that Thai dragon fruit exporters also benefit from subsidies for sending produce via air freight, but Thai officials could not confirm this.

Ngoc Nguyen Van Ky, general secretary of the Vietnam Fruit Association, said it was unclear how to improve transportation to allow Vietnamese producers to compete.

"Vietnamese companies have been thinking about the high transportation fees, but there are no solutions available right now," Ky said. "We are collecting their ideas to submit to the government, so it can consider helping them."

Deutsche Presse Agentur - March 5, 2009