Phayao longan farmers suffering extra costs


PHAYAO, 29 July 2012  – Mr. Narate Pheeparkpro, head of the Provincial Agricultural Extension Office has made known the current situation of longan cultivation in the province. He stated that this year, the amount of longan to be put onto the market will total no less than 29,000 tons, which are larger than last year. Last year’s output was only 15,000 tons. 

As a consequence, the per kilogram price of grade AA longan in last year’s produce rose to 21 to 28 THB. However, this year’s initial season prices have been fairly good with a kilo of grade AA longan staying between 22 and 24 THB. From July onwards, 80% of the longan produce will be supplied to the market. These larger yields have directly impacted longan prices, as there are additional costs in the increased employment of longan pickers and higher minimum wage. The fact leaves a net profit of only 300 THB per day.

The difficulties that have resulted have been alleviated by selling the longan to foreign companies, which require standardized packaging and quality control of products in accordance with customer requirements. However, growers still suffer due to delayed payment from foreign buyers.