According to Mr. Natakrit Eamskul, CEO of PTF, this year's longan crop is expected to surpass last year's yields due to ideal weather conditions — a combination of steady rainfall and an extended cool season. But the resulting surplus has contributed to downward pressure on prices.
Mr. Natakrit outlined four main factors behind the price decline:
- Global Economic Slowdown: Weakened consumer spending and deflation in major importing countries have led to a 15-20% drop in international fruit prices.
- Tighter Credit Conditions: Stricter lending policies in both China and Thailand have constrained the cash flow of importers and exporters, limiting their purchasing power and exacerbating oversupply issues.
- Labor Shortages: A lack of migrant labor has delayed harvesting, particularly in northern provinces, prompting many growers to shift toward dried longan production, which fetches lower prices.
- Weak Demand for Lower-Grade Fruit: Traditionally strong markets for Grade B and C longan—such as Cambodia, Vietnam, and Malaysia—have been affected by cross-border trade challenges, which in turn impact overall pricing.
Despite these challenges, PTF remains confident about the prospects for high-quality longan. "There is still strong international demand for premium grades (A and AA), and we are seeing a growing price gap between these and lower-grade fruit," said Mr. Natakrit. "This highlights the need for farmers to focus on improving quality to stay competitive."
In addition to fresh fruit exports, PTF is exploring opportunities in frozen peeled longan, which the company believes could appeal to younger consumers and the expanding market for fruit-based beverages.
Last year, PTF partnered with government agencies to export early-season longan to China, Indonesia, and India, helping to balance supply and support prices. The company plans to continue these efforts this season to prevent oversupply during the peak harvest and protect farmer incomes.
Looking ahead, PTF is urging the government and agricultural stakeholders to address two key issues:
- Climate Adaptation: Higher rainfall increases the risk of pests and fungal infections. Farmers need better access to rain-resistant agrochemicals and training in disease prevention.
- Labor Flexibility: More responsive labor import policies are needed, especially during peak harvest months in key producing areas like Chanthaburi, to mitigate workforce shortages.
According to the Department of Internal Trade, Thailand's longan harvest is projected to reach over 740,000 tons this year. Chiang Mai province alone has released approximately 22,400 tons (about 8% of its total), primarily from districts including Chom Thong, Doi Lo, Mae Wang, San Pa Tong, Hot, and Doi Tao.
As international demand gradually picks up, industry experts expect longan prices to stabilize in the coming weeks.
