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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”

22-23 September 2020, Taichung, Taiwan

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Dragon Fruit Value Chain for Global Markets

Table of content
Dragon Fruit Workshop Program ............................................................................... 3
S1-1: Exportation of Vietnamese Dragon Fruit: Potentials and Challenges in
the Next Decade ............................................................................................... 7
S1-2: Dragon Fruit Exportation Practices, Challenges and Country
Experiences: Malaysia .................................................................................... 18
S1-3: Dragon Fruit Industry in Taiwan: Challenges and Response ........................... 32
S2-1: Quality Standards and Quarantine Inspection for International Markets
– Vietnam Experience ..................................................................................... 45
S2-2: Establishment of the GLOBALG.A.P. System for Pitaya in Taiwan ................... 46
S2-3: Quarantine Requirements for Importation and Exportation of Dragon
Fruits in Taiwan ............................................................................................... 50
S3-1: Consumer Perceptions and Preferences for Fruit: Opportunities for
Dragon Fruits .................................................................................................. 55
S3-2: Anti-Obesity Effect of Red Pitaya (Hylocerus polyrhizus) in High Fat Diet
Fed SD Rats ..................................................................................................... 61
S3-3: Consumer Preference and Purchase Behavior for Dragon Fruit in the
Philippines ...................................................................................................... 69
S4-1: Promotion of Agricultural Products via Cross-Border E-Commerce –
Wonderfulfood Experiences ........................................................................... 82
S4-2: Public Private Partnership in Agriculture: The Mitagri’s Perspectives ............ 86
S4-3: The Role of Stakeholders and Its Relationship in the Export-Oriented
Dragon Fruit Value Chain in Vietnam ............................................................. 92

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Dragon Fruit Workshop Program

22 September 2020
GMT+8 Topics Presenters

08:30 – Onsite: registration


09:00
Online: login WebEx Meeting
Room

09:00 – Introduction of the live video- Emcee: Mr. Ronald Mangubat,


09:10 based workshop and IT related Information Officer, Food and Technology
matters Center for the Asian and Pacific Region
(FFTC)

09:10 – Opening Dr. Su-San Chang, Director, FFTC


09:40
• Opening/ welcoming remarks: Dr. Hsueh-Shih Lin, Director General,
Taiwan Agricultural Research institute
• Introduction of guests
Dr. Fuh-Sheng Shieu, President, National
Chung Hsing University, Taiwan

Dr. Yi-Fang Hsiao, Deputy Director


General, Dep. of International
Organizations, Ministry of Foreign Affairs

09:40 – Break
10:00

Thematic sessions

10:00 – Session 1: Dragon fruit export S1-1: Dr. Nguyen Hong Son, Director
10:45 and import – practices, General, Southern Fruit Research Institute
challenges, and country (SOFRI), and Vietnam Academy of
experiences Agricultural Sciences (VAAS), Hanoi,
Vietnam

S1-2: Dr. Johari Bin Sarip, Director,


S1-1 Vietnam Horticulture Research Centre, Malaysian
S1-2 Malaysia Agricultural Research and Development
Institute (MARDI), Malaysia
S1-3 Taiwan
S1-3: Dr. Wen-Li Lee, Director, Fengshan
Tropical Horticultural Experiment Branch,
TARI, Taiwan

10:45 – Session 1 - Panel discussion S1 Moderator:


11:15
Dr. Bob Fullerton, Principal Scientist,
international cooperation development,

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

The New Zealand Institute for Plant and


Food Research Limited, New Zealand

11:15 – Break
11:30

11:30 – Session 2: Good agricultural S2-1: Dr. Nguyen Van Hoa, Deputy
12:15 practices, quality standards and Director General, Southern Fruit Research
quarantine inspection for Institute (SOFRI), Tiền Giang, Vietnam
international markets
S2-2: Dr. Yi-Lu Jiang, Assistant Professor,
S2-1: G.A.P. quality standards and Department of Horticulture, National
quarantine inspection for Chiayi University, Chiayi, Taiwan
international markets - Vietnam
experience S2-3: Ms. Shih-Tsai Yang, Associate
Specialist, Bureau of Animal and Plant
S2-2: Establishment of the Global Health Inspection and Quarantine, Council
G.A.P. system for dragon fruit of Agriculture, Taiwan
production in Taiwan

S2-3: Quarantine requirements for


the importation and exportation of
dragon fruits in Taiwan

12:15 – Session 2 - Panel discussion S2 Moderator:


12:45
Dr. Su-San Chang, Director, Food and
Fertilizer Technology Center for the Asia
and Pacific Region

12:45 – Break (lunch)


13:45

13:45 – Session 3: Nutritional and S3-1: Dr. Roger Harker, Head of Sensory
14:30 functional traits, value addition, Science, The New Zealand Institute for
processing properties, and Plant and Food Research Limited, New
consumer preferences Zealand

S3-1: Consumer perceptions and S3-2: Dr. Chi-Yu Yang, Chief, Division of
preferences for fruit: opportunities Animal Technology, Animal Technology
for dragon fruit Laboratories, Agricultural Technology
Research Institute, Miaoli, Taiwan
S3-2: Evaluation of functional
properties of dragon fruits S3-3: Dr. Dormita R. del Carmen, University
Researcher, Postharvest Horticulture
S3-3: Consumer preference for Training and Research Center, University of
fresh dragon fruits in the the Philippines Los Banos, Philippines
Philippines

14:30 – Session 3 - Panel discussion S3 Moderator:


15:00
Dr. Lee-Yan Sheen, Distinguished Professor
and Director of Center for Food and
Biomolecules, Institute Food Science and

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Technology, National Taiwan university,


Taiwan

15:00 – Break
15:15

15:15 – Session 4: Successful stories, and S4-1: Ms. Maggie Chen, CEO, The
16:00 public and private partnership Wonderfulfood, Taipei, Taiwan

S4-1: Promoting agricultural S4-2: Dr. Chung-Hsiu Hung, Chair, Mitagri


products via cross-border e- Co., Ltd, Taipei, Taiwan
commerce - Wonderfulfood
experience S4-3: Dr. Ngo Duc Minh, Science officer,
Department of Science and International
S4-2: Public Private Partnership in Cooperation, Vietnam Academy of
Agriculture - The Mitagri’s Agricultural Sciences (VAAS), Hanoi,
Perspectives Vietnam

S4-3: Successful stories and


cooperation between
governments and private sectors
in Vietnam

16:00 – Session 4 - Panel discussion S4 Moderator:


16:30
Dr. Li-Fen Lei, Professor, Chair, Department
of Agricultural Economics, National Taiwan
University, Taipei, Taiwan

16:30 – Day’s wrap up and closing Dr. Susan Chang, Director, FFTC
17:00

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

23 September 2020
GMT+8 Topics Presenters

0800 – Onsite: conference room, 10th


08:30 floor (the same workshop venue)

Online: joining WebEx Meeting


Room

08:30 – DFNet Project Steering DFNet SCM members


10:30 Committee Meeting (close
session)

10:30 – Break
11:00

11:00 – Video presentation: From Presenters:


11:30 production to consumption - the
missing links Dr. Wen-Li Lee, Director, Fengshan Tropical
Horticultural Experiment Branch, TARI,
Q and A (questions from Taiwan
audience onsite and online)
Ms. Bi-Chuan Liu, Breeder, Fengshan
Tropical Horticultural Experiment Branch,
TARI, Taiwan

Mr. Chao-Ru Hong, Ru Dragon Fruit


Orchard, Wandan, Pingtung, Taiwan

Mr. Ming-Shu Hsieh, Pin-Li Orchard, GG.A.P.


certified, Nanxi, Tainan

Moderator:

Dr. Ray-Yu Yang, Food System and Nutrition


Specialist, FFTC

11:30 – Video presentation: Value Presenters:


12:00 addition program
Dr. Yuhsin Chen, Head, Crop Improvement,
Q and A (questions from Taichung DARES
audience onsite and online)
Ms. Peichun Jen, Assistant Researcher, Crop
improvement and food processing,
Taichung, DARES

Moderator:

Dr. Ray-Yu Yang, Food System and Nutrition


Specialist, FFTC

12:00 – Wrap up, conclusion and Dr. Su-San Chang, Director, FFTC
12:30 suggestions

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

S1-1: Exportation of Vietnamese Dragon Fruit: Potentials and


Challenges in the Next Decade

Nguyen Hong Son1,2, Ngo Duc Minh1, Tran Thi Oanh Yen2

1Vietnam Academy of Agricultural Sciences (VAAS), Vietnam


2Southern Horticulture Research Institute (SOFRI), Vietnam

E-mail: nguyenhongson1966@gmail.com

ABSTRACT

Being a non-traditional fruit crop of Vietnam, dragon fruit was not grown for
commercial purposes in the country until the late 1980s. With rapid expansion in
production, by the late 1990s more than 5,220ha was committed to dragon fruit and
Vietnam was the only ASEAN member state that farmed it on a commercial scale. This
growth particularly accelerated in the last decade with crop areas and production
having more than tripled (13,400 ha in 2000 to 54,000 ha in 2019) and (282,000 tons
to 1,016,773 tons of product). Vietnam became the world-leader in production and
export. Dragon fruit has always been the largest product category among Vietnam’s
fruit and vegetable (F&V) exports. Export turnover in 2018 reached US$1.1 billion,
representing a dramatic annual growth rate of 104 percent since 2010. Both export
volume and sales have steadily grown and export turnover has rocketed 20-fold in the
last eight years. The opportunities of Vietnam dragon fruits include the early paid
attention to the breeding and technical research leading to high quality variety and
productivity as well as competitive price easily accepted by the market. However,
Vietnam still faces challenges in dragon fruit exportation. Firstly, Vietnam’s dragon fruit
business is under pressure to improve quality when stricter quality requirements,
technical regulations and inspections are rising in most key international markets,
including China. The second is recent fast-expanding area of growing dragon fruit in
China, India and other countries in Central and South America and Asia. Other
challenges may come from limitation of existing quality infrastructure (testing,
certification services) and farming practices management.

Key words: dragon fruit, Vietnam, quality, export

INTRODUCTION

Over the past 30 years, Vietnam's agricultural sector achieved explosive growth. The
agriculture (including forestry and fishery) sector of Vietnam contributed 14.6% of the
country’s gross domestic product (GDP) in 2018 but the sector remains an important
industry for the country, with agricultural labor making up 40% of the total labor force

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

(GSO, 2018). The country now ranks among the top global exporters in products as
diverse as shrimp, catfish, coffee, cashews nut, rice, pepper, coffee, fruits. The
international market for local farm products has expanded with a record high export
turnover of US$ 40.02 billion and a positive trade balance of US$ 8.72 billion (GSO,
2018).

Crop production plays a particularly important role in Vietnam's agriculture sector,


with the participation of nearly 70% of the labor force in the agriculture sector. The
economic value of the crop production sub-sector contributed over 71.5% of the
agricultural sector's GDP and nearly 50% of the export value (MARD, 2018). In 2018,
the export turnover of agricultural products in crop production sub-sector reached
US$18.9 billion. Among the eight major export commodities of the whole sector, there
are six commodities from cultivation: fruits and vegetables, coffee, cashew, rice,
rubber, cassava (Vietnam Customs, 2019).

Fruit production in Vietnam in recent years has grown considerably in both scale and
categories. Fruit production has also increased impressively from about 2.1 million
tons in 2001, reaching 10 million tons in 2018 (DCP-MARD, 2019). Many Vietnamese
fruits have a large production volume that ranked in the top 10 of global fruit
production in 2014, such as dragon fruit, lychee, longan, coconut, and passion fruit.
The export value of Vietnamese fruits in recent years has significantly increased in
number and in value. The export value of Vietnam’s fruit industry has grown rapidly
over the last 2 decades, from about US$ 56.1 million in 1995, reached to US$ 3.1 billion
in 2018, increased by 50 times as compared with 1995. Although fruit exports have
increased considerably in recent years, total export value remains modest and is
disproportionate to the true potential of the fruit sector as fruit export just accounts
for 20% of total fruit production (MARD, 2019).

Dragon fruit was introduced into Vietnam by the French more than 100 years ago, and
since then, dragon fruit production has expanded rapidly in Vietnam especially during
the 1990s. The opportunities of Vietnam dragon fruits include the early paid attention
to the breeding and technical research leading to high quality variety and productivity
as well as competitive price that is easily accepted by the market. Vietnam has now
become the world-leader in dragon fruit production and export during the last recent
years. Dragon fruit accounts for 30% of Vietnam’s fruits and vegetables export sales in
2018. Both export volume and sales have steadily grown and export turnover has
rocketed 20-fold in the last eight years.

Dragon fruit production overview

Being a non-traditional fruit crop of Vietnam, dragon fruit (Hylocereus undulatus, Haw.)
was not grown for commercial purposes in the country until the late 1980s. With rapid
expansion in production, by the late 1990s, more than 5,220ha was committed to
dragon fruit and Vietnam was the only ASEAN member state that farmed it on a
commercial scale. This growth particularly accelerated in the last decade with crop
areas and production having more than tripled (13,400ha to 48,460ha) and (282,000

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

tons to 1,016,773 tons) (see Figure 1?). By 2020, production is projected to reach
1,100,000 tons, with 650,000-900,000 tons earmarked for the international fresh fruit
market, 200,000-250,000 tons for the domestic market and 60,000 tons for processing
(MARD’s Department of Crop Production (DCP, 2019).

Area (000’ ha) Volume (000’MT)

60.0 1,200
1,017
48.5
50.0 44.244.3 1,000
42.0 819 819
40.0 37.2 800 708
624
28.8
30.0 25.2 600 534
23.0 468 481
328
20.0 400
13.415.0 282

10.0 200

0.0 0
09 10 11 12 13 14 15 16 17 18 09 10 11 12 13 14 15 16 17 18

Figure 1. Annual planted area and production of dragon fruit (2009-2018)

Unlike most fruit crops in Vietnam, dragon fruit is characterized by densely


concentrated growing areas with no intercropping. The three largest production
provinces of Binh Thuan, Long An and Tien Giang, located in the south of the country,
account for 90% of the total farming area and 96 % of production volume, followed by
Tay Ninh, Dong Nai and a number of Central Highlands and northern provinces. Dragon
fruit thrives in Vietnam’s different climates and soils, with varying temperature and
rainfall levels. Its ability to adapt to a wide range of environments, including to drought
and high salinity levels, makes it a climate-smart crop. This easy-to-grow plant fits the
cultivation capacity of smallholder farmers, who are well supported by strong national
research and development (R&D) capacity, especially in varieties and production
technologies. Innovative lighting technology to induce off-seasonal blooming,
developed and introduced by the Southern Fruit Research Institute (SOFRI), has
allowed for a prolonged harvest. These aspects have combined to make Vietnam the
world-leader in dragon fruit production. Despite its potential for future sustained
income, the large initial investment per hectare is a significant challenge for farmers,
approximately 10-fold higher than the average income per capita in rural areas in 2017.

Table 1. Area and volume of dragon fruit production in Vietnam (Year: 2015)
Province Cultivation New area Harvest Average Production
area area Yield
(ha) (ha) (ha) (MT/ha) (MT)
Binh Thuan 26,026.4 2,661.8 21,349.0 22.0 469,532.0

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Tien Giang 4,493.9 347.6 3,572.3 26.3 94,008.5


Long An 7,126.5 1,244.2 3,019.3 32.3 97,469.2
Other provinces * 3,517.8 495.0 2,287.1 11.0 25,185.7
Total Vietnam 41,164.6 4,748.6 30,227.7 22.7 686,195.4

Status and future potential of Vietnamese dragon fruit exports

After commercial production started in the late 1980s, Vietnam soon became a world-
leader in dragon fruit supply. Export turnover of dragon fruit in 2018 reached US$1.1
billion (account for 30% of fruits and vegetables export sales), representing a dramatic
annual growth rate of 104 % since 2010. Dragon fruit has always been the largest
product category among Vietnam’s fruits and vegetables exports. This can be
considered a net export, since dragon fruit imports are reportedly negligible (Figure 2).

Value (US$ mil.)

1,200 1,126
1,045
1,000 896

800

600 527

400 289

200 57
0
2010 2014 2015 2016 2017 2018

Figure 2. Vietnam annual exports of dragon fruit (2010-2018)


(Vietnam Customs, 2019)

Vietnamese dragon fruit is currently exported to about 40 countries and territories.


Year-round supply capacity and diverse emerging varieties make the fruit well
accepted by a wide range of foreign markets. Vietnam has the largest market shares in
China, EU, Hong Kong SAR, Thailand and the US. China has constantly been Vietnam's
largest dragon fruit export market, with a dominant share of around 90% of total
export turnover. By tonnage, the international market absorbs an estimated 80 % of
total dragon fruit production volume of Vietnam, of which 70 % goes to China through
the border-trade market channel. The domestic market accounts for up to 20 % and
10 % go to other countries. The dominance and reliance on the Chinese market
represents a big commercial risk for Vietnam, particularly in the context of Chinese
expanding local production and stricter quality and quality control requirements from
2019.

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Table 2. Key export markets for Vietnamese dragon fruit in 2018


Market 2018
Turnover in US$ mil. % share of turnover
China 1,040.672 92.42%
US 30.041 2.67%
Hong Kong SAR 11.614 1.03%
Thailand 10.793 0.96%
EU (including UK until
2018) 6.715 0.60%
Canada 5.240 0.47%
India 4.442 0.39%
Singapore 3.946 0.35%
Japan 2.860 0.25%
UAE 2.203 0.20%
Australia 1.958 0.17%
RoK 1.931 0.17%
Malaysia 1.764 0.16%
(Vietnam Customs, 2018)

Although non-Asian consumers have generally demonstrated little market awareness


of dragon fruit, Vietnam Trade Offices abroad underlined the long-term growth
potential, particularly in new non-Asian markets. Demand is expected to grow in step
with intensified marketing (especially on dragon fruit’s health benefits), production
cost reductions and quality enhancements (such as sweetness). However, the short-
term market forecast was not promising due to increased competition, particularly
from China better serving its domestic market, according to MARD’s Crop Production
Department (CPD) and MOIT’s Asian and African Markets Department. Sales to China
will be unstable, growth in easy-access markets (India and UAE) and strict high-end
markets (EU, Japan, RoK and US) will level-off, while production in competing countries
will accelerate. Therefore, Vietnam’s growth rate is expected to hit some headwinds in
a few years. For international markets, the product portfolio includes fresh whole,
frozen whole, frozen cut, frozen puree and dried slice. Fresh whole product occupied
by approximately 80%. The remaining 20 % was shared by the domestic fresh whole
market, given that domestic market processed sales started from a negligible level.

CHALLENGES FOR VIETNAMESE DRAGON FRUIT EXPORTS

Stricter quality requirements (TBTs) in key export markets, including China

More import controls and higher technical regulations are being imposed by key
destination markets on Vietnamese dragon fruit. Carbendazim, once permitted by
many import countries, has been prohibited as pesticides for dragon fruit and tested
for MRL in shipments. The EU pesticide list is updated every few weeks, with additional
requirements every year. For example, a new requirement in 2019 includes microbial

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

tests. After a few MRL non-compliance reports, pre-shipment inspections of dragon


fruit to the EU increased from 10 to 100 % from December 2018 and 10 % of shipments
are re-checked at the destination. For the same reason, Japan decided to check 30 %
of all fresh dragon fruit shipments from Vietnam from May 2019, rising to 100 % with
violating companies. Markets with limited or no inspection/buyer requirements (China,
India, UAE) remain important for Vietnamese fruit exports, yet will likely follow the
trend of tightened quality controls globally. From 2019, the fluid Chinese border-trade
market is stricter in quality control and traceability, posing a big challenge for
Vietnamese dragon fruit exports.

In January 2019, China’s Customs authorities requested all imports provide traceability
information. The US buys fresh, frozen and dried fruit with Vietnam Production Unit
Code (PUC) and US Irradiation Reporting and Accountability Database System (IRADS)
code. Fresh dragon fruit is subject to irradiation treatment and complicated import
procedures to mitigate Sanitary and Phytosanitary (SPS) and Maximum Residue Level
(MRL) risks. Dried and frozen products must come from a Hazard Analysis Critical
Control Point (HACCP) or Good Manufacture Practice (GMP)-certified factory that is
inspected by the United States Food and Drug Administration (FDA). Hong Kong SAR
imports fresh dragon fruit and requires a health certificate from Vietnam and
microbiological and chemical residue tests post-arrival in Hong Kong SAR. Fresh whole
exports to Thailand must comply with national food, plant quarantine, packaging,
labelling and pesticide control regulations.

Challenging buyer requirements relate to all aspects of quality assurance

International buyers’ requirements include product specifications (size/weight,


consistency, appearance, skin), heavy metals, pesticides and microbial residues. In a
few cases, intense supply frequency, such as 52 weeks per year, adds additional
pressure to production and quality assurance. The EU has the strictest regulations and
standards, while RoK and US have the most robust shipment inspections. Exporters
face a complicated mix of technical regulations, higher-than-law voluntary standards
and strict shipment monitoring. The EU is perceived to be the strictest market in terms
of regulatory and voluntary standards with frequently updated pesticide regulations
and a preference for GlobalGAP. This market does not require a lab test for each
shipment, but exporters often undertake them to minimize risks of MRL violations and
subsequent return/destruction of shipments. In terms of shipment inspections, RoK’s
VHT requirement is complemented by 100 percent checks at treatment facilities by
RoK experts. For the US, the pre-shipment requirement relates to irradiation and
checks on every shipment at factories by US experts. As neither market requires safety
and sustainability certification like GlobalGAP, instead they require a pre-checked and
registered Product Unit Code to be issued for farmers or company farms..

The EU, which buys fresh and frozen fruits, has high and frequently updated pesticide
regulations, with GlobalGAP often requested. Vietnamese dragon fruit must have food
safety certification and is subject to 100% pre-shipment pesticide checks in Vietnam
and 10 % re-checks in the EU. Dragon fruit also sells well in Australia, Japan and the

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

Republic of Korea (RoK) with PUC and vapor heat treatment. Entry to markets such as
India, Malaysia, the Philippines and United Arab Emirates (UAE) require minimal or no
tests nor inspection requirements from buyers.

Quality requirements are country - and buyer-specific:

International buyers must follow national laws of the importing country and or state.
Regulatory technical standards are imposed as floor requirements for imports into a
country and thus are country-specific. In addition, a buyer may enforce additional
requirements, product specifications, technical, social and environmental standards.
These can be referred to as “voluntary standards”. GlobalGAP is an example of a
voluntary standard in the form of a safety and sustainability certificate for farm
production and is often required for EU-bound fruit exports and by some Japan and
US buyers. Although each market has specific quality requirements, the most common
ones for foreign markets - except the Chinese border-trade market are quarantines,
MRLs of toxic matter (heavy metals, pesticide and microbial residues), specifications
for fresh and processed products, and storage temperatures (-180C for frozen fruit).
However, an EU buyer may choose not to request a GlobalGAP certificate, while
American or Japanese buyers may require it. In this case, the quality requirement is
typically buyer-specific.

The recent fast-expanding area of growing dragon fruit in the world

Although there are no official global statistics on dragon fruit production and trade,
internet research and interviews with Vietnam Trade Offices indicated that such fruit
was increasingly being cultivated in other countries (Australia, China, Colombia,
Indonesia, Israel, Mexico, the Philippines and Thailand) and challenging Vietnam’s
dominance. Thailand and Israel are the second and third largest suppliers, respectively
after Vietnam for European markets. In the US, Vietnamese dragon fruit faces fierce
competition from Central and South American suppliers, who capitalize on proximity
and local cultivars, with emerging competition from some US states (California, Florida,
Hawaii, and Texas), which have started to commercially grow the plant. In Asia-Pacific,
Vietnam is a leading supplier to China, accounting for 99 % of its total import volume
in 2016. However, the Hong Kong SAR, ASEAN and other Asian markets have become
increasingly competitive with penetration by Malaysia, Taiwan and Thailand exports.
However, the biggest threat to Vietnamese dragon fruit exports is recent fast-
expanding local production in China. According to MOIT’s Asian and African Markets
Department, China by 2017 had successfully cultivated the crop on 35,555ha with
major production provinces in southern China close to Vietnam, including Guangxi
(10,666ha), Guangdong (8,000ha), Guizhou (8,000ha), Hainan (3,333ha), Yunnan
(2,666ha) and Fujian (1,333ha). Dragon fruit is listed by Hainan and Guangxi as a major
crop to develop in the 13th Five-Year Socio-Economic Development Plan and more
intensive expansion is expected. The Chinese harvest season is from May-November
across provinces, which almost overlaps with Vietnam’s peak harvest season April-
August (see Appendix 6 for harvest times of key growing countries). This trend explains
accelerating challenges for fruit exports to China, as reported by most field survey

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respondents.

Table 3. Harvest time of major dragon fruit growing countries/states


LOCATION JA FE MA AP MA JU JU AU SE OC NO DE
N B R R Y N L G P T V C
CALIFORNIA      
FLORIDA      
HAWAII     
TEXAS      
AUSTRALIA       
ISRAEL         
NICARAGU      
A
TAIWAN          
THAILAND        
CHINA       
VIETNAM *            
(Produce Bluebook, MOIT/ Asian and African Markets Department, IDI with farmers and exporters,
2019)
(*) Vietnam peak season (non-lighting): April to August
Vietnam off season (lighting): September to March

Limitation of existing quality infrastructure (testing, certification services) and


farming practices management

Special treatment for fresh fruit required by Australia, Japan, New Zealand, Republic
of Korea (RoK) and United States (US) represent additional quality and cost issues for
dragon fruit exporters. Most of dragon fruit exporters complained the current
irradiation factory recognized by APHIS for US fresh exports was too small and costly.
VHT capacity was better rated with more licensed service providers and exporters
allowed to set up the service. Irradiation and VHT facilities must obtain a Treatment
Facility Code (TFC) from the Plant Protection Department. In addition, RoK and the US
require special treatment to be monitored by foreign experts, leaving exporters to
incur financial and time costs. Australia, Japan and New Zealand accept monitoring by
Vietnamese experts. PPD technical staffs also visit the VHT factory and check
processing of each consignment in this case.

National-level food laboratories (under relevant ministries) have technical capacities


ranging from “fair” to “good” covering many parameters and VILAS accreditation for
the most important parameters. Key weaknesses relate to implementation of quality
management, differences in validation procedures and parameters covered,
insufficient staff skills and experiences. Although there is high demand for proficiency
testing, the number of providers is limited and that of accredited providers even lower.
The most advanced laboratories currently rely on reference materials, proficiency tests

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The 3rd DFNet Workshop “Dragon Fruit Value Chain for Global Markets”
22-23 September 2020, Taichung, Taiwan

and calibration services from abroad. Dragon fruit producers and exporters often use
lab test services for quality assurance. Samples are tested at the buyers’ request or
voluntarily to monitor the quality and compliance of new farms to ensure
consignments do not violate the export market’s maximum residue limit (MRL).
Domestic labs can only carry out single-agent tests, while foreign-invested labs
undertake multi-agent tests that are more convenient and reliable for customers.
However, the largest constraint for domestic labs is a lower LOD than similar
international services. Interviewed exporters often sent samples for lab tests abroad,
in parallel with using local services. Most interviewed certification bodies offered lab
test services through a separate business unit. Their LOD was high, but more costly
than other lab test services and therefore was used by dragon fruit exporters at buyers’
requests. A large capacity gap remains to provide reliable lab test services at more
reasonable prices for dragon fruit chain actors.

As revealed in the field survey, most interviewed responded fresh fruit and processing
exporters, large cooperatives and public and private QI institutions are interested to
participate in a project aimed at improving the quality of dragon fruit exports.
Exporters and cooperatives particularly mentioned faster, more accurate and
affordable lab test,; transparent services to implement and obtain traceability code for
export markets (China, Republic of Korea, Japan, U.S., Australia and New Zealand),;
and technical support to use effective processes and pesticides agro-chemicals for
disease prevention and treatment and, at the same time, to ensure compliance with
food safety standards. QI institutions showed interest in expanding the business for
dragon fruit producers and exporters, which they mentioned as the most regular
customers from in the fruit sub-sector so far.

Among farm certification schemes, the national VietGAP scheme is the most common
for dragon fruit (30% of production area in Binh Thuan, 4 % in Long An and Tien Giang),
but is not recognized by export markets. Only 3% of the three provinces’ total
production area was certified GlobalGAP. Certification bodies revealed that although
the volume of GlobalGAP services for dragon fruit was the largest among F&V in
Vietnam, it was much smaller than for seafood and other farm products. Cooperatives
and exporters pointed to GlobalGAP as too costly in terms of investments, consultation
and certification fees. From another angle, the lack of effective farm diaries illustrated
the poor attitude and capacity of farmers to comply with good production process and
certification schemes.

CONCLUSION

Dragon fruit is a perfect crop for Vietnamese farmers and exporters, given its
profitability, ease to grow, climate resilience, all-year-round supply capacity, and high
rate of fresh whole fruit qualifying for export. However, Vietnam’s largest and fastest-
growing dragon fruit export sub-sector is facing many challenges. Vietnam is under
pressure to improve quality in compliance with increasing standards and inspections
in most international markets. Buyer quality requirements, plant quarantine and

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inspections are rising in most international markets, specifically high-end markets,


specifically Japan and the EU, and even from China. In addition, competition is rising
in other international markets due to a start of local production in China, Australia, the
US and emerging supply from Thailand, Taiwan, Malaysia, Israel, Central and South
America. Efforts of single exporters such as lab testing samples from farms and
shipments, supporting and selecting farmers based on VIETGAP, GLOBALGAP or own
safe production process as well as performing additional treatment like VHT and
irradiation, do not completely address these safety issues. It requires more than
isolated efforts by single exporters. Good farm management must be exercised by
farmers and closely monitored by exporters and the government.

REFERENCES

Agricultural Marketing Resource Center (2018) Dragon Fruit. Retrieved from:


http://eresources.nlb.gov.sg/infopedia/articles/SIP_768_2005-01-11.html\
Australian Government/ Department of Agriculture and Water Resources (2017) Final
Report for the Review of Biosecurity Import Requirements for Fresh Dragon
Fruit from Vietnam.
Blue Book Services (2019) Dragon Fruit – Produce Blue Book. Retrieved from:
https://www.producebluebook.com/know-your-commodity/dragon-fruit/
Crop Production Department (2019) Current status and solution for development of
Vietnamese fruit production (2015-2018)
Fact. M.R. (2018) Dragon Fruit Powder Market: Forecast, Trend Analysis &
Competition Tracking - Global Review 2018 to 2028. Retrieved from:
https://www.factmr.com/report/3819/dragon-fruit-powder-market
GSO (2019) Socio – economic status in 2018. Retrieved from:
https://www.gso.gov.vn/default.aspx?tabid=621&ItemID=19037
Minh D. Ngo, Son H. Nguyen (2018). Vietnam Agribusines Competitiveness – QI Part:
the Assessment Report (undisclosed version)
Vietnam Customs - Customs Trade Statistics:
https://www.customs.gov.vn/Lists/EnglishStatistics/Default.aspx
Vietnam Trade Office in Sydney (2017) Thị trường thanh long của Úc và các giải pháp
xúc tiến xuất khẩu thanh long của Việt Nam vào thị trường này (in English:
Australian market for dragon fruit and export promotion interventions for
Vietnamese dragon fruit in this market).
World Bank (2019) Quality Infrastructure Assessment for Vietnam – Results and
Recommendations (undisclosed version)
World Bank (WB). (2017). Food Safety Management in Vietnam – Challenges and
Opportunities. Retrieved from:

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http://www.worldbank.org/vi/country/vietnam/publication/food-safety-
riskmanagement-in-vietnam-challenges-and-opportunities

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S1-2: Dragon Fruit Exportation Practices, Challenges and Country


Experiences: Malaysia

Johari Sarip

Malaysian Agriculture Research and Development Institute (MARDI), P.O Box 12301,
50774 Kuala Lumpur, Malaysia

E-mail: joharis@mardi.gov.my

ABSTRACT

Dragon fruit or pitaya, a non-seasonal fruit which is locally known as “buah naga” or
“mata naga” is a nutritious and exotic fruit, although it is a non-indigenous crop, it still
gained an important place in the Malaysian fruit industry. Three species of dragon fruit
are grown in Malaysia viz Hylocereus undatus, H. polyrhizus and Selenicereus
megalanthus. Only two species namely H. undatus and H. polyrhizus grow well in
Malaysia. Both species have red skin color, however it can be distinguished by the
white flesh in H. undatus and red in H. polyrhizus. Dragon fruit produces fruits
throughout the year and is vegetatively propagated through cutting. Annual yield
potential of dragon fruit is estimated around 10 to 12 metric tons (MT) per hectare
(ha). The acreage of planting had increased from 680 ha (2017) to 752.56 ha (2018)
which produced 9,357.70 mt (value of RM 42.6 million or US$ 10.1 million). Dragon
fruit is not listed as a major fruit type due to the small number of production and
exports. Production of dragon fruit in Malaysia is only 0.6% from the total fruit
production and the export market is mainly to Singapore (not more than 2% of the
total exports). Some of the challenges in dragon fruit production are pests and
diseases. In Malaysia, the plants are highly susceptible to several pathogens namely,
bacterial soft rot (Enterobacter cloacae), anthracnose (Colletotrichum spp.), stem rot
(Fusarium spp.), stem canker (Neoscytalidium dimidiatum), stem spots (Curvularia
lunata) and other viral diseases. Good management of cultural practices will lead to
reduce the incidence of pests and diseases. This paper will describe the status of the
production of dragon fruit in Malaysia, including its research and development mainly
on the management of pests and diseases as well as post-harvest handling for local
and export purposes.

Keywords: Dragon fruit, status of production, diseases, R&D, post-harvest

INTRODUCTION

Malaysia is blessed with a tropical climate that generates the suitability of


environment for production of local tropical crops especially fruits. There are 43

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Malaysian varieties of fruit crops and 21 varieties are considered major. These include
durian, banana, papaya, pineapple, jackfruit, rambutan and mangosteen. Dragon fruit
belongs to a minor group or clustered under the group of other fruit crops. Locally
known as ‘buah naga’ or ‘mata naga’, dragon fruit was introduced to Malaysia from
Vietnam 20 years ago and has now gained an important place in the Malaysian fruit
industry.

DRAGON FRUIT VARIETY

Three species of dragon fruit are grown in Malaysia viz Hylocereus undatus, H.
polyrhizus and Selenicereus megalanthus. Only two species namely H. undatus and H.
polyrhizus grow well in Malaysia. Both species have red skin color, however it can be
distinguished by the white flesh in H. undatus and red in H. polyrhizus. Hylocereus
plant has elongated stem with three-winged branches carrying aerial roots, very large
flower and spineless fruits that are usually edible. However, Selenicereus differs from
Hylocereus in terms of its ribbed or winged stems, irregularly occurring aerial roots,
flowers that are very often large and reddish fruits that are covered with cluster of
deciduos spines, bristles and hairs. One of the species of Selenicereus, the S.
megalanthus has its own characteristic which are similar to Hylocereus species for
instance the three-winged stem but with spiny fruits like those of Selenicereus.

The white flesh dragon fruits or Hylocereus undatus has sour and sweet taste. The flesh
inside is translucent white scattered with tiny black seeds. The red flesh pitaya, H.
polyrhizus the most popular species of pitaya in Malaysia is slightly sweeter than the
white-flesh pitaya. This species is very adaptable to the Malaysian condition and grow
well with high fruit yield. Yellow pitaya (Selenicereus megalanthus) is a vine cactus that
needs a trellis system for support. The fruit of this species has better taste compared
to those of Hylocereus. However, there are drawbacks in S. megalanthus for example,
the fruits take longer time to develop, they are small with spine peel and the yield is
low compared to Hylocereus polyrhizus and Hylocereus undatus.

Only two varieties have been registered with the Department of Agriculture (DOA)
Malaysia which are HU1 (Pink Dragon Sunlike) and HU2 (Iguana) (Figure 1) and are
widely planted throughout the nation. Besides that, several other varieties have been
introduced into our country but not registered such as Vietnamese White, Townsend
Pink, Asunta, Cebra, Purple Haze, Maria Rosa, Physical Grapitti, Ax Hybrid and S8 Sugar.

DRAGON FRUIT PRODUCTION IN MALAYSIA

Production of dragon fruit in Malaysia is only 0.6% from the country’s total fruit
production. In 2006 until 2009, there was an increase in the number of growers in
Malaysia that produce dragon fruits due to is high demand and good prices (Zainudin
et al., 2015). This crop also has good return on investment because it is fast yielding
i.e. starts to produce fruits as early as one year after planting. Besides fruits, growers
also make profit in supplying planting materials for new growers and hobbyists by

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offering high price.

Its production reaches highest in 2009 with 15,700 MT compared to 2,500 MT in 2006
with average of 12.5 MT per ha of harvested yield. However, the production of this
fruit decreased steadily starting in 2011 (1,525 ha) and until 2018 only 752.56 ha was
actively produced with 9,357.70 MT (value of RM 42.6 million or US$ 10.1 million)
(Figure2).

a b

Figure 1. Two registered varieties under Malaysian National Listing; a) HU1 (Pink
Dragon Sunlike), b) HU2 (Iguana)

Production (Mt) Hectarage (ha)


18000 2500
15701
16000
2267 2000
14000
12000 1790
176210192 1500
10000 9016 8,577
8000
1526 7943
6,252 6,042 5,475 6,407 1000
6000 5296
963 4,402
4000 813 452 500
563 513 513
2000 451
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Production (mt) Hectarage (Ha)

Figure 2. Dragon fruit production in Malaysia

Source: Department of Agriculture, 2018

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PRODUCTION SYSTEM

Dragon fruit produces fruits throughout the year and is vegetatively propagated
through stem cutting. Its cultivation prefers full sunlight open, whereas the shady
areas are not suitable. Generally, single post system planting is done at 3.3 x 3.3 m
distance which can accommodate 1000 poles per hectare. Martini et al. (2008) found
that dragon fruit plants grown using the pole system showed 17-38% more flower buds,
15-36% more fruits and 24% heavier total fruit weight compared to those of the T bar
trellis and V shape systems, respectively.

The dragon fruit plants are fast growing vines and produce thicker dense of branches
during the initial stage. The lateral buds and branches should be pruned to grow
towards stands. For single plant, 5-6 branches are allowed to grow above the trellis.
All excess branches should be trimmed and should be cleared from the plot (Figure 3).
This can ensure prevention of the disease. Weekly monitoring and control of the
diseases are essential practice to produce healthy plants and balanced canopies.

In terms of yield performance, Zainudin (2007) found that dragon fruits yielded from
5 to 8 tons per ha after second year of planting and increased by 10 – 15 % as the crop
matures. In producing high yield, poor fruit set of 10-20% in dragon fruit was found to
be the main constraint as reported by Realiza et al. (2007). The plant starts yielding
after 12 months after planting. Flowering can be increased with prolonged light
exposure that can increase the flowering rate up to 30%. Fruits will mature 40 -50 days
after pollination. Fruits should be wrapped during development to control fruit fly
attack (Figure 4).

a b

Figure 3. a) too much branching will affect the pests and diseases control program, b)
All diseased and discarded branches should be destroyed and burnt to avoid
pathogen built up.

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a b

Figure 4. a) Prolonged lighting to induce flower production, b) Fruit wrapping to


avoid fruit fly.

PESTS AND DISEASES

This pioneering local dragon fruit farming venture went downhill when disease
targeting the crop struck in late 2009. Like many other fruit crops, dragon fruits are
susceptible to diseases caused by fungi, bacteria and virus which can lead to several
complex diseases. It was reported that stem canker, anthracnose and stem blight are
the three major diseases of dragon fruit in Malaysia

Stem canker was the most destructive disease attacked by dragon fruit in Malaysia and
has been first reported by Mohd et al. (2013b). It was found that the causal agent of
stem canker was Neoscytalidium dimidiatum. The initial symptoms of stem canker
were brown sunken lesion and the lesion became dark brown with age.

Anthracnose is the most common disease that infects dragon fruit in Malaysia and
causes huge losses in quality of the fruits, thus rendering large quantity of dragon fruit
unfit for consumption. At least two species of Colletotrichum were involved in causing
the disease namely C. gloeosporioides and C. truncatum (Mohd et al., 2008; Masyahit
et al., 2009; Suzianti et al., 2014). Both Colletotrichum species produced similar
symptom, which was reddish-brown lesions with chlorotic haloes symptoms.

Stem rot was also recorded as one of the serious diseases of red-fleshed dragon fruit
in Malaysia. Two fungal species of Fusarium were recorded to be involved in causing
the disease namely F. proliferatum (Mohd et al., 2013a) and F. fujikuroi (Mohd et al.,
2017). The disease symptom appeared as circular, brown sunken lesion with orange
sporodochia and white mycelial formation on the lesion surface. The causal pathogen
of stem rot produced dense-cottony, whitish aerial mycelium and purplish pigments

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There were several ways which were applied in Malaysia to prevent and control the
plant pathogenic fungi that caused different diseases on dragon fruit. Chemical control
was commonly and widely applied by farmers to control the diseases. From in vitro
and plant house testing, benomyl and thiabendazole showed the most effective
fungicides against F. proliferatum and F. fujikuroi causing stem rot on dragon fruit
(Mohd, 2014). A study by Masyahit et al. (2009) showed that zero incidence of
anthracnose disease was recorded in nine dragon fruit plantations in Malaysia (Batu
Pahat, Sepang, Marang, Setiu, Batang Merbau, Gua Musang, Merbau Pulas, Gurun and
Mata Ayer) due to good sanitation of farms and application of fungicides to control the
disease.

Besides chemical control, good agricultural practices are very important to be applied
by farmers to prevent the disease infection on pitaya particularly on the proper
pruning technique, selection of disease-free seedlings, soil type and condition,
sanitation and drainage system. Le Bellec et al. (2006) suggested that damage and
entangled stems of dragon fruit should be pruned and this application has been
reported to increase the production of dragon fruit as well as reducing the occurrence
of fungal diseases. Cultural management includes limiting canopy wetness by irrigating
in the morning so plant surfaces can dry quickly throughout the day. It is also advised
to maintain a weed free planting and prompt discarding of diseased plants when
symptoms occur. Controlling insect pests is an integral part of managing the spread of
bacterial diseases. Aphids and mites are common pests that can transmit bacteria and
viruses to healthy plants.

POSTHARVEST HANDLING PRACTICES

In Malaysia, harvesting time of dragon fruit typically begins at 30-35 days after
flowering, when the fruit skin color changes from fully green (Index 1) to the
appearance of light red color between bracts (Index 2). Color index for dragon fruit
maturity is shown in Figure 5. For distant export market, fruits are harvested at Index
2 to 3, whereas for local market, Index 4 to 5 is recommended, whereby the entire skin
turns light red and has favorable eating quality for direct consumption.
Storage life of dragon fruit was reported to be 14 days at 10 °C (RH 90%). The
postharvest life of this fruit is limited mainly by disease, excessive shriveling due water
loss and mechanical injury. Among the postharvest diseases, anthracnose caused by
Collectotrichum gloeosporioides is the most important disease causing massive
economic losses in dragon fruit. During storage duration, the symptoms appear as
reddish-brown lesions on fruit which develop from chlorotic halos. As of 2011, no
postharvest fungicides are approved by EU or US authorities for use on dragon fruit
(Sergio et al., 2011). Mechanical injury leads to development of sunken areas. More
mature fruit are more susceptible to mechanical injury.

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Table 1. Major dragon fruit diseases reported in Malaysia


Stem canker (branch wilt dieback) (Neoscytalidium dimidiatum), 60% incidence (first
report by Mohd et al., 2013)

Anthracnose (C. gloeosporioides and C. truncatum), 52% incidence (Mohd et al., 2008;
Masyahit et al., 2009; Suzianti et al., 2014)

Stem rot (Fusarium spp. except F. solani), 40% incidence (Mohd et al., 2013, 2017)

Recommended fungicides: Mancozeb, Captafol, Propineb, Benomyl, and


Thiabendazole

Commercial postharvest practices in Malaysia generally involve sorting, grading,


cleaning, packaging and precooling prior to distribution. After harvest, fruits will be
sorted out by selecting fruits without any defects, including insect damage, skin
splitting, mechanical damage and decay. Top quality fruits should be well shaped, have

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firm, fleshy and green bracts and firm flesh. Fruits will be gently cleaned from dirt and
will be packed in corrugated fiber board box. Individual fruits will be wrapped with
netting to avoid mechanical damage due to abrasion among the fruits during
transportation. Some producers use LDPE plastic to wrap fruits to reduce water loss.
Dragon fruits are not subjected to any washing and fungicide treatment after harvest
due to the fact that it is sensitive to mold growth under high humidity and no
postharvest fungicides are approved for use on dragon fruit after harvest in Malaysia.

Excessive shriveling during storage as a result of transpiration is another critical


problem that adversely affect the visual quality of dragon fruit. Packing in perforated
plastic bag is a common approach that has been practiced in Malaysia to reduce water
loss and rapid shriveling. However, when fruit are exposed to high relative humidity
environments in plastic bags, they are potentially more susceptible to decay (Shin et
al., 2007). In addition, rising concern with non-renewable and/or non-biodegradable
nature of plastic bags paves the route for the development of greener alternatives,
including edible coating for fruits. EONature, a natural coating formulation developed
by MARDI, has the advantage of being not only being able to reduce water loss, but
could also act as an antifungal agent. It is made from plant oil with the incorporation
of natural essential oils. Hence, it has been tested to be free from fungicides and is
considered to be toxically safe. EONature has been tested on several tropical fruits in
Malaysia including dragon fruit. A study on dragon fruit found that it could reduce
water loss by reducing stomatal aperture, thus reducing transpiration during storage.
Apart from water loss, EONature was reported to reduce anthracnose disease
incidence and severity during storage. As a result, dragon fruit coated with EONature
can be kept up to 21 days at 10ºC compared to only 14 days without any treatment
(Figure 6)

1 2 3 4 5 6 7 8

Figure 5. Maturity color index for dragon fruit harvesting (Index 1-8)

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a b

Figure 6. Physical quality of dragon fruit treated with (a) EONature coating in
comparison with (b) untreated fruit

DOMESTIC MARKETING

In the Malaysian retail market, dragon fruit is often sold as a fresh product. At the farm
level, the growers can either sell directly to agents, private traders, wholesalers or
processors. In normal situation, agents and private traders play a significant role as a
middle man between growers, especially for small-scale farms and industry players. In
certain places, farmers could also sell directly to consumers through mobile markets
or farmers markets or even along the main roads or in front of the farmers’ farms. At
the wholesale level, the dragon fruit generally distributed into conventional retail
markets such as hypermarkets, supermarkets, night/wet markets and small
markets/grocery stores. The wholesalers also act as main players to supply fruits to the
exporters for the international market (Figure 7)

Generally, in the domestic market, there are three types of price levels; ex-farm price,
wholesale price and retail price. The difference between these levels that then can be
considered as the cost of marketing and the margin to the buyers. The ratio of farm to
retail price is the share of the consumer dollar going to the farmers. The wholesale-
farm margin is the difference between the price by the wholesale trader (or the
processor) and the ex-farm or producer price. The wholesale-retail margin is the
difference between the price retail trader pays and the retail price he charges to
consumers (Fatimah et el., 2004). Market price is sensitive due to fluctuations in
supply and demand; increase in demand will increase in price and vice versa. Currently,
dragon fruit is sold at RM 3.50- RM 4.00/kg (US$0.80-0.90) at farm level, RM 4.50/kg
(US$1.10) at wholesale level and RM 5 – RM 6/ kg (US$1.20-1.60) at retail level. The
price may change due to size and grading accordingly. Usually, in the hypermarket,
supermarket or small retail, dragon fruit will sell by weight (kilogram), however in the
wet of farm market, it is selling in a bulk (3 to 4 pieces) priced at RM 10 (Table 2).

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Figure 7. Supply chain of fruits in Malaysia (Source: Fatimah, et al. 2004)

Table 2. Price of dragon fruit in Malaysian domestic market

Ex-farm price Wholesale price Retail price


MYR 3.50 –RM 4.00 /kg MYR 4.50 / kg MYR 5.00 – RM 6.00 /kg
(USD 0.80 - USD 0.90) (USD 1.10) (USD 1.20 – USD 1.50)
*Price may change due to size and grading

EXPORT MARKET

Singapore and Hong Kong are the main traditional export partners for dragon fruit
from Malaysia. In the export trade, dragon fruit is traded under the Harmonization
Standard Code of 081090 – tropical fruits group as ‘pitahaya’. For the past six years,
the export value of dragon fruit showed an increasing trend, about 33% average
growth rate from 2013 to 2018. In 2018, 4256 MT of Malaysian dragon fruit was
exported worth RM13.45 million. Market demand for fruits as whole including dragon
fruits is expected to increase 3% for local and export market by 2025, due to increment
in population and food pattern for more health consumption from fruits and
vegetables among the new generation.

Table 3. Export volume and value of dragon fruit in Malaysia for the past 5 years
2013 2014 2015 2016 2017 2018
(MT) (MYR) (MT) (MYR) (MT) (MYR) (MT) (MYR) (MT) (MYR) (MT) (MYR)

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1071 1.96M 1726 3.69M 2069 5.367M 2302 6.54M 3407 10.39M 4256 13.45M
Note: MT - Metric tonnes; MYR - Malaysian Ringgit; M - million
(Source: Ministry of Agriculture and Agrifood Industry, 2019)

To export dragon fruit from Malaysia, exporters need to be registered with Company
Commission of Malaysia (SSM). They are also required to obtain phytosanitation
certificate from the Department of Agriculture, and register with Federal Agriculture
Marketing Authority (FAMA) to obtain a certificate of conformity and deal with the
Malaysian Quarantine and Inspection Service (MAQIS) to obtain an export permit.
Since the export destination has only been limited to Singapore and Hong Kong, which
do not impose any quarantine requirement, no disinfestation treatment has been
applied in Malaysia. Dragon fruit is recorded as host fruit for Tephritidae fruit flies and
mealybugs (Wall and Khan 2008). Based on studies conducted in other countries, hot
forced air treatments (Hoa et al. 2006), and irradiation (Follett et al. 2007) are suitable
for disinfestation treatments for the export market.

Grades of dragon fruit are determined by quality characteristics including fruits which
must be from the same variety, clean and fresh; uniform in size and maturity; and free
from defects or decay. Fruit sizes are described by Malaysian Standards (MS2201:2008)
as follows:

Table 4. Classification of dragon fruit size based on Malaysian Standard


Size code Unit weight (g)
Red flesh White flesh
XL > 600 >450
L 451-600 351-450
M 301-450 251-350
S 150-300 150-250
(MS2201:2008)

Grading Packaging and Labelling (GPL) regulation

Malaysian exporters need to comply with GPL Regulations in order to export their
produce. GPL regulation is to ensure that agriculture produce are graded, packaged
and labelled before they are marketed (locally export or import). The objectives of GPL
include the following; a) traceability by recorded information; b) food safety and fair
practices; c) dissemination of information; d) standards based on standard
benchmarks; and e) compliances with WTO Agreements and Prevent discriminations.

MyGAP

Exporters need to obtain fruit supply from farms certified with adopted Malaysian
Good Agricultural Practice (MyGAP). In order to be certified with MyGAP, the farm is

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required to operate in an environmentally friendly and sustainable way, and yield


quality products that are safe according to the three main aspects of MyGAP Farm
Accreditation Scheme based on the Malaysian Standard MS 1784: 2005.

Issues and challenges in exportation

Inconsistent supply
Relatively low acreage of dragon fruit in Malaysia has resulted in inconsistent supply
of fruits which some farmers are unable to fulfill in terms of continuous demand from
importing countries. Disease outbreaks that struck in 2009 has caused a significant
decrease in Malaysian dragon fruit production from 15,700 MT in 2009 to 9,357.70 MT
in 2018.

High cost of production


Dragon fruit growing in Malaysia is dominated by small holders which indirectly
resulted in high per unit cost, in turn increase cost of production. There is a need to
empower the agriculture cooperatives or Farmers Organizations with the capability to
operate in larger scale and efficient supply chain management. High cost of production
in Malaysia is also caused by relatively higher labor cost compared to other developing
countries.

High transportation cost (Air freight)


Dragon fruit is a perishable produce which only last for two weeks at 10ºC, therefore
it needs to arrive at its destination as soon as possible. Air freight has been used for
dragon fruit exportation to Hong Kong market as alternative for sea shipment which
takes about 11 days to reach Hong Kong. Nevertheless, high air freight costs has
resulted in higher distribution costs which eventually affects retail prices. For short
distant export market such as Singapore which is accessible via land route, this is not
an issue. In addition, during the Covid-19 pandemic with cross country travel
limitation, a lot of flights were cancelled and postponed, hence creating another
logistic issue.

Price competition with other major producing countries


Consumption of fruits and vegetables is influenced by price, quality, packaging and
availability in the supermarkets. Lower price encourages more consumption, thus
increasing the market share. Malaysia has lower competitiveness in terms of price due
to the abovementioned factors which affect cost of production and transportation,
which in turn leads to higher prices to offer at the consumer level. Physical distance
also plays a significant role in determining prices due to marketing and distribution
costs. While Singapore market is not an issue for Malaysia because it is close to
Malaysia and is accessible through land route, dragon fruits exporters are in a
disadvantaged position for other export destinations. For instance, Vietnam has an
advantage position for Hong Kong markets compared to Malaysia due to the distance
factor.

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CONCLUSION

Dragon fruit has become one of the important exports for Malaysia apart from the
existing local fruits. It has fast return on investment which could raise farmers income
for small and large cultivation. Several measures have been taken to enhance
production, control of pests and diseases outbreaks and improvement of postharvest
handling to ensure quality of dragon fruits throughout the supply chain for the local
and export markets.

REFERENCES

Fatimah, M.A., Alias, R. and Zainalabidin, M. 2004. The fruits industry in Malaysia;
Issues and challenges: Universiti Putra Malaysia Press.
Follett, P.A.. M. Yang, K. Lu. and T. Then. 2007.Irradiation for postharvest control
quarantine insects. Formosan Entomology 27:1 1 5
Hoa. TT., C.J. Clark, B.C. Waddell. and A.D.Woolf 2006. Postharvest quality of dragon
fruit following disinfesting hot air treatments. Postharvest Biol. Technol.41:62
69.
Le Bellec, F., Vaillant, F. and Imbert, E. 2006. Pitahaya (Hylocereus spp.): A new fruit
crop, a market with a future. Fruits, 61(4), 237-250.
Mohd, M.H. 2014. Characterizations, pathogenicity and chemical control of Fusarium
species from stem rot of dragon fruit (Hylocereus polyrhizus) in Malaysia. PhD
thesis, Universiti Sains Malaysia. 264 pp.
Mohd, M.H., B. Salleh, and Z. Latiffah. 2013a. Characterization and pathogenicity of
Fusarium proliferatum causing stem rot of Hylocereus polyrhizus in Malaysia.
Ann. Applied Biol. 163:269-280.
Mohd, M.H., B. Salleh, and Z. Latiffah. 2013b. Identification and molecular
characterizations of Neoscytalidium dimidiatum causing stem canker of red-
fleshed dragon fruit (Hylocereus polyrhizus) in Malaysia. J. Phytopath. 161:841-
849.
Mohd, M.H., I. Nurul Faziha, M.N. Nik Mohd Izham, and Z. Latiffah. 2017. Fusarium
fujikuroi associated with stem rot of red-fleshed dragon fruit (Hylocereus
polyrhizus) in Malaysia. Ann. Applied Biol. 170(3): 434-446.
Mohd, M.H., P.Y. Hew, Z. Maziah, H. Nagao, and B. Salleh. 2008. Aethiology and
symptomatology of anthracnose caused by Colletotrichum gloeosporioides on
dragon fruit (Hylocereus polyrhizus) in Malaysia. In: The Sixth Regional IMT-GT
Uninet Conference, August 28-30, Penang, Malaysia.
Martini, M.Y., Ridzwan A.H., Mahmud, T.M.M., Syed Omar S.R. and Zainudin M. 2008.
Growth, yield and fruit quality of red dragonfruit (Hylocereus polyrhizus) fruit

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as affected by plant support system and intercropping with long bean (Vigna
sinensis). Journal: Food, Agriculture & Environment (JFAE) Online ISSN: 1459-
0263 Year: 2008, Vol. 6, Issue 3&4, pages 305-311. Publisher: WFL.
Masyahit, M., K. Sijam, Y. Awang, and M.G.M. Satar. 2009. The first report of the
occurrence of anthracnose disease caused by Colletotrichum gloeosporioides
(Penz.) Penz. & Sacc. on dragon fruit (Hylocereus spp.) in Peninsular Malaysia.
Amer. J. Applied Sci. 6:902-912.
Realiza, B.R., Abdullah T. and Abdullah N.A.P. 2008. Floral biology, flower initiation
and development of pitaya (Hylocereus polyrhizus) . The National Horticulture
Conf. 13- 15 March 2007, Johore Bahru, Malaysia.
Sérgio Tonetto de FreitasI, Elizabeth Jeanne Mitcham. ci. agric. (Piracicaba, Braz.)
[online]. 2013, vol.70, n.4 [cited 2020-09-10], pp.257-262.
Shin, Y.; Liu, R.H.; Nock, J.F.; Holliday, D.; Watkins, C.B. 2007. Temperature and
relative humidity effects on quality, total ascorbic acid, phenolics and flavonoid
concentrations, and antioxidant activity of strawberry. Postharvest Biology and
Technology 45: 349-357.
Suzianti, I.V., M.A. Intan Sakinah, and Z. Latiffah. 2014. Characterization and
pathogenicity of Colletotrichum truncatum causing stem anthracnose of red-
fleshed dragon fruit (Hylocereus polyrhizus) in Malaysia. J. Phytopath. 163:67–
71.
Wall and Khan, 2008. Postharvest Quality of Dragon Fruit (Hylocereus spp.) after X-
ray Irradiation Quarantine Treatment HortScience 43(7):2115-2119. 2008
Zainudin, M. 2007. Dragon fruits cultivation in Malaysia. International Tropical
FruitNet Technical Bulletin. Issue.No.8.
Zainudin, M. and Ahmad Hafiz B. 2015. Status of dragon fruit production in Malaysia.
Proceeding of Improving Pitaya Production and Marketing Workshop, 13-15
September, Kaohsiung, Taiwan

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S1-3: Dragon Fruit Industry in Taiwan: Challenges and Response

Wen-Li Lee1, Pi-Chuan Liu2 and Li-I Chen3

1Director,Senior Horticulturist and 2Associate Horticulturist, Fengshan Tropical


Horticulture Experiment Branch, Taiwan Agriculture Research Institute, Kaohsiung
City, Taiwan; 3Division Chief of Crop Production Division, Agriculture and Food
Agency, Council of Agriculture, Taiwan.

E-mail: leewenli@fthes-tari.gov.tw

ABSTRACT

Dragon fruit (Hylocereus spp.) is a popular fruit in Taiwan, and over the past 10 years,
the production area has expanded from 900 to 2,800 ha. Although the quality is more
stable and the white flesh variety is easy to grow, consumers still like red flesh varieties
more because of its sweeter taste and flavor. The most popular varieties of dragon fruit
are 'Vietnam White', 'Mi-Long', 'Da-Hong' and ‘Xiao-Tien-Tien’. In 2019, those varieties
occupied the total land cultivated to dragon fruit at 2,865 hectares with 69,717 tons
of production volume, and with a value of US$ 91,049,000. The major challenges of
the dragon fruit industry in Taiwan is mainly caused by the rapid increase of planting
area and production. Meanwhile, varied fruit quality and high production cost has led
to weak exports. To increase competitiveness, there is a need to improve the fruit
quality and product safety. However, the red fleshed varieties require hand pollination
and varied fruit sizes., The fruit’s easy cracking is also considered as one of its many
weaknesses. Recently, the people involved in the dragon fruit industry is bent on
introducing or breeding a spineless variety with a pleasant flavor, unique flesh color,
suitable size, and has a long shelf life. The industry movers are also planning to set up
quality production clusters; promote organic cultivation and Traceable Agricultural
Products (TAP) system; develop facilities culture technology throughout the supply
chain; with onsite demonstration sessions by Technical Service Groups to increase the
share of high-quality fruits and supply consistency.

Keywords: Dragon Fruit, Production, Quality, Challenge

INTRODUCTION

Dragon fruit is native to tropical America and is produced in Nicaragua (red pitaya),
Columbia (yellow pitaya) and Ecuador (both red and yellow). After hundreds of years,
the dragon fruit has spread to the tropical and subtropical countries including Taiwan
and it has become a potential fruit crop. However, the industry was only begging after
introduction of the white fresh and self-compatible varieties from Vietnam in the
1980s (Yen et. al. 2015) Early on, the dragon fruit’s advantages have already been
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selected established. It has bigger fruit size, higher yield, sweetness, and self-
compatibility and can be harvested a year after it has been planted. Since it is easy to
manage and has high profitability, the planting of dragon fruit expanded quickly and
became an important economic fruit crop in Taiwan. In the past decade, a system of
breeding new variety, shoot management, pest control techniques, bagging, off-
season production and some others of key cultivation techniques was established in
Taiwan (Jiang and Yang, 2016). It kept farmers with stable and great profitability in the
past decade. Although this industry seems prosperous, it is still facing lots of future
challenges.

DRAGON FRUIT INDUSTRY IN TAIWAN

Before 1983, dragon fruit cultivation in Taiwan was mainly considered of the garden
and fun cultivation type, and not for food. In 1999, the planting area was about 380
hectares. In 2003, it had grown to 1044 hectares. The main cultivar at that time was
the white flesh from Vietnam. Due to the immature cultivation technology, the quality
and yield were unstable, with poor fruit quality and has unpleasant grassy taste that
consumers disliked., Because of these reasons, many farmers gave up planting dragon
fruit because the income was not as good as expected. The area under cultivation
dropped sharply from 1,044 hectares to 770 hectares in 2009. Later some varieties
with different flesh color such as 'Jan-Long', 'Xiang-Long', 'Mi-Bao', and 'Da-Hong' were
released and became famous (Liu et. al. 2016). In Taiwan consumers who prefer the
red flesh with sweeter taste made the red pitaya the most popular variety now.
However those red flesh varieties have some weaknesses such as hand pollination
requirements, unstable fruit size and easy fruit cracking. Currently in Taiwan, 20% of
the common varieties belong to white fresh one (H. undatus), and 75 % of them are
red-fleshed (H. sp hybrids), especially, ‘Da Hong’ and ‘Fu Gui Hong’ being the two most
popular varieties in Taiwan which occupied 60 % and 25 % of red fresh pitaya market
share, respectively. In 2019, Pitaya production in Taiwan has developed with acreage
increasing 2,865 ha which increased by 226% compared to the situation in 2011, with
a production volume of 69,717 tons. (Figure 1 and Table 1) and with annual export
volume reaching 110 tons (COA, 2020).

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Figure.1、The production of dragon fruits in Taiwan from 1999-2019

Table 1、The production of dragon fruits in Taiwan from 2011-2019

Cultivated area Yield Production value


Year Unit price (USD)
(ha.) (ton) (1,000 USD)
2011 877.8 20,915 1.33 27,887
2012 979.4 23,550 1.50 35,324
2013 1,191.2 27,654 1.88 52,082
2014 1,675.9 38,965 2.32 90,464
2015 2,032.4 43,631 2.07 90,157
2016 2,490.0 49,108 1.98 95,513
2017 2,846.9 66,126 1.60 105,715
2018 2,753.7 67,023 1.19 79,444
2019 2,864.5 69,717 1.28 89,168

The major production areas are in the central and southern regions with Changhua
County 17%, Nantou County 17.4%, Pingtung County 15%, Tainan City, 12.6%; Chiayi
County 8.7%, Taitung County, 5.8%; and Kaohsiung City, 5.3% (Table 2). The total
production of dragon fruit is approximately 69,717 tons in 2019, mainly for the
domestic market, and a small amount for the export market. The export volume and
value have been steadily increasing, from 0.18 metric tons in 2010 and valued at
US$2,700 to 430 metric tons and US$1,023 thousand in 2019 (Figure 2). The main

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export destination is China, with an export volume of 177.7 metric tons (41.4% of total
exports), followed by Hong Kong with 165 metric tons (38.4%) and Canada (14.6%)
(COA, 2019, Figure 3).

Table 2、Dragon fruit production in by County and city in Taiwan

Cultivated area
Cultivated Harvested area Yield per Yield
County ratio (%)
area (ha.) (ha) hectare (kg) (Ton)

Nantou County 498.85 478.88 24,053 11,518 17.41


Changhua
487.43 485.70 26,268 12,759 17.02
County
Pingtung County 428.96 416.31 26,211 10,912 14.97
Tainan city 360.59 360.11 26,932 9,699 12.59
Chiayi County 249.68 245.26 20,778 5,096 8.72
Taitung county 166.95 166.85 14,615 2,439 5.83
Kaohsiung city 150.34 150.24 29,004 4,357 5.25
Taichung city 131.70 130.78 26,493 3,465 4.60
Yunlin County 120.19 119.96 27,481 3,297 4.20
Miaoli County 66.45 66.45 25,201 1,675 2.32
Hualien County 48.10 44.55 20,546 915 1.68
Yilan County 46.50 44.82 28,341 1,270 1.62
Hsinchu County 38.35 38.02 19,778 752 1.34
Taoyuan city 34.59 29.99 26,096 783 1.21
New Taipei City 9.81 9.47 26,248 249 0.34
Wuhu County 9.71 9.71 19,669 191 0.34
Chiayi City 7.74 7.74 19,601 152 0.27
Jinmen County 4.85 4.85 25,632 124 0.17
Hsinchu City 3.01 3.01 17,089 51 0.11
Taipei City 0.54 0.54 22,404 12 0.02
Keelung City 0.20 0.2 11,920 2 0.01
Total 2,864.54 2,813.44 24,780 69,717 100.00

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Figure.2 Dragon fruit exports and values, 2010-2019

Figure 3. Major dragon fruit exporting countries in 2019

Although Taiwan has a small amount of dragon fruit exports, it also imports dragon

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fruit to supplement the shortage of is domestic market, especially from January to May
during the non-production season. During 2010 and 2015, Taiwan only imported a
small amount of dragon fruit from Malaysia. After October 2016, dragon fruit began
to be imported from Vietnam. The import volume gradually increased and the output
increased. The annual import volume from 2010 to 2019 was 21, 115, 278, 262, 202,
216, 678, 814, 426 and 0 tons. For the domestic market analysis, the Taipei wholesale
market has always been a good source. In 1999, the transaction volume was only 124
tons, and the average kilogram price was US$1.59. Over the next few years, the
average price increased and decreased in number. By 2003, production had reached
2,911 tons, but the price had fallen to US$0.5 per kilogram. The main reason is that
the quality cannot be improved. This trend can be changed after the production
technology and quality-related issues are resolved, and the fruit quality is recognized
by consumers. In 2019, the volume of the Taipei wholesale market reached 11,828
tons, while the unit price remained at $1.29/kg (Figure 4).

Figure4. Dragon fruit in Taipei market comparison in 1999-2019.

According to statistics from the Taipei Wholesale Market in the past five years, the
price of domestic white fresh dragon fruit is relatively stable. Although the supply of
red flesh one has increased to 6.5 times from 2012 to 2019, the price gap between red
and white flesh one has reduced (Table 3). The main reason is that although the taste
and flavor of red fresh varieties are popular to Taiwanese consumers, but the
cultivation of white fresh ones has reduced the production down to about 10% of the
total production over the past 10 years. Due to the smaller-scale production and some
consumers love the flavor of white fresh varieties, its price is relatively stable
compared to the red one.

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Table 3. Dragon Fruit Trading Volume and Average Price of Taipei Fruit and Vegetable
Market in 2011-2019
H.polyrhizus H.undatus import
Trading Average Trading Average Trading Average
Year
Volume Price Volume Price Volume Price
(Kg) (USD/Kg) (Kg) (USD/Kg) (Kg) (USD/Kg)
2011 801,414 1.74 2,900,458 1.28 10,106 1.88
2012 1,104,851 2.10 3,175,106 1.72 26,166 2.12
2013 1,420,986 2.14 3,047,557 1.55 14,727 1.94
2014 2,286,169 2.02 3,686,824 1.63 13,801 2.02
2015 3,296,122 2.02 3,558,329 1.75 12,778 2.29
2016 4,226,509 1.97 3,726,421 1.65 82,630 2.13
2017 6,391,299 1.53 4,385,569 1.27 104,842 1.59
2018 7,617,338 1.25 4,061,544 1.08 30,596 1.59
2019 8,019,999 1.33 3,808,593 1.21 - -

From 2006 to 2018, AFA has conducted eight production cost surveys, The data
showing that the production cost of dragon fruit in Taiwan is US$0.65-0.75 per
kilogram, of which wages payment accounted for the largest proportion (60%),
followed by fertilizer cost (15 %) and pesticides cost (4%). In the detailed analysis of
wage payment, harvest and sales (24.5%) and pruning (19.9%) accounted for the most,
followed by bagging (21.3%), pesticide prevention (12.4%) and fertilization (9.1%)
(Figures 5 and 6). Although there is a lot of expenditure on production costs, statistics
show that since 2007, the income of farmers has continued to increase (Figure 7).

Figure.5. Percentage of production costs of cultivated dragon fruit in 2018

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Figure.6. Analysis of the proportion of wages in cultivation of dragon fruit in 2018

Figure.7. Dragon fruit production costs and farm earnings in 2006-2018

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CHALLENGES OF PITAYA PRODUCTION IN TAIWAN

When the dragon fruit industry in Taiwan started, the characteristics and quality of the
fruit changed greatly in terms of flesh color, fruit shape and fruit cracking due to the
instability of the variety. After 1999, the true-type clone was released by TARI and
farmers, which not only confirmed the stability of the clonal propagule, but also
ensured better yield and fruit quality. In recent years, new findings have shown that
some dragon fruit have systemic mottled symptoms, and that they have been infected
by the viruses Zygocactus virus X (ZVX), Pitaya virus X (PiVX) and Cactus virus X (CVX)
(Li et al .2016), This will be the key issue for the Taiwan government to resolve next. It
was even found that dragon fruit has no serious diseases, pests and pathogens, but
Taiwan still has a few cases of excessive use of pesticides on dragon fruit, and the
planting area is increasing rapidly; the scale of the production system is small; the high
production cost and extra labor are also a need to be solved. (Yu, 2015). Climate
change and more frequent extreme weather, depletion of environmental resources,
increasing competition in the international trade market, and diversification of
consumers are the main challenges faced by Taiwanese dragon fruit producers. With
people's concern about health, varieties, cultivation techniques and consumer
attractiveness, the popularity of dragon fruit has recently increased, leading to an
increase in planting area. Taking all factors into consideration, including production
area, output, export volume and market price, the industry is clearly rising. But it does
have some potential problems, as follows:

Excessive and rapid expansion of the industrial area: Since 2009, the cultivated area
has expanded rapidly, reaching 2,865 hectares in 2019, and the total output of 69,711
tons has exceeded the domestic market demand, resulting in very tight supply and
demand relations, a slight overproduction and rapid prices decline;2The improper use
of pesticides has caused consumers' doubts about the safety of the fruit: In the past,
the cultivation of dragon fruit in Taiwan almost did not require the use of pesticides.
Statistics show that pesticides only accounted for 4.2% of the input cost. In recent
years, due to climate change and increased cultivation area, more diseases and pests
have caused losses. Lack of proper pesticide use recommendations and unreasonable
use of these chemicals will also threaten the prospects of the industry.

The production area is fragmented and lacks the economic scale of commercial
operation: Most of the dragon fruit cultivation farmers have an area of less than 0.5
hectares, and they are scattered throughout Taiwan. The extremely scattered
production areas make it difficult to carry out collective pest control. Due to farmers
operating on a small-scale mode, the farm environment and farming methods are
different, resulting in serious inconsistencies in quality and the inability to plan
production. Both are not conducive to export operations and cannot alleviate the
disadvantage of saturation of the domestic market; and higher production costs have
reduced international competitiveness: In contrast, Taiwan’s land costs and wages are
significantly higher than those of competitors such as Vietnam, Malaysia and China.

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Taiwan’s production survey data show that labor costs account for 60% of production
inputs. This factor alone has greatly weakened Taiwan’s competitiveness in the
international market.

RESPONSE OF PITAYA CHALLENGES PRODUCTION IN TAIWAN

The production of dragon fruit continues to grow in the past ten years in Taiwan
because of its stable high price. The higher income attracted farmers to venture into
the industry. The increase in the number of cultivation makes the market price
fluctuate. Meanwhile, labor costs are too high and with dragon fruit imported from
Malaysia and Vietnam during the lean months or non-production season, the Taiwan
government has formulated the following support measures to maintain industry
competition force:

1. Strengthen the supply chain management of orchards for export: It is


recommended that distributors reach a contract with the producer in the
upcoming harvest season, and then log in to the registration system for
management. So far, the total area of this contract-based orchard is 72 hectares.
They not only set out to improve the environment and facilities. It has also
adopted a registry and barcode tracking system to better manage the supply
chain, which will improve the quality and consistency of its fruits.

2. Connect high-quality producers to become a production cluster: In order to


improve the quality of dragon fruit and increase operational efficiency, APM
groups are encouraged to join forces with neighboring production units to
jointly adopt favorable varieties and technologies. They can also apply
pesticides collectively to produce better fruits at a stable rate. So far, five
clusters have been established with a joint area of 70.29 hectares in Taiwan.

3. Cultivation and management techniques to reduce pesticides and


environmentally friendly farming: For the safety of farmers and consumers, a
technical service group has been established to provide farmers with
educational courses on how to produce dragon fruit more safely. Check the
residues of final product, and strongly emphasize the reasonable use of
pesticides. Continue to give suggestions and on-site demonstrations to
consumers, advocate reasonable consumption behaviors, avoid excessively
caring about the appearance of the fruits and make farmers rely on chemical
pesticides, and conduct domestic marketing activities at the same time. Since
2011, the Fengshan Tropical Horticultural Experiment Branch, TARI, has been
conducting annual fruit evaluations to provide technical guidance on the
production of high-quality and safe dragon fruit.

4. Introduction and promotion of safety product labeling and certification: In


addition to consumers and the international community paying attention to

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food safety, it is recommended that farmers use pesticides with higher safety
awareness and adopt TAP, organic systems or QR code tracking that allows food
to be traced back to the producer and establish a responsibility system.
Through these, you can improve consumer confidence, brand reputation and
market differentiation.

5. The concept of enhancing local production and local consumption: During peak
seasons, the supermarkets and wholesalers associations of farmers’
associations cooperate with relevant farmers’ groups to strengthen their
purchasing and marketing efforts. Fresh dragon fruits are shipped to the
wholesale market for auction through collective marketing to reduce the price
increase. Also instruct farmers’ groups to engage in leisure activities, tourism
and industrial culture in sales activities to expand buying interest.

6. Develop post-harvest processing and storage technologies to extend storage


life and quality: AFA has been entrusting and funding universities to conduct
research to improve the post-harvest processing and storage technologies of
dragon fruit. It is hoped that the dragon fruit can be kept longer in the future
while maintaining the same freshness to adapt to the overseas market.

7. Diversify dragon fruit varieties and use lightning to manipulate and extend the
production time: usually, dragon fruit is produced between May and November.
Now, with the help of new varieties and lightning protection regulations, it can
be produced almost all year round. It is hoped that these measures can help
diversify production and ease the pressure of unloading during the peak gold
season.

CONCLUSION

In the past ten years, dragon fruit has become an important emerging fruit in Taiwan.
It not only tastes good, but also has nutritious, good health care functions and is
welcomed by consumers. Taiwan has established a system for new species breeding,
pest control technology, bagging and off-season production (Jiang and Yang, 2016). In
recent years, production and market conditions are changing. In response,
diversification and promotion of seasonal regulations are essential. Likewise, efforts to
promote certification for better safety management can lead to better product safety
and protect consumer interests. A marketing system has been established, including a
production information database with real-time dynamic information for farmers, a
comprehensive production information network has been established, and a variety
of ways to enter the domestic and foreign markets have been increased. Through this
new agricultural policy, Taiwan's dragon fruit industry has indeed taken a big step
forward.

On the export side, we will continue to work on the registry and traceability system for

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export supply orchards and production clusters, which not only improves the logistics
system and storage technology, but also makes the products more competitive
internationally, because only after healthy production and sales are balanced, can the
dragon fruit industry in Taiwan have sustainable development. The goal is to have
economically viable farms and happy farm families in rural Taiwan (Lee, 2018).

REFERENCES

Council of Agriculture, Executive Yuan, R.O.C. 2020. Agricultural statistics yearbook. <
http://agrstat.coa.gov.tw/ sdweb/public/book/Book.aspx>.
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Weidmann, Gilles. 2015. Plant Breeding Techniques. FiBL, Switzerland. 29 pp.
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Yen, Chung-Ruey and Pi-Chuan Liu, 2013. Selection and prospects of new fruit crops in
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S2-1: Quality Standards and Quarantine Inspection for International


Markets – Vietnam Experience

Nguyen Van Hoa1, Dang Thi Kim Uyen1, Nguyen Hong Son1 and J.M. Campbell2

1 Southern Horticultural Research Institute (SOFRI), Tiengiang, Vietnam.


2 Plant and food Research Institute (PFR), Auckland, New Zealand

E-mail: hoavn2003@gmail.com

ABSTRACT

In Vietnam, at present, the area planted for dragon fruit (DF-pitaya) is about 60,644.3
ha with a total production of 1,250,161.2 tons and the average DF area per household
is 0.5- 1 ha. Unfortunately, producers of DF have seen prices for their fruit decline since
the product are mainly sold to local consumption or neighboring countries. Recent
concern over food safety, returns from pitaya could be significantly improved if small
growers and exporters can gain access to new high value markets in Europe and North
America—that is, if they have Good Agricultural Practices (GAPs) programs in place.
The development of safe horticultural models and implementation of GAPs
(GLOBALGAPs, VietGAPs) are becoming exaggerated importance in the food supply
chain. VietGAP issued by Ministry of Agriculture and Rural Development (MARD) in
2008 has become a priority and compulsory regulation in fruits producing and market
displaying. For development of GAP, many issues need to be covered: (i) Field farmers’
benchmarking survey; (ii) Selection of a packer/exporter and farmer groups for the
Pilot; (iii) The pitaya quality manuals for the farmer were developed; (iv) The national
personnel capacity building has seen practical GAPs proficiency developed; There were
three main production areas for pitaya in the Provinces of Binhthuan of about
30,654.31 ha with 642,063.93 tons, Tiengiang of 9,070.03 ha with 200,516.72 tons and
Longan of 11,841.98 ha with 316,657.90 tons in 2019. By 2017, 10,083.5 ha had been
certified for GlobalGAPs/ VietGAPs. Of them, 9,700 ha from Binhthuan, 310 ha from
Longan and 73.5 ha in Tiengiang provinces and in 2019, one farm of 1 ha got organic
certificate from the USDA- NOP. In Vietnam, the quality systems for DF are formed
from the central to local levels to manage production and distribution. MARD directs
and gives policies to support the locals in producing DF under GAP standards, applying
the Integrated Pest Management (IPM) on DF production in order to reduce pesticides
and inorganic fertilizers use, increasing use of organic manure. The crop is affected by
a number of pests and diseases with diseases causing the greatest losses both in the
field and postharvest stage. The major field diseases in Vietnam are canker
(Neoscytalidium dimidiatum), bacterial soft rot (Erwinia chrysanthemi), anthracnose
(Colletotrichum gloeosporioides, C. truncatum). In this paper, more related things have
been discussed.

Keywords: GlobalGAPs, VietGAPs, SOFRI, PFR, IPM, Dragon Fruit (DF), pitaya, manual,
Neoscytalidium dimidiatum, Colletotrichum gloeosporioides, C. truncatum.

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S2-2: Establishment of the GLOBALG.A.P. System for Pitaya in Taiwan

Yi-Lu Jiang

Department of Horticulture, National Chiayi University,


No.300 Syuefu Rd., Chiayi City 60004, Taiwan.

E-mail: jiangyl@g.ncyu.edu.tw

ABSTRACT

The planted area for dragon fruit (Hylocereus sp.) in Taiwan reached 2,865 hectares
and yielded 69,717 tons in 2019. It is mainly sold domestically, and its exports are at
0.76%. Recently, to expand the overseas market, we have introduced the GlobalG.A.P.
certification system in the pitaya industry. So far, we have three producers certified,
including one individual certification and two group certifications. To establish the
GlobalG.A.P. certification system, we have trained several professional counselors.
They not only help to create customized documents for certification but assist in site
evaluation. Thus, we will discuss some problems and how the certification process of
pitaya in Taiwan can further be improved. Although there are still many challenges that
are being faced, the GlobalG.A.P. will continue to spread to the whole pitaya industry,
to ensure its sustainable development.

Keywords: Certification, Hylocereus, consultor

INTRODUCTION

Pitaya production in Taiwan

Dragon fruit or pitaya has been introduced in Taiwan since the 1980s and has since
increased in terms of popularity. Through years of intra- and interspecies breeding,
varieties of pitaya with various peels and flesh colors were developed in Taiwan, some
of the well-known varieties are ‘Da Hong’, ‘Mi Bao’, ‘Dual color’, ‘Ching Lung’, ‘Tai
Huang’, ‘E Huang’ etc. ‘Da Hong’ are the most popular red flesh cultivars in pitaya’s
commercial production. ‘E Huang,’ also called yellow pitaya, belongs to H.
megalanthus which is a newly cultivated variety with yellow peel, white flesh and high
quality. It is a high-priced fruit internationally. ‘Dual color’ is a variety with red flesh
around the spherical and white flesh in the core part, which is very attractive high-
quality fruit (Figure 1).

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Figure1. Fruit morphology of (left)‘E Huang’ and (right)‘Dual color’ variety in


Taiwan

According to Taiwan’s 2019 Agricultural Statistics Yearbook, the planted area for
dragon fruit reached 2,865 hectares and yielded 69,717 tons (Figure. 1), over 85%
arelocated in the middle and Southern area of West Taiwan. The productivity was
approximately 25 metric tons/ha in recent years. In 2018, majority of the fruits are for
domestic demand, and a small quantity are for exports (0.67%). Of the total foreign
sales of nearly 530 metric tons of pitaya in 2019, 78 % of those were exported to Hong
Kong and China. Other exporting countries are Singapore, Canada, Macao, Palau etc.
(Figures. 2 and 3). ‘Da Hong’ and ‘Mi Bao’ are the main export varieties. According to
Taiwan’s Trade Statistics (https://portal.sw.nat.gov.tw/APGA/GA30) the average
exporting price was $US1.93/Kg. Taiwan also imported 426 metric tons of dragon fruits
at a price of US$1.29 /Kg from Malaysia and Vietnam in 2018. At this stage, the urgent
challenge that needs to be faced is how to expand the foreign sales of dragon fruit.

3500 30
Area Planted(ha) Fruit yield (ton/ha)
3000 25

2500
20
2000
ton/ha
ha

15
1500
10
1000

500 5

0 0
1999

2004
2000
2001
2002
2003

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Figure 2. The production of dragon fruits in Taiwan from 1999-2019.


(https://agr.afa.gov.tw/afa/afa_frame.jsp)

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250

2017 2018 2019 2020 until Aug.

200

150
metric tons

100

50

0
People's Hong Kong Canada Singapore Macao Palau others
Republic of
China

Figure. 3. Export quantity of exported countries of pitaya fruits in Taiwan from


2017-2020 until August. (https://pbi.afa.gov.tw/AFABI_Open/Query)

Good Agricultural Practice (GAP) development in Taiwan

Taiwan became a WTO member in 2002 and therefore could expand foreign markets
for its agricultural products based on Most Favored Nation (MFN) treatment. In order
to promote agricultural and processed products to foreign markets, and to meet the
market demand for product quality and safety, Traceable Agricultural Products (TAP)
system has become the main link under the quality certification. In 2003, Taiwan’s
Council of Agriculture (COA) established the "Taiwan Agricultural and Food Traceability
system" database (https://taft.coa.gov.tw/default.html) with reference to the TAP
system of Europe, the United States and Japan. Since 2007, TAP has been fully
promoted and implemented.

The TGAP system included two parts: Taiwan Good Agricultural Practice (TGAP) and
Traceable and Third-party certification. TGAP can be divided into seven catalogs with
a total of 147 documents, namely general crops (124), organic crops (5), livestock (5),
poultry (2), aquaculture (9), processing (1) and forestry (1) until August 29, 2020. There
are 56 production units, 211 persons and 154.3 hectares included in the pitaya TGAP
certification package in Taiwan until August 29, 2020.

To set up sustainable agriculture and to connect with the international market,


Professor Tzong-Shyan Lin introduced the EUROG.A.P. system in 2005, and first tried it
in the mango industry, which established a good foundation. The Tokyo Olympic
Organizing Committee will give priority to accepting agricultural and livestock products
that have passed the JGAP or GLOBALG.A.P scheme in 2020. This opportunity has

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revived a wave of GLOBALGAP certification in Taiwan. In order to sell agricultural


products to the Tokyo Olympics Games. The Council of Agriculture subsidy industry
has applied for GLOBALG.A.P. certification.

According to GLOBALG.A.P. official query system, there are 31 producers that had been
certified for Integrated Farm Assurance Standard (IFA) which covered 26 fruits and
vegetables (FV), 1 Tea (TE), 1 Flowers & Ornamentals (FO) and 3 Aquaculture (AQ)
listed in Table 1. In addition, there had been certification for 3 Chain of Custody (COC)
and 1 Compound Feed Manufacturing (CFM). So far, we have 3 dragon fruit producers
certified, including one individual certification (Option 1) and two group certifications
(Option 2).

This year 2020, 8,284 ha had been certified for GlobalG.A.P., occupying 24.5% of
Taiwan’s total production area, making good contribution to the exportation in terms
of quantity, quality, uniformity and enhanced GAP benefits awareness by producers,
exporters, and customers.

Table 1. Valid certificate

Scopes Modules Product Option 1 Option 2 Option 3


Broccoli, Cabbages,
Carrot, Celery,
9 3 -
Lettuce, Melon,
Tomato
Fruit & Atemoya, Banana,
Vegetable (FV) Carambola, Guava,
Crop Base Jujube, Litchis,
11 3 -
(CB) Mandarins, Papaya,
Passion Fruit,
Pineapple, Pitaya
Tea (TE) Tea 1 -
Flowers &
House Plants-Orchids
Ornamentals - - 1
(PPM)
(FO)
Aquaculture (AQ) Barramundi 3 - -

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S2-3: Quarantine Requirements for Importation and Exportation of


Dragon Fruits in Taiwan

Shih-Tsai Yang

Bureau of Animal and Plant Health Inspection and Quarantine, Taiwan

E-mail: styang@mail.baphiq.gov.tw

ABSTRACT

The Plant Quarantine Division, Bureau of Animal and Plant Health Inspection and
Quarantine (BAPHIQ), Taiwan is in charge of the plant import and export quarantine
and inspection affairs. For plants and plant products to be exported to other countries,
BAPHIQ conducts the inspection or quarantine treatments according to the
requirements of importing countries. For example, the exporting dragon fruits
(Hylocereus undatus) to Japan, vapor heat treatment is requested. On the other hand,
according to Taiwan’s regulations, if plants or plant products have no import records,
the Pest Risk Assessment (PRA) is requested. The import requirements are decided
based on the results of the PRA. Taiwan imports dragon fruits from Vietnam and
Malaysia. All dragon fruits imported from Vietnam shall be treated with vapor heat
treatment according to requirements that both sides agreed.

Keywords: dragon fruits, pitaya, quarantine, exportation, importation

INTRODUCTION

The Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ), Taiwan
was formally established on August 1, 1998. It consists of four branches, Keelung,
Hsinchu, Taichung and Kaohsiung branches and inspection stations. All branches and
inspection stations are jointly responsible for affairs pertaining to plant and animal
inspection and quarantine of Taiwan. The headquarter has the following divisions:
Planning; Animal Health Inspection; Animal Quarantine; Plant Protection; Plant
Quarantine; and Meat Inspection Divisions. They work closely together to safeguard
and ensure the quality and sanitation of all agricultural products entering Taiwan. In
addition, the Bureau is responsible for quarantine services and prevention and control
of important animal and plant diseases and pests. These measures promote the
development of Taiwan’s agriculture, protect natural resources, and safeguard the
health of the people.

For the plant quarantine aspect, BAPHIQ conducts inspections of import and export
plants and plant products at seaports, airports, international mail centers and fields.

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Moreover, BAPHIQ supervises and conducts quarantine treatments for importing and
exporting plants or plant products. As a member of WTO, all these procedures or
requirements are based on international regulations such as the SPS (Sanitary and
Phytosanitary) agreement, the International Standards for Phytosanitary Measures
(ISPM), and Taiwan’s regulations such as the “Plant Protection and Quarantine Act”,
“Enforcement Rules on Protection and Quarantine Act” and so forth.

EXPORTATION

For exporting plants and plant products to other countries, BAPHIQ conducts visual
inspections, field inspections, quarantine treatments, or laboratory examination
according to the quarantine requirements that both the importing countries and
Taiwan agreed upon. Because there are various quarantine requirements for
exportation, BAPHIQ established a website (https://export.baphiq.gov.tw/
coa/hotnews_idx.php) listing these requirements for exporters’ references. When
exporters require export inspections, they can raise their application through the
internet, FAX or contact the branches or stations directly based on the requirements
of importing countries. After completing the inspection, a phytosanitary certificate will
be issued when the consignments fulfilling the quarantine requirements.

Because Oriental fruit flies (OFFs, Bactrocera dorsalis) occur in Taiwan, fruits produced
in our territory always have pest concerns by importing countries. Therefore,
necessary treatments might be required according to the requirements of the
importing countries. For example, when exporting white flesh dragon fruits
(Hylocereus undatus) to Japan were being planted, BAPHIQ prepared a series of
reports of quarantine treatments for OFFs including the methods of inoculation and
the trial of disinfestations treatment (vapor heat treatment, VHT). BAPHIQ submitted
comprehensive dossiers to Japan in 2004. After conducting a complete and careful
review for about five years, Japan sent an inspector to Taiwan to confirm the
effectiveness of experiments of VHT in 2009 and then finally accepted the market
access application in 2010. Taiwan’s dragon fruits shall be treated with VHT before
exportation to Japan to eliminate OFFs.

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Figure 1. The on-site inspections conducted by Japan’s inspector during market


access application process of Taiwan’s dragon fruits (Hylocereus undatus)

IMPORTATION

According to Taiwan’s regulations, if plants or plant products have no import records,


the Pest Risk Assessment (PRA) is requested. The National Plant Protection
Organizations (NPPOs) of exporting countries have to provide relevant information of
the plants or plant products, such as the production areas, growth properties,
propagation methods, climatic conditions for growing them, yields, harvest seasons,
the postharvest processes, pest lists, information regarding pest control and the list of
chemicals used. If certain fruit flies occur in the exporting countries, the NPPO must
also provide the report of disinfestation trials for the fruit flies for this commodity;
otherwise, there must be an application to recognize the pest free status of the pests
mentioned above. If it is necessary, Taiwan will dispatch officials to the exporting
countries to conduct on-site verifications. After completing the verification, the plant
or plant products from exporting countries may be allowed to export to Taiwan by
complying with certain quarantine requirements. In addition, all costs for conducting
on-site verifications shall be borne by exporting countries. The import quarantine for
the plants or plant products will be decided based on the results of PRA.

The import requirements are divided into portions that are prohibited and can be
imported. For the prohibited part, BAPHIQ lists the pests that are concerned about
with their hosts, scientific names and the infested areas. If imports are allowed, the
phytosanitary requirements for additional declarations on phytosanitary certificates
are listed for the plants or plant products imported to Taiwan. For example, the
“Quarantine Requirements for the Importation of Fresh Dragon Fruits (Hylocereus

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undatus) from Vietnam” is one of the Requirements. Dragon fruits are hosts of guava
fruit flies (Bactrocera correcta), and Viet Nam is an infested area. Therefore, dragon
fruits from Vietnam were prohibited. In order to access the market of Taiwan, Vietnam
provided documents for the PRA to Taiwan. After reviewing the papers provided by
Vietnam and sending inspectors to Vietnam to verify the effectiveness of the
experiments of vapor heat treatments, BAPHIQ drafted the Quarantine Requirements
for Vietnam’s review including the requirements with vapor heat treatment under
46.8℃ for 40 minutes. The Quarantine Requirements were agreed upon by both
sides and entered into force in 2016. According to the Quarantine Requirements,
Vietnam needs to conduct the management of orchards, packing houses, and VHT
facilities. BAPHIQ also sends inspectors to Vietnam to conduct on-site inspections
during the exporting season every year.

Figure 2. The vapor heat Figure 3. The export inspections in Vietnam when
treatment of dragon exporting to Taiwan
fruits in Vietnam when
exporting to Taiwan

CONCLUSION

Plant quarantine is an enforcement of measures to prevent pests from spreading to


established restricted areas. BAPHIQ, as the NPPO of Taiwan, is responsible for import
and export inspections in orchards, ports, and international mail centers and so forth.
In international trade, dragon fruits are important plant products. Taiwan exports
dragon fruits to Japan and imports them from Vietnam and Malaysia. Because of
different pest statuses, dragon fruits have to be treated with vapor heat when
exporting to Japan and importing from Vietnam. Fruit flies are major international
pests especially in trading of fruits. Taiwan will continue improving the quarantine
treatments and cooperate with foreign countries to conduct the PRA and quarantine
treatments as well as achieving the goal of protecting the environment for better

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facilitation of trading.

REFERENCES

Anonymous. 2020. Quarantine requirement for the importation of plants or plant


products into the Republic of China.
(https://www.baphiq.gov.tw/en/view.php?catid=11712; Accessed September 9,
2020)
Anonymous. 2020. About BAPHIQ
(https://www.baphiq.gov.tw/en/view.php?catid=11612, Accessed September 9,
2020).
Lin, K.W., T. K. Wang, and Y. C. Chen. 2017. The import quarantine of Viet Nam’s fresh
dragon fruit. BAPHIQ Quarterly. 52: 8-10

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S3-1: Consumer Perceptions and Preferences for Fruit: Opportunities


for Dragon Fruits

Roger Harker

The New Zealand Institute for Plant and Food Research Limited, Mt Albert Research
Centre, Private Bag 92619, Auckland, New Zealand

E-mail: roger.harker@plantandfood.co.nz

ABSTRACT

Approaches to sensory and consumer science are evolving. Research is demonstrating


that consumers can provide information on flavor similar to that offered by experts or
trained panelists, and often the vocabulary used by consumers is more relevant in the
marketplace. Our research approaches are founded on the food choice kaleidoscope,
which proposes that an eating occasion should be characterized through the lenses of
the product, person and place (Jaeger et al., 2011), and its extension to understand
how flavor influences consumers’ perceptions of uniqueness and emotional responses
to food. Here, we consider how our newer methodologies are being applied to
research on the eating quality of fruits and how they could be applied to identify
opportunities for dragon fruit. In particular, how the role of sensory characteristics of
fruits (texture, taste, flavour, aroma, and appearance) can combine to provide an
eating experience that is satisfying to consumers.

INTRODUCTION

Dragon fruit is a product that is grown, exported, and sold in regions beyond its original
geographic distribution in Mexico and Central and South America. Thus, growers and
marketers of dragon fruit are focused on developing new opportunities for this fruit,
and knowledge of consumer responses to new and novel fruits is highly relevant to
them. Plant and Food Research has an interest in dragon fruit (O’Callaghan, 2019) and
has been involved in research to understand consumer responses to new fruits to
support various fruit breeding programmes and the transition of our New Zealand
industries into non-traditional fruit crops (Harker et al., 2005). In this presentation, we
review the science that may help researchers and industry identify opportunities and
barriers for the expansion of the dragon fruit industry.

Food cultures

Food culture informs communities as to what products are appropriate to eat and how
they should be eaten. Often what is appropriate to one food culture is not appropriate

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in another. Sweet potato, for example, is used as a component of main meals in some
Western cultures but as a desert in some Asian cultures. This means that one needs to
understand the food culture that the product is sold into, and recognize that what
works in one food culture may not easily translate into another.

Food choice kaleidoscope

Understanding how foods fit into people’s lives is a complex challenge. Our
understanding is based on the food choice kaleidoscope, which proposes that we need
to consider any eating occasion through the lenses of the person, the product and the
place (Jaeger et al., 2011). Using this approach we have found that fruits can fit in
different ways into people’s diets. For example, in a group of 25 women in New Zealand,
fruit consumptions largely occurred during eating occasions that included other foods
(i.e. fruit was not often eaten alone as a snack), breakfast was a dominant eating
occasion that included fruit (particularly banana and kiwifruit), citrus tended to be
eaten in the afternoon, and apples were the only fruit consumed equally throughout
the day (Bava et al., 2012).

Food neophobia

Food neophobia is a behavioral trait that relates to the fear of or resistance to


consuming novel foods. It is a trait that has a strong influence on the range and types
of foods consumers like to include in their diets (Jaeger et al., 2017). Our team has
often considered food neophobia in studies on consumer responses to new and novel
fruits (Jaeger et al., 2005), although it needs to be acknowledged that consumers with
extreme food neophobia are unlikely to attend such studies. Nevertheless, food
neophobic responses are often uncovered in interviews with consumers or during
thought-listing tasks during experimental auctions. Fresh produce that was regularly
observed by consumers and perceived as visually attractive and intriguing was not
purchased. In focus groups, comments included: (1) ‘They put glorious fruit in the
supermarket and you don’t know what to do with it’, (2) ‘I feel intimidated in the shop
and felt embarrassed about what the reaction would be if I asked about this new fruit’
and (3) ‘I don’t buy it until I vaguely know what it tastes like’ (Harker et al., 2005).

Sensory characteristics

For most fruit growers, eating quality is the one aspect of production that they have
some element of control over and that will influence consumers’ willingness to pay
and repeat purchases. Research has demonstrated that sensory characteristics
influence consumer liking, choice and the price they are willing to pay for fruit (Jaeger
et al., 2011). Food quality is usually defined as all those characteristics of a food (not
just the sensory characteristics) that lead a consumer to be satisfied with the product
(Definition according to Harker et al., 2003 after Cardello 1995). Generally, our team
deconstructs eating quality as described below.

Eating Quality (by equivalence with above):

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All those characteristics of a food that lead a consumer to be satisfied with the eating
experience. Eating quality is affected by:

• Flavor: The impressions perceived via the chemical senses from a product in
the mouth. Defined in this manner, flavour includes:

o The aromatics, i.e. olfactory perceptions caused by volatile substances


released from the product in the mouth via the posterior nares [nasal
passage].
o The tastes, i.e., gustatory perceptions (salty, sweet, sour, bitter) caused
by soluble substances in the mouth.
o The chemical feeling factors that stimulate nerve ends in the soft
membranes of the buccal and nasal cavities (e.g. astringency, spice heat,
cooling, bite, metallic flavour).
(Definition according to Meilgaard et al. 2007; after Caul 1957)

• Texture: The sensory manifestation of the structure of the food and the
manner in which this structure reacts to applied forces, the specific senses
involved being vision, kinaesthesia, and hearing [note that kinaesthesia is the
sensation of presence, position, or movement resulting from stimulation of
sensory nerve endings (or mechanoreceptors) in muscles, tendons and
joints]. Texture is separated into three broad categories:

o Mechanical properties (e.g. hardness, elasticity);


o Mouthfeel / geometric properties (e.g. smooth, gritty);
o Fat / water content (e.g. in fruit this is juiciness).
(Definition by Szczesniak 1990 and Szczesniak 1963)

Texture is also important because the breakdown of food structures during


chewing is the primary process through which the chemicals contributing to
flavour are released into the mouth.

• Psychological factors: Consumers’ perceptions of flavor are often influenced


by their expectations of what they are about to experience (e.g. the addition
of red food coloring to white wine results in consumers describing wines as
having berry fruit and plum flavours, even though there has been no physical
change in volatiles or tastants). In relation to natural whole foods, key factors
include:

o Appearance (e.g. color of skin = ripeness, color of the flesh = red vs.
green flavors);
o Odour/Aroma: The aromatics, i.e. olfactory perceptions caused by
volatile substances in the environment or perceived by sniffing the
product.

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In most situations where consumers (and experts) assess eating quality, it is


difficult to isolate physical (flavor and texture) and psychological factors.

When considering the sensory properties of fruit it is important to recognise that


everyone lives in their own flavour-world (McRae et al., 2013). Individuals are known
to vary in sensitivity to taste and aroma and this can influence how they might perceive
and describe foods and which foods they like and think are appropriate to eat.

Appearance

Consumers often select products based on appearance and there are few
opportunities to taste commodities before purchase. Novel appearance can
sometimes represent a barrier to purchase and consumption, particularly for
consumers who are food neophobic. Researchers need to be cautious when identifying
preferred appearances (e.g. when establishing breeding targets), because the color
and shape of fruits preferred by some consumers may be disliked by others, and novel
colors and shapes may be avoided because of a lack of familiarity or context (Gamble
et al., 2006).

Implications for dragon fruit

Appearance is a distinct advantage for dragon fruit, as indicated by Adrian Capote:


‘With its vibrant colors, dragon fruit looks very pretty, which makes it an impulse buy
for many’ (Hemmes, 2017). It is likely that this contributes to consumer interest in
some markets, for example the color and shape and the association of good fortune
with the name are thought to contribute to the success of the fruit in Chinese
communities (Anon, 2020). Yet the advantage of unique appearance might be a barrier
in other markets. Striking appearance on its own is sometimes not enough to get over
the purchase hurdle for novel unfamiliar fruits, particularly for consumers who are
food neophobic. A conversation regarding persimmon that occurred in a focus group
on novel fruits is informative here: ‘I know that fruit – I see it every time I go shopping
– It’s that bright orange fruit that looks so nice – Does anyone know how to use it?
What does it taste like?’ (Harker et al., 2005).

Another potential barrier for some consumers is the taste of dragon fruit: ‘a common
refrain from consumers is that though it has a delicate flavor and has antioxidant
benefits, the taste is sometimes bland and not sweet’ (Chen and Paull, 2019). It is well
known that sweet/acid balance is determined by the concentrations of sugars and
acids. Increasing the concentration of sugars will suppress perception of acidity and
increasing the concentration of acids will suppress the perception of sweetness
(Rossiter et al., 2000, and references therein). High intensity of flavor is often
associated with high concentrations of both acids and sugars and some trained tasters
will recognise this by the perception of high acidy that exists in an experience that is
not unpalatable. Low sugar concentrations in the absence of acidity are often, in our
experience, associated with consumers describing fruit as being bland. Interestingly,
that research using model solutions indicates that when the concentrations of sugars

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are low, the addition of a small amount of acid will increase consumers’ perceptions
of sweetness. It seems likely that addressing the perception that dragon fruit are bland
and not sweet may require research on the biology of both sugars and acids.

CONCLUSION

The diversity of consumer behaviors introduces complexity into the development of


markets for new and novel fruits. While some adventurous consumers may rapidly
adopt the product and incorporate it into their diets, other consumers will be more
cautious. Understanding some of the barriers to consumption can often identify
important research needs that can be addressed by fruit biologists and technologists.
As with other novel fruits there are many opportunities for dragon fruit.

REFERENCES

Anon 2020. World’s dragon fruit suppliers and demand. Dragon fruit
(https://dragonfruit.net.vn/news/185-world-s-dragon-fruit-suppliers-and-
demand.html)
Bava CM, Worch T, Dawson J, Marshall DW, Jaeger SR 2012. Characteristics of eating
occasions that contain fruit. British Food Journal 114: 1361-79.
Caul JF 1957. The profile method of flavour analysis. Advances in Food Research 7: 1-
40.
Cardello AV 1995. Food quality: relativity, context and consumer expectations. Food
Quality and Preference 6: 163-170.
Chen NJ, Paull RE 2019. Overall Dragon fruit production and marketing. FFTC
Agricultural Policy Platform (https://ap.fftc.org.tw/article/1596)
Gamble J, Jaeger SR, Harker FR 2006. Preferences in pear appearance and response
to novelty among Australian and New Zealand consumers. Postharvest Biology
and Technology 41: 38-47.
Harker FR, Gunson FA, Jaeger SR 2003. The case for fruit quality: an interpretive
review of consumer attitudes, and preferences for apples. Postharvest Biology
and Technology 28: 333-347.
Harker FR, Jaeger SR, Gamble J, Richardson-Harman N 2005. Consumer acceptance of
new horticultural crops. The Compact Fruit Tree 38(2): 26-30.
Hemmes M 2017. Dragon fruit is by far biggest growth item within the US exotic
fruits category. Fresh Plaza Mon 15 May 2017
(https://www.freshplaza.com/article/2175493/dragon-fruit-is-by-far-biggest-
growth-item-within-the-us-exotic-fruits-category/)
Jaeger SR, Bava CM, Worch T, Dawson J, Marshall DW 2011. The food choice

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kaleidoscope. A framework for structured description of product, place and


person as sources of variation in food choices. Appetite 56: 412-423.
Jaeger SR, Harker R, Triggs CM, Gunson A, Campbell RL, Jackman R, Requejo-Jackman
C 2011. Determining consumer purchase intentions: The importance of dry
matter, size, and price of kiwifruit. Journal of Food Science 76: S177-S184.
Jaeger SR, Rasmussen MA, Prescott J 2017. Relationships between food neophobia
and food intake and preferences: findings from a sample of New Zealand
adults. Appetite 116: 410-422.
Jaeger SR, Rossiter KL, Lau K 2005. Consumer perceptions of novel and familiar fruit:
A repertory grid application. Journal of the Science of Food and Agriculture 85:
480-488.
McRae JF, Jaeger SR, Bava CM, Beresford MK, Hunter D, Jia Y, Chheang SL, Jin D, Peng
M, Gamble JC, Atkinson KR, Axten LG, Paisley AG, Williams L, Tooman L Pineau
B, Rouse SA, Newcomb RD 2013. Identification of regions associated with
variation in sensitivity to food-related odors in the human genome. Current
Biology 23: 1–5.
Meilgaard MC, Civille GV, Carr BT 2007. Sensory evaluation techniques (4th Edition).
CRC Press, Boca Raton, FL.
O’Callaghan L 2019. Dragon fruit partnership delivers. Asiafruit Tuesday 2nd July 2019,
15:01 (http://www.fruitnet.com/asiafruit/article/179127/dragon-fruit-
partnership-delivers)
Rossiter KL, Young H, Walker SB, Miller M, Dawson DM 2000. Effects of sugars and
acids on consumer acceptability of kiwifruit. Journal of Sensory Studies 15: 241-
250.
Szczesniak AS 1963. Classification of textural characteristics. Journal of Food Science
28: 385-389.
Szczesniak AS 1990. Psychorheology and texture as factors controlling the consumer
acceptance of food. Cereal Foods World 351:1201-1205.

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S3-2: Anti-Obesity Effect of Red Pitaya (Hylocerus polyrhizus) in High


Fat Diet Fed SD Rats

Chi-Yu Yang1, Yu-Wen Hung1, Chi-Fan Liu1 and Yu-Hsin Chen2

1 Division
of Animal Technology, Animal Technology Laboratories, Agricultural
Technology Research Institute, Hsinchu, Taiwan
2 Crop Improvement Section, Taichung District Agricultural Research and Extension

Station, COA, Taichung, Taiwan

E-mail: chiyumail.atri.org.tw

ABSTRACT

Obesity is associated with high risk for developing cardiovascular disease and diabetes.
In this study, the anti-obesity effects of red dragon fruit juice and its puree by animal
experiment were investigated. The study was conducted over an eight-week period on
Sprague-Dawley adult rats, who were divided into four groups as follows (n =6 per
group). Standard diet group, high-fat diet group, group with high-fat diet and dragon
fruit juice with dose of 10 g/kg BW of rat/day, group with high-fat diet and dragon fruit
puree with dose of 10 g/kg BW of rat/day. Obesity-inducing diet, high-fat diet (total
4.73 kcal /g: carbohydrate 35%, fat 45% and protein 20%; diet #D12451, Research Diet).
The results of body weight, feed efficiency, liver weight, total body fat weight, body fat
percentage, hepatic triglyceride, and hepatic cholesterol of dragon fruit juice group
with high-fat diet group had p< 0.05, showing that there is a significant decrease. The
results of biochemistry tests of dragon fruit juice and dragon fruit puree groups with
high-fat diet group had p< 0.05, showing that there is a significant difference between
the two groups. It means that dragon fruit juice and dragon fruit puree groups can
decrease serum triglyceride, serum cholesterol and serum LDL significantly. The study
demonstrated that dragon fruit juice is better than dragon fruit puree and can improve
anti-obesity in rats. The dragon fruit juice can be developed as a functional ingredient
to reduce fat accumulation.

Keywords: dragon fruit juice, dragon fruit puree, obesity, high-fat diet

INTRODUCTION

Rates of obesity are rising alarmingly in many parts of the world, and this trend is not
restricted to adults only. Child and adolescent obesity is becoming a significant health
problem. Obesity in children and adolescents is a major concern, not only because of
health and social problems in the short-term, but also due to high risks that it may

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continue into adulthood and affect children’s long-term health. The global epidemic of
obesity is a major public health problem because of its comorbidities, such as
cardiovascular disease, type II diabetes and cancer.

Red dragon fruit (Red Pitaya) is among the most important commercial tropical fruits
around the world. Dragon fruit is an important source of phytochemicals such as
polyphenols, flavonoid and vitamin C which are related to its antioxidant activity. This
is especially evident in the red and white dragon fruit which have recently drawn
growing attention worldwide not only because of their economic values but also
because of their health benefits. Red dragon fruit consumption was reported to
contribute to the decrease of total cholesterol (TC), triglyceride (TG) and low-density
lipoprotein (LDL) levels while increasing the high-density lipoprotein (HDL) levels in
type 2 diabetic subjects.

In this study, it was found that HFD feeding effectively induced obesity in rats, as
evidenced by a significant increment of body weight at the beginning of 1 week in
comparison with the control group (Figure 1). At the end of the experiment, the
average body weight of rats in the HFD group (627.9 ± 47.2 g) was significantly higher
than that in the control group (495.5 ± 22.7 g; Table 1). Dragon fruit juice group
decreased HFD-induced fat deposition significantly, as compared to the HFD group.
The dragon fruit puree group also showed a significant decrease compared to the HFD-
induced fat group in epididymis fat tissues weight, total fat tissues weight and body
fat percentage (Table 2). The serum levels of TC, LDL, and LDL/HDL ratio in HFD-fed
rats were significantly higher than those of control group, indicating that HFD feeding
caused hyperlipidemia in rats. Dragon fruit juice and dragon fruit puree groups
significantly decreased these changes induced by HFD (Table 3). HFD feeding has been
shown to induce hepatosteatosis in rats. In this study, it was found that HFD feeding
significantly increased liver weight, hepatic TG and TC accumulation. The dragon fruit
juice group significantly decreased HFD increased liver weight, hepatic TG and hepatic
TC content. All four groups did not affect AST and ALT levels in serum (Table 4).
Biochemical analysis showed that there is no statistically significant difference that was
found between study groups of AST, ALT, Glucose, CRE, UA and FFA parameters of all
groups (Table 4 and 5).

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Figure 1. Body weight in Sprague Dawley rats during 8 weeks experiment period.

HFD:High fat diet;DFJ:Dragon fruit juice;DFP:Dragon fruit puree


***
Statistically significant difference between control (A) and high-fat control (B) at p<0.001.
##,###
Statistically significant difference between high-fat control (B) and treated groups at p<0.01, 0.001.

Table 1. Effects of Dragon fruit on body weight gain and food efficiency in Sprague
Dawley rats fed with HFD.

Control HFD HFD+DFJ HFD+DFP


Body weight
Initial 258.3 ± 21.5 307.6 ± 12.3 280.4 ± 10.7 291.4 ± 3.3
End 495.5 ± 22.7 ***
627.9 ± 47.2 519.3 ± 10.7 ###
579.9 ± 45.0
Change (%) 92.6 ± 13.7 104.1 ± 10.8 85.4 ± 10.2 98.9 ± 15.2
Average intake

food (g/d) 27.4 ± 1.9 22.1 ± 0.9 19.0 ± 0.9 21.3 ± 1.0
** #
food efficiency 31.6±4.4 44.7±3.0 35.3±4.8 38.5±4.5
HFD:High fat diet;DFJ:Dragon fruit juice;DFP:Dragon fruit puree
**, ***
Statistically significant difference between control (A) and high-fat control (B) at p<0.01, 0.001.
#, ### Statistically significant difference between high-fat control (B) and treated groups at p<0.05, 0.001.
Food efficiency: (body weight gain/total food intake) ×100%.

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Table 2. Effects of Dragon fruit on visceral fat weight in Sprague Dawley rats fed with
HFD.

Group Control HFD HFD+DFJ HFD+DFP


Mesentery fat 1.57 ± 0.39*** 3.74 ± 1.10 2.38±0.65## 3.20±1.33
*** ###
Kidneys fat 9.06 ± 2.15 24.60 ± 5.45 15.43±3.49 21.33±7.12
Epididymis fat 6.45 ± 1.77*** 17.01 ± 4.24 8.93±1.57### 13.86±4.19#
Total fat 17.09 ± 4.07*** 45.35 ± 9.97 26.74±5.02### 38.39±12.39#
Fat/body weight (%) 3.43 ± 0.82*** 9.11 ± 2.00 5.37±1.01### 7.71±2.49#
HFD:High fat diet;DFJ:Dragon fruit juice;DFP:Dragon fruit puree
***
Statistically significant difference between control (A) and high-fat control (B) at p< 0.001.
##,###
Statistically significant difference between high-fat control (B) and treated groups at p< 0.01, 0.001.

Table 3. Effects of Dragon fruit on serum lipid in Sprague Dawley rats fed with HFD

Group Control HFD HFD+DFJ HFD+DFP


TC (mg/dL) 125.9±31.6 *
203.0±36.5 142.1±23.3 #
151.3±22.6#
TG (mg/dL) 100.5±30.5 138.5±73.3 104.3±38.7 103.3±41.9
HDL (mg/dL) 26.8±2.4 28.3±1.7 26.4±3.6 28.0±3.4
LDL (mg/dL) 99.4±9.5*** 168.4±41.0 119.4±9.9## 105.6±17.6###
LDL/HDL ratio 3.72±0.41** 5.61±1.44 4.71±0.67# 3.77±0.42##
HFD : High fat diet ; DFJ : Dragon fruit juice ; DFP : Dragon fruit puree ; HDL : High Density
Lipoprotein;LDL:Low Density Lipoprotein;TC:Total cholesterol;TG:Total triglyceride .
*, **,***
Statistically significant difference between control (A) and high-fat control (B) at p<0.05, 0.01,
0.001.
#, ##,###
Statistically significant difference between high-fat control (B) and treated groups at p<0.05, 0.01,
0.001.

Table 4. Effects of Dragon fruit on liver lipids and inflammation in Sprague Dawley rats
fed with HFD.

Group Control HFD HFD+DFJ HFD+DFP

Liver weight (g) 12.13±1.38* 15.41±2.97 11.95±0.89# 13.67±1.16


Liver/Body weight (%) 2.44±0.28 2.50±048 2.28±0.17 2.26±0.19

TC (mg/g) 27.87±5.49*** 122.90±73.91 35.41±15.53## 58.13±37.43


TG (mg/g) 14.13±1.88*** 33.30±14.58 17.84±4.38## 23.75±6.66
AST (U/L) 97.0±17.8 95.3±36.2 111.0±41.2 123.0±34.5
ALT (U/L) 43.0±10.4 49.0±31.3 33.2±5.2 48.0±11.3
HFD : High fat diet ; DFJ : Dragon fruit juice ; DFP : Dragon fruit puree ; AST : Aspartate
Aminotransferase;ALT:Alanine aminotransferase;TC:Total cholesterol;TG:Total triglyceride.
*, ***
Statistically significant difference between control (A) and high-fat control (B) at p<0.05, 0.001.

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#, ##
Statistically significant difference between high-fat control (B) and treated groups at p<0.05, 0.01.

Table 5. Effects of Dragon fruit on blood glucose, creatinine, uric acid and free fatty
acids in Sprague Dawley rats fed with HFD.

Group Control HFD HFD+DFJ HFD+DFP Normal Range


Glu (mg/dL) 190.2±42.9 218.0±12.0 218.7±55.4 240.3±46.2 121.0-207.0
CRE (mg/dL) 0.4±0.1 0.5±0.1 0.4±0.1 0.4±0.1 0.40-0.60
UA(mg/dL) 1.9±0.3 1.9±0.3 2.3±0.4 2.7±0.7 1.50-2.70
FFA (mmol/L) 0.7±0.1 0.9±0.1 0.8±0.1 0.7±0.1 0.80-1.50
HFD:High fat diet;DFJ:Dragon fruit juice;DFP:Dragon fruit puree;Glu:Glucose;CRE:
Creatinine;UA:Uric Acid;FFA:Free Fatty Acid.

MATERIALS AND METHODS

Dragon fruit extracts preparation

The peels of fresh Red dragon fruit (Hylocereus polyrhizus) were removed and the
juice was squeezed out of the fruits using a juice maker. The dragon fruit juice and
puree were separated using 20-mesh plastic bags. After that, the juice and puree
were collected and stored at -30°C.

Animals and experimental design

Sprague Dawley rats (n=24) were used for this study and were divided into four groups.
Control: Standard diet group (D5053, Rodent Diet 13 kcal % fat, LabDiet, USA), HFD:
high-fat diet group (D12451, Rodent Diet 45 kcal % fat, Research Diet, USA), HFD+DFJ:
group with high-fat diet and dragon fruit juice with dose of 10 g/kg BW of rat/day,
HFD+DFP: group with high-fat diet and dragon fruit puree with dose of 10 g/kg BW of
rat/day. All animals were given a bottle for each cage, bottle filled with water and drink
ad libitum. The rats were kept individually and each rat had a tag number. They were
kept under standard environmentally controlled, clean-air room with temperature
22±4℃, 12 hours light/12 hours dark cycle, a relative humidity of 40~70 %. Body
weight and food consumption was measured once a week during induction of obesity.

Blood samples

After obesity induction, blood sampling was collected from tail artery using syringe,
and put in blood collection tubes. Centrifuge for 15 minutes at 3,500 rpm within 30
minutes of collection. Store serum samples at < -70℃.

Levels of total cholesterol and triglyceride

The levels of total cholesterol (TC) and triglyceride (TG) in rat serum were determined
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using enzymatic colorimetric method as described previously. For TC measurement,


50 μL of serum or cholesterol standard (0.25 g/μL) was mixed with a reaction buffer.
For TG measurement, serum or TG standard (250 mg/dL) was mixed with a reaction
buffer. The mixtures were allowed to react for 30 minutes at room temperature, and
the optical density was set to a wavelength of 500 nm. The serum TC or TG level (mg/dL)
was calculated as follows: (the absorbance of sample at 500 nm/the absorbance of
standard at 500 nm) × 200.

Levels of high-density lipoprotein cholesterol and low-density lipoprotein


cholesterol

The levels of HDL and LDL in rat serum were measured using the enzymatic
colorimetric method. For HDL analysis, 200 μL of serum was mixed with a separation
buffer to precipitate the LDL and VLDL fractions. For LDL analysis, 100 μL of serum was
mixed with separation buffer to precipitate the HDL and VLDL fractions. The mixtures
were allowed to react for 30 minutes at room temperature and then centrifuged at
12,000g for 15 minutes. Next, supernatant, HDL and LDL standard (200 mg/dL) were
mixed with a reaction buffer. The mixtures were allowed to react for 30 minutes at
room temperature, and the optical density was set to a wavelength of 500 nm. The
serum HDL or LDL level (mg/dL) was calculated as follows: (absorbance of sample at
500 nm/absorbance of standard at 500 nm) × 200.

Preparation of liver homogenates

The liver samples (1 g) were homogenized in 10 mL of chloroform and methanol (2:1,


v/v) mixtures with a homogenizer at 4°C to obtain liver homogenate. The
homogenates were centrifuged at 12,000g for 30 min at 4°C. The supernatant were
collected and used for TC and TG analysis as described above. The values of TC and TG
content are expressed as mg/g liver.

Statistical analysis

Data processing was conducted using Microsoft Excel 2010 and SPSS 12.0 for windows.
Analysis was carried out by using One Way ANOVA. If there was any significant
difference, Duncan t-test was conducted for further analysis. Values of p<0.05 were
regarded as significant. Data was presented in tables and figure as mean ± standard
deviation.

RESULTS AND DISCUSSION

Effects of dragon fruit juice and dragon fruit puree on body weight in HFD-fed rats

In the present study, we investigated and compared the effects of dragon fruit juice
and dragon fruit puree on HFD-induced obesity in rats. Herein, it was found that HFD
feeding effectively induced obesity in rats, as evidenced by a significant increment of

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body weight at the beginning of 1 week in comparison with the control group (Figure
1). At the end of the experiment, the average body weight of rats in the HFD group
(627.9 ± 47.2 g) was significantly higher than that in the control group (495.5 ± 22.7 g;
Table 1). Among these two dragon fruit extracts, only dragon fruit juice showed a
tendency, and show a significant level, toward reduction of body weight gain caused
by HFD, whereas dragon fruit puree did not exhibit such effect (Table 1).

Effects of dragon fruit juice and dragon fruit puree on fat deposition in HFD-fed rats

HFD feeding is critical for obesity development because excess calorie intake can
promote the development of a positive energy balance followed by increased visceral
fat deposition leading to abdominal obesity. In this study, the weight of total fat tissues
was calculated as the sum of the weight of mesentery, kidneys and epididymis fat
tissues. The body fat percentage is the total fat tissues weight and body weight. Results
revealed that HFD feeding significantly increased fat deposition in comparison with
the control group, as evidenced by the increased mesentery, kidneys, and epididymis
fat tissues weight. Dragon fruit juice group decreased significantly HFD-induced fat
deposition, as compared to the HFD group. The dragon fruit puree group also showed
significant decrease compared to that in the HFD-induced fat group in epididymis fat
tissues weight, total fat tissues weight and body fat percentage (Table 2).

Effects of dragon fruit juice and dragon fruit puree on serum lipid profiles in HFD-fed
rats

Obesity is deeply related to many chronic diseases, including hyperlipidemia,


hypertension, arteriosclerosis and cancer. The results showed that the serum levels of
TC, LDL, and LDL/HDL ratio in HFD-fed rats were significantly higher than those of
control group, indicating that HFD feeding caused hyperlipidemia in rats. Dragon fruit
juice and dragon fruit puree groups significantly decreased these changes induced by
HFD. However, serum TG and HDL levels were not significantly different among these
four groups (Table 3).

Effects of dragon fruit juice and dragon fruit puree on hepatosteatosis in HFD-fed rats

HFD feeding has been shown to induce hepatosteatosis in rats. In this study, it was
found that HFD feeding significantly increased liver weight, hepatic TG and TC
accumulation. The dragon fruit juice group significantly decreased HFD increased liver
weight, hepatic TG and hepatic TC content. All four groups did not affect AST and ALT
levels in serum (Table 4).

Effects of dragon fruit juice and dragon fruit puree on biochemical parameters
measured in HFD-fed rats

Biochemical analysis showed that there is no statistically significant difference that was
found between study groups of AST, ALT, Glucose, CRE, UA and FFA parameters of all
groups (Table 4 and 5).

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CONCLUSION

Increasing evidence indicates that the consumption of vegetables and fruits is


inversely related to many metabolic disorders, thus decreasing the risk of type II
diabetes, NAFLD and obesity. Dragon fruit, which are mainly cultivated in East and
Southeast Asia, Central and South America and Northern Australia, is reported to be a
natural source of bioactive nutrients, but few studies focused on its beneficial effects
on metabolic syndromes. The study demonstrated that dragon fruit juice is better than
dragon fruit puree and can improve anti-obesity in rats. The dragon fruit juice can be
developed as a functional ingredient to reduce fat accumulation.

REFERENCES

Chien, M.Y., Ku, Y.H., Chang, J.M., Yang, C.M. and C.H. Chen. 2016. Effects of herbal
mixture extracts on obesity in rats fed a high-fat diet. Journal of Food and Drug
nalysis 24: 594-601.
Esquivel P, Stintzing F.C. and Carle R. 2007. Phenolic compound profiles and their
corresponding antioxidant capacity of purple pitaya (Hylocereus sp.) genotypes.
Z Naturforsch C 62: 636–644.
Kim, C. W., Sung, J. H., Kwon, J. E., Ryu, H. Y., Song, K. S., Lee, J. K., Lee, S. R. and Kang,
S. C. 2019. Toxicological evaluation of Saposhnikoviae Radix water extract and
its antihyperuricemic potential. Toxicological Research 35: 371-387.
Maigoda, T. C., A. Sulaeman, B. Setiawan, and I. W. T. Wibawan. 2016. Effects of Red
Dragon Fruits (Hylocereus polyrhizus) Powder and Swimming Exercise on
Inflammation, Oxidative Stress Markers, and Physical Fitness in Male Obesity
Rats (Sprague Dawley). International Journal of Sciences: Basic and Applied
Research 25: 123-141.
Ruzlan, N, Kamarudin K.R., Idid S.Z., Aisyah M.R. and K. M. Suleiman. 2010. Antioxidant
study of pulp and peel of dragon fruits: A comparative study. International Food
Research Journal 17: 367-375.
Song H., Zheng Z., Wu J., Lai J., Chu Q., and X. Zheng. 2016. White Pitaya (Hylocereus
undatus) Juice Attenuates Insulin Resistance and Hepatic Steatosis in Diet-
Induced Obese Mice. PLoS ONE 11 (2): 1-14.
Wang, J.Q., Zou, Y. h., Huang, C., Lu, C., Zhang, L., Jin, Y., Lu, X. W., Liu, L. P. and J. Li.
2012. Protective effects of tiopronin against high fat dietinduced non-alcoholic
steatohepatitis in rats. Acta Pharmacologica Sinica 33: 791–797.
Wybraniec, S. and Y. Mizrahi. Fruit flesh betacyanin pigments in Hylocereus cacti. 2002.
Journal of Agricultural and Food Chemistry 50: 6086–6089.

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S3-3: Consumer Preference and Purchase Behavior for Dragon Fruit in


the Philippines

Dormita R. Del Carmen1*, Arjay A. Gerance1, and Elda B. Esguerra1,2

1Postharvest Horticulture Training and Research Center, College of Agriculture and


Food Science (CAFS), University of the Philippines Los Baños (UPLB), College, Laguna
Philippines 4031
2Institute of Crop Science, CAFS, UPLB, College, Laguna Philippines 4031

*Email address: drdelcarmen2@up.edu.ph

ABSTRACT

Dragon fruit (Hylocereus spp.), an introduced crop in the Philippines, is now gaining
fast acceptance both on the demand and supply sides due to its health and economic
benefits. Dubbed as a prestigious health food and a new money crop or revenue
earner for farmers, dragon fruit has been identified as among the minor crops for
development. Foremost in a market-driven approach to agricultural development is
an understanding of consumer’s preferences and purchase behavior so that
production will match market requirement. Assessing what consumers value in
dragon fruit and determining the factors affecting consumer acceptance of the
product can be the basis for supply chain improvements that will ensure its
sustainability, reduce losses, and provide greater profits to stakeholders. Results of
the survey of consumer preferences and purchase behavior for dragon fruit in Metro
Manila and CALABARZON region revealed that majority of the consumers value search
and experience attributes the most, both of which are called intrinsic attributes when
buying dragon fruit. Among the search attributes, consumers gave highest importance
to medium–sized fruit, freshness or green color of bracts, and blemish-free and shiny
peel, while for experience attributes, majority preferred sweet-taste and red colored-
flesh fruits. Consumers also put value to extrinsic or credence attributes such as
price, being organically-grown, and the fruit’s origin. However, consumers are not
getting the quality attributes they looked for. Some of their disappointments were the
lack of sweetness or too sour taste, not crisp flesh, and presence of blemishes and
decay on the fruit peel. Others also complained of the high price of dragon fruit.
These imply that stakeholders in the dragon fruit supply chain can undertake
improvements from production, postharvest handling, and marketing subsystems of
the chain in order to provide the right product at the right place and price for increased
consumer satisfaction. Ultimately, this will benefit stakeholders in the chain and
propel the development of dragon fruit industry in the country.

Keywords: consumer preference, supply chain improvement, dragon fruit

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INTRODUCTION

Dragon fruit, an introduced crop in the Philippines that used to be cultivated in


backyards has now emerged into a lucrative industry (Eusebio and Alaban, 2018).
Demand for the fruit is growing due to its nutritional and health benefits. It is rich in
Vitamin C, potassium, iron, calcium and magnesium, and the red variety has high
antioxidant properties. The fruit’s nutritive value has the potential to boost the body’s
immune system, hence, minimizing the risks of acquiring non-communicable diseases
such as cardiovascular diseases, hypertension, diabetes mellitus, anemia and even
cancer. Aside from being a health food, dragon fruit is also a profitable crop and has
been tagged by the Department of Agriculture-Bureau of Agricultural Research (DA-
BAR) as new money crop or revenue earner for farmers (Reynoso, 2012). It sells at
relatively high price ranging from PhP150-180 per kilo, thus, more and more farmers
are lured into dragon fruit cultivation. Production over the last six years saw a rapid
growth in both hectarage and volume, that is, from 181.9 hectares and volume of
256.45 metric tons in 2012, to 449.5 hectares and volume of 1,462.5 metric tons in
2017 (PSA, 2018).

Dragon fruit is a priority crop of Region I, but since its cultivation has already spread in
the Philippines’ three major islands--Luzon, Visayas, and Mindanao, it is currently
identified as among the minor crops for development. The development of any agro-
industry must be geared towards a market-driven supply chain orientation. The key to
succeed in this approach is first to get a better understanding of the consumers, such
as their characteristics and product preferences. Assessing the quality factors that
drive consumer satisfaction and repeat purchase behavior can provide basis in
identifying strategies or interventions on how the dragon fruit supply chain actors
would be able to meet the diverse consumers’ needs.

Quality has been defined as the degree of excellence of a product or its suitability for
a particular use (Abbot, 1999). However, Steenkamp (1997) sees quality as a subjective
concept that depends on the perception, needs, and objectives of individual consumer.
Hence, quality may not necessarily mean best product but one that meets its intended
purpose. The perception of quality therefore depends on the products’ objective
characteristics as well as the subjective value consumers attach to it. These quality
characteristics can be categorized into intrinsic and extrinsic attributes (Migliore et al.,
2017). Intrinsic attributes refer to the physical characteristics of the product which are
further classified into search attributes, such as freshness, color, and size, and
experience attributes such as taste, aroma, and ripeness (Badar et al., 2015). Search
attributes can be identified before purchase of a product while experience attributes
can only be identified after consumption. Extrinsic attributes, also called credence
attributes, do not constitute a physical part of the product but consumers consider
these as increasingly important cues in their purchase decision (Migliore, et al., 2015).
These include food safety, environment-friendly production, origin (Moor et al., 2014)
and price.

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The increasing trend in fruit and vegetable consumption worldwide due to consumers
growing consciousness for healthy lifestyle does not guarantee the sustainability of
any fruit industry. It is important to note that consumer preferences and consumption
patterns have also been greatly influenced by lifestyle changes brought about by
industrialization, urbanization, globalization, changes in work patterns, and
participation of women in the workforce (Goletti and Samman, 1999; Rolle, 2003).
As Badar (2015) cited, knowing what consumers value in a product can be complex
given the differences in consumer behavior, which is greatly influenced by individual
socio-economic background. Thus, identifying consumer segments is equally
important as that of determining quality requirements. Aligning supply chain
practices with consumer preferences and segments will bring increased customer
satisfaction and chain efficiency, which can help minimize product losses, increase
profits of chain actors, and propel and ensure the development and sustainability of
the emerging dragon fruit industry. Ultimately, this will contribute to food and
nutrition security of the country.

This study was therefore undertaken to get a full understanding of consumer


preference and purchase behavior for dragon fruit as a basis for supply chain
improvement and/or development. The specific objectives of the study were to:

1. Determine the characteristics and buying behavior of dragon fruit consumers;


2. Identify and classify the quality attributes consumers look for when buying dragon
fruit and their disappointments after purchase;
3. Determine socio-demographic factors affecting consumer preferences;
4. Identify consumer segments and their characteristics based on attributes
preferences; and,
5. Determine the implications of consumer preference and behavior for supply
chain improvement of dragon fruit.

METHODOLOGY

The study made use of structured survey questionnaire which was developed based
on the results of two Focused Group Discussions (FGDs) conducted within the
university campus. Results of FGDs aided in identification of important information on
dragon fruit quality attributes and purchase behavior that were incorporated in the
survey. The questionnaire was divided into two parts. The first part determined the
socio-demographic profile of dragon fruit consumers and the second part dealt with
consumers’ usage, purchase behavior, and quality/attribute preferences. Using
random sampling method, consumer surveys were administered in major market
centers, private and government institutions, and residential estates in Metro Manila
and CALABARZON region in the Philippines covering a total of 100 respondents.

Results were analyzed and tabulated using frequency counts and presented either as
tables or graphs. Statistical analysis such as correlation and cluster analysis through k-
means were also performed using SPSS version 23.

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RESULTS AND DISCUSSION

Demographic characteristics of respondents

From 100 consumer-respondents who participated in the study, 56% were from
CALABARZON and the remaining were from Metro Manila. Majority were female (64%),
within the 21-40 age group (66%), with college education, and with household size of
4 members and below (Table 1). The proportion of respondents who are married and
single is almost equal, and they are also more or less proportionately distributed with
respect to the first three income levels, ranging from below PhP150,000 up to
PhP500,000. Results would indicate that dragon fruit appeals to relatively younger
generations with relatively higher level of education, small household size, and to
almost all income group.

Table 1. Socio-demographic characteristics of 100 respondents, Philippines, 2017.


Characteristics Percentage
Place of Residence
Metro Manila 44.0
CALABARZON 56.0
Sex
Male 36.0
Female 64.0
Civil Status
Single 48.0
Married 46.0
Widowed/Separated 6.0
Age
20 and below 4.0
21-40 66.0
41-60 26.0
61 and above 4.0
Educational Attainment
Elementary 1.0
High School 16.0
College 70.0
Graduate 13.0
Annual Household Income (PhP)*
150,000 and below 31.0
150,001 to 250,000 26.0
250,001 to 500,000 25.0
500,001 and above 18.0
Household Size
4 and below 54.0
5-7 36.0
8 and above 10.0
* (US$=PhP50.00)

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Purchasing pattern and behavior

Reasons for buying

The main reason as to why consumers purchase dragon fruit is its health and
nutritional benefits (94%) (Figure1). It goes to show the increasing consciousness of
urban dwellers in the Philippines to include fruits in their diets for healthy lifestyle.
Many respondents said that dragon fruits aid in digestion and regular bowel
movement. The other reasons for buying the fruit such as flavor/taste (66%), personal
and family preferences (30%) would on the other hand, affirm its delectable taste. Still,
some consumers buy the fruit because they prefer locally-grown fruits than imported
ones available in the market and considered price as affordable (Figure 1). It can be
noted that some consumers are now putting importance to credence values such as
social responsibility attached to buying local fruit in order to support local farmers.

PERCENTAGE
100
90
80
70
60
50
40
30
20
10
0
Health and Personal or Flavor or taste Affordable Patronize Availability in Impulse
nutrition family price local fruits the market buying
preferences

Figure 1. Reasons for buying dragon fruit, 100 respondents, multiple responses,
Philippines, 2017.

Quantity purchased, frequency of purchase and source of dragon fruit

Dragon fruit is a novel fruit that is highly seasonal in the country. Fruiting season is
from May to December (harvest starts between 30-35 days after anthesis). The local
supply or production is still relatively low and so the price is higher, PhP150-180 per
kilo (about 2-3 pieces). Hence, majority of the respondents buy only 1-3 fruits (or less
than 500 g to 1 kg), at least once during harvest season (Table 2). However, since the
country imports dragon fruit, some are able to buy the fruit regularly on a weekly to
monthly basis.

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Thirty eight percent (38%) of the respondents buy the fruit in roadside stores, 32% in
public markets, and 26% in supermarkets. There were, however, 8% who harvest fruits
from own tree grown in their backyards. Topmost reasons for choice of source are
accessibility, convenience, and affordability (Figure 2).

Table 2. Purchasing patterns and sources of dragon fruit, 100 respondents,


Philippines, 2017.
Particular Percentage
Quantity purchased
Less than 500 g (1 piece) 37.0
500 g - 1.0 kg (2-3 pieces) 40.0
1.1 - 2.0 kg 18.0
2.1 - 3.0 kg 2.0
Others 3.0
Frequency of purchase
Once a week 5.0
More than twice per week 4.0
Once a month 13.0
At least once during season 40.0
Twice a year 21.0
Others 17.0
Source of dragon fruit
Wet market 32.0
Supermarket 26.0
Roadside stalls or fruit stands 38.0
Own garden/tree 8.0
Others 4.0

PERCENTAGE
60
50
40
30
20
10
0
Accessibility Regular supply Affordability Convenience Suki Offers good
quality fruits

Figure 2. Reasons for choice of source, 100 respondents, multiple responses,


Philippines, 2017

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Intrinsic and extrinsic quality attributes preferred by consumers

Majority of consumers are concerned with the intrinsic attributes or the physical
qualities of dragon fruit. By search attributes, consumers are particular with the size,
peel color and quality, and freshness (Figure 3a). Specific search attributes preferred
by consumers are medium-sized fruits, shiny and pinkish red color, free from blemishes
and decay, and with green bracts to indicate freshness. For experience attributes, they
are particular with the sweet-tasting fruit, red flesh color, and firm or crisp flesh (Figure
3b). Flesh color can also be considered a search attribute if consumers are familiar
with the variety of dragon fruit. Otherwise, consumers identify flesh color as their
preference only after purchase and consumption.

Fresh looking Taste


59 62

Peel quality 48 47 Peel color

36 62
Firmness Flesh color
68
Size

(a) Search attributes (b) Experience attributes

Origin

13
Organic
Price 26 production
46 3

Brand

(c) Credence attributes

Figure 3. Quality attribute preferences, intrinsic (a,b) and extrinsic (c), for dragon
fruit, 100 respondents, multiple responses, Philippines, 2017

Though credence variables are not yet major cues in consumers purchase behavior,
the growing consciousness for environment, food safety and social responsibility have
created attribute values to organic fruit production and origin. Dragon fruit is
perceived by consumers as organic or grown without the use of chemical fertilizer and
pesticides. Some consumers who buy the fruit frequently could also associate desired
fruit attributes to place of production, hence, they have certain preference for its
origin. Lastly, price has always been an important attribute considered by consumers
in their purchase decision.
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Consumer dissatisfaction from the purchased dragon fruits

For consumer’s purchase satisfaction, majority (66%) indicated that they do not get
the preferred quality of dragon fruit bought. Based on experience attributes, primary
reasons of disappointments are not desired taste, either too sour and with off-taste
(total of 82%), and fruits that are not crisp or has watery flesh (Figure 4). As to search
attributes, their complaints are fruits with blemish and decay on the peel, and too big
or too small size. Because of quality disappointments, 30% of the respondents are not
satisfied with the relatively high price they paid for the fruit. However, if quality of
dragon fruits will be guaranteed good, a total of 83% expressed willingness to pay for
a premium price of about PhP10 to 20 more per kg (Figure 5).

PERCENTAGE
60
53
50

40
29 30
30
23 23
20
20
11
10

0
Not sweet Sour or with Not fresh or With peel With decay Too big or High price
off-taste too watery blemishes small size

Figure 4. Disappointments from dragon fruit purchase, 100 respondents, multiple


responses, Philippines, 2017.

16%

45%

38%

Yes (10.00-15.00 more) Yes (20.00 more) No

Figure 5. Willingness to buy premium quality dragon fruit, 100 respondents,


Philippines, 2017.

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Determining Market Segments for Dragon Fruit

Correlation between consumer characteristic and attribute preference

A simple correlation was done to determine how demographic characteristics relate


to or affect consumer attribute preference for dragon fruit. Table 3 shows that age,
education, household income are significantly associated with consumers preference
for certain specific dragon fruit attributes. The results are in congruence with the
findings of Stables (2001), and Yen and Tan (2012) in their studies on fruit and
vegetable consumption. Age is positively correlated only with the perception that the
fruit is organic, meaning that across all ages and perhaps, with age, consumers’ are
now choosing produce that are grown organically because of their growing awareness
on the ill effects of synthetic chemicals on their health. On the other hand, education
is correlated with price. Household income is correlated with freshness, overall peel
quality, firmness, and price. These would imply that income is a major factor in the
attribute preference value, that could greatly affect consumers purchase decision of
dragon fruit.

Table 3. Correlations between selected demographic characteristics and dragon fruit


attributes, 100 respondents, selected urban centers in the Luzon, Philippines, 2017.
Socio-demographic Characteristics
Quality Attribute
Household
Preferences Age Education Household Size
Income
Dragon Fruit
Freshness -0.025 0.169 0.279** -0.075
Peel Color 0.045 -0.037 0.040 -0.052
Size 0.053 -0.105 -0.022 -0.032
Peel Quality 0.034 0.075 0.235* -0.105
Taste -0.113 0.163 0.075 -0.087
Flesh Color 0.098 -0.005 -.029 -0.037
Firmness -0.015 0.096 0.205* -0.104
Production Systema 0.212* 0.045 0.027 -0.151
Price -0.161 0.220* 0.200* 0.125
a
Organically-produced
* Correlation is significant at 0.05 confidence level
** Correlation is significant at 0.01 confidence level

It can also be inferred that as household income increases, consumers become more
discriminating and looked for several attributes, both search and experience, including
price, to get maximum satisfaction or utility. Household size is not significantly
correlated with attribute preference value for dragon fruit. Results of correlation
analysis can be used as basis for consumer stratification for better fruit positioning.

Consumer segments
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Three segments were identified using cluster analysis. These are the health-conscious,
aesthetic-conscious/price-sensitive, and size-sensitive groups (Table 4). The first
segment is characterized mostly by married individuals in the older age group (61 years
old and above) with emphasis on credence attribute preference such as organically-
produced dragon fruits. Additionally, consumers in this segment are less affected by
the search and experiential eating qualities of the fruit.

Those in the aesthetic-conscious/price-sensitive group are primarily composed of


married individuals in the younger age group (21 to 40 years old) with higher income
levels (PhP250,000 and above). As they buy with their eyes, as indicated by their
preference on freshness (bracts are still green), flesh color (red-fleshed fruits) and peel
quality attributes (freedom from defects, decay, and blemishes), and price
consideration. Lastly, segmented consumers in the size-sensitive group are comprised
of younger consumers (21 to 40 years old), mostly single and in lower income levels
(PhP150,000 and below). The overall product quality preferred by this segment are
those ranging from medium to large red-fleshed fruits and an overriding taste of
sourness than sweetness. Information on these consumer segments could provide
another basis for market positioning of dragon fruit by demographic characteristics.

Table 4. Consumer segments based on cluster analysis,100 respondents, Philippines,


2017.
Aesthetic-conscious/
Health-conscious group Size-sensitive group
Price-sensitive group
(n=32) (n=33)
(n=35)
Quality attribute preferences
No particular size No particular size Medium to large fruits
No taste specification Balanced taste of More sourness than
sweetness and sourness sweetness
Either red or white fleshed Red-fleshed fruits Red-fleshed fruits
No preference on freshness Preference on freshness No preference on freshness
indicated by green bracts
Moderately shiny peel Moderately shiny peel Slightly shiny peel
Particular on peel quality Particular on peel quality No peel quality specification
(free from defects and (free from defects and
blemishes) blemishes)
Slightly firm fruits Moderately firm fruits Slightly firm fruits
Prefers organically-produced Either organic or Either organic or
conventional conventional
Not price conscious Moderately price Not price conscious
conscious
Socio-demographic characteristics
Majority are female Majority are male Majority are female
Majority are married Majority are married Majority are single
Older age group Younger age group Younger age group
(61 years old and above) (21 to 40 years old) (21 to 40 years old)

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College level College level High school to College level


Lower to middle income level Middle to higher income Lower income level
(PhP150,000 to 250,000) level (PhP150,000 and below)
(PhP250,000 and above)
Small household size Small household size Small household size
(below 4 members) (below 4 members) (below 4 members)

Implication for supply chain improvements

The information obtained in this study on consumer attributes value for dragon fruit
can be an important input in identifying possible improvement opportunities along the
supply chain including priority researchable areas to pursue. Consumer preferences,
which mostly considered intrinsic fruit attributes can be met by making changes
foremost in the production, including input, and postharvest handling systems of
dragon fruit.

Quality improvement will need to start in the production system of the fruit. This
includes the identification of existing varieties planted and evaluation of quality
characteristics in different production areas and systems. Appropriate varieties could
be selected from existing ones or new varieties may need to be developed to meet
consumer preferences for size and taste. The next step is to undertake improvements
in the cultural management practices such as fertilizer application and pest
management. The application of fertilizer like potassium that is known to enhance fruit
sweetness, and use of integrated pest management (IPM) to produce fruits that are
free from insect damage and decay while assuring consumer safety are some of the
technologies that can be introduced.

There may also be a need to undertake research on maintaining greenness or


freshness of bract by temperature management and use of edible wax coating.
Maintaining firmness and extending shelf life may address slowing down and
regulation of fruit ripening, and one technique that can be tested is the use of 1- MCP
(methylcyclopropene). Establishing the appropriate maturity indices is necessary
because eating quality and flavor, such as the balance of sweetness and sourness, is
greatly determined by its maturity. Being a novel fruit with seemingly hard or leathery
peel, dragon fruit may not be handled carefully but is also highly susceptible to
mechanical damage, hence, simple handling protocols may also need to be established.

Equally, information on various consumer segments based on the association between


demographic characteristics and dragon fruit attributes, and, based on cluster analysis
can provide basis for market positioning. The market may be segmented according to
attribute preferences of consumers such as those whose major need is to get the
desired size and shiny peel of dragon fruit, and those that paid much attention to taste
with balance of sweetness and sourness. Positioning the fruit in the market should
also consider demographic characteristics of consumers such as age, education and
especially, household income that are significantly correlated with their fruit attribute

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preference.

CONCLUSION

Filipino urban consumers still put greater value on intrinsic attributes of dragon fruit
specifically on physical qualities such as freshness of bract, size, good peel quality and
color, without damage, decay, and blemish, and on balance of sweetness and sourness.
However, majority of them were disappointed for not getting the desired attribute
preferences. Based on preference attributes, three consumer segments were
identified. The health-conscious group emphasized importance to organic fruit
production while the aesthetic-conscious/price-sensitive group gave importance to
overall peel quality, bract freshness, and flesh color. Those in the size-sensitive
segment gave highest preference to medium and large-sized fruits. Consumer
attribute preferences were significantly correlated with demographic characteristics
namely, age, education and household income. Based on the information obtained in
this study, changes or improvements along the different points in the supply chain
from production, postharvest handling and marketing and concomitant priority
research areas can be undertaken to satisfy consumer demand for a better quality
dragon fruit at reasonable price. Consequently, this would translate to increased
market demand from satisfied consumers from the various market segments, reduced
losses and chain efficiency which could propel the development of the emerging
dragon fruit industry.

ACKNOWLEDGMENT

The authors would like to thank the Philippine Department of Agriculture–Bureau of


Agricultural Research (DA-BAR) for funding this as part of the project titled “Quality
Systems Improvement of Dragon Fruit, Soursop (Guyabano) and Apple Guava through
Value Chain Analysis and Management”.

REFERENCES

Abbot JA. 1999. Quality measurement of fruits and vegetables. Postharvest Biology
and Technology 15: 207-225.
Badar H, Ariyawardana A, Collins R. 2015 Capturing consumer preferences for value
chain improvements in the mango industry of Pakistan. International Food and
Agribusiness Management Review, 18(3), 131-148.
Eusebio JE, Alaban MS. 2018. Current status of dragon fruit and its prospects in the
Philippines. FFTC Agricultural Policy Articles. Retrieved from
http://ap.fftc.agnet.org/ap_db.php?id=876

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Hunter JP. 2014. Health benefits from foods and spices. Library of Congress.
Washington DC USA. 124-126.
Migliore G, Farina V, Tinervia S, Matranga G, Schifani G. 2017. Agriculture and Food
Economics Open Access 24(5), 1-12.
Migliore G, Galat A, Romeo P, Cresclimanno M, Schifani G. 2015. Quality attributes of
cactus pear fruit and their role in consumer choice: the case of Italian consumers.
British Food Journal, 117(6), 1637-1651.
Moor U, Moor A, Polma P, Heimaa L. 2014. Consumer preferences of apple in Estonia
and changes over five years. Agricultural and Food Science, 23, 135-145.
Rolle RS. 2003. Towards an integrated postharvest initiative: a synthesis of the
highlights of the five regional workshops on post-harvest. FAO-GFAR Workshop
Synthesis. Rome, Italy, 1-55.
Stables G. 2001. Demographic, psychosocial and educational factors related to fruit
and vegetable consumption in adults. PhD Dissertation. Virginia Polytechnic
Institute and State University, United States.
Steenkamp JB. 1996. Dynamics in consumer behavior with respect to agriculture and
food products. In: EAAE Seminar on Agricultural Marketing and Consumer
Behavior in Changing World. Wageningen, Netherlands.
Yen S, Tan A. 2012. Who are eating and not eating fruits and vegetables in
Malaysia? International Journal of Public Health. Springer: Swiss School of Public
Health, 57(6): 945-951.
Zimmermann KL, Van Der Lans IA. 2009. The paradigm of consumer-driven and
responsive supply chains: An integrated project approach. J Hort Sci. and
Biotechnol. ISAFRUI Special Issue, 7-12.

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S4-1: Promotion of Agricultural Products via Cross-Border E-Commerce


– Wonderfulfood Experiences

Maggie, Mei Chuan Chen

The Chief Executive Office of Wonderful Food (Imperial Food Ltd., Corp. Taiwan),
Chairman of All Food Ltd. Corp. Hong Kong

E-mail: maggie.chen@wonderfulfood.com.tw

ABSTRACT

Nowadays, people are used to purchase via e-commerce websites and to receive the
goods by home delivery service. Window shopping is now done through “fingers”
shopping. Internet makes the consumers’ behavior change and bossing the internet
business models. It makes no limitations of time and space. How does e-commerce
business impact the fresh fruits business cross borders? Let us see how the company
called Wonderful Food can promote Taiwan fresh fruits via the internet to the foreign
end consumers.

INTRODUCTION

Wonderful Food is a company which is focused on promoting Taiwan agricultural


products, such as fresh vegetables and fruits, meat, seafood and so on, and it prompts
and sells the products via e-commerce locally and internationally. Over 85% of its sales
revenue is through virtual e-commerce. The 15% of sales revenue is from its two
physical stores and consulting service. Its revenue from overseas is about 16%,
its significant figure is the 95% from single end consumers from Hong Kong, Macao,
Singapore, Malaysia, not through few traders. There are over hundreds of farmers who
join and participate n Wonderful Food’s cross border e-commerce business

How do local fresh fruits and vegetables go to the overseas market? As seen in the
graph below, the goods pass through the farmers, packing house, export traders and
sales, import traders and sales, wholesalers, channels, retailers, and the end
consumers. Because of the many channels, the production cost becomes high and the
shelf-life of products is almost lost.

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The various market channels and intermediaries in a way limit the full development
of the overseas market for Taiwan’s agricultural products.

 Limitation of product: the export products are selected by few traders.


 Unable to reach the end customers: the market information is collected by the
oversea retails, not from the original source point but from the export side.
 Difficulty to reduce the multilayer of sales and cost: the more players there are
in one sales cycle, the higher the cost.
 Difficult to ensure the quality of fresh agriculture products: "straight and direct"
might be a way to enhance the freshness and quality of the products.

E-commerce helps to reach the end consumers

Thanks to the Internet. It makes no limitation of borders, space, and time. Nielsen’s
report shows that on average 57% of online shoppers who make purchases are from
overseas retailers.

Having an overseas business, doesn't mean one has to open a store or set up an
international warehousing to fulfill the business. E-commerce can help to reach the
end consumers via online advertising or social media abroad. And then using the
advantages of e-commerce to make your consumer to become your marketer by social
media to enlarge the internet exposure. Through the information transparency that
flows through the internet, finding foreign business partners is not much difficult. The
end consumer might be the hotel food and grocery purchase manager, retailers and
so on. The end consumer might be attracted and driven by your profit share program
to sell your product to his/her friends’ circle. Once you could reach directly to your end
customers and partners, eventually you would be advised of what are the selected
products that fit your customer needs and to grow the business of your target
market. E-commerce is just the interface to the business. The sustainable truth and
knowhow, no matter physical or virtual, local or international, is to provide a good
product (deal), with good quality, and good service.

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The Wonderfulfood.com experience

Wonderful Food started as an e-commerce business in Taiwan in 2011. So far it has


already cooperated with over 1000 farms. It began with the promotion of fresh and
traceable fruit s and vegetables and with customers' inputs to expand the product
category to meat, seafood, egg, milk and so on. From 2017, Wonderful Food started
its own brand products, such as using local agricultural raw materials to produce
soymilk, chicken-essence and even having contracted farms to raise hens with specific
formula to make folate eggs. Wonderful Food slowly developed its strong e-
commerce business know how and it expanded it e-commerce business to Hong Kong
and integrated the farmers supply chains in 2017. Through the integration of the air
freight and local logistics, consumers could receive the fresh fruits from the farm
directly or have a box with a variety of vegetables delivered at their doorstep.

The key factor of cross-border e-commerce is to find the end consumer first and
receive the orders. Then there is no shelf time issues and no sales multilayer
transactions. Receiving direct orders from consumers ensures fresher products at
cheaper prices.

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CONCLUSION

Through the practice of cross-border e-commerce (refer to the graph below) e-


Commerce breaks the borders to mark the products’ value up and create a shared
value. No matter the farmer brand, platform brand, even the country brand could be
applied to a cross border e-commerce model to promote the local agriculture industry.
The internet is a trend and e-commerce is a business interface. But remember only
that as long as the company can continue fulfilling the customers' needs, the business
could be sustainable on a long-term basis.

REFERENCES

https://www.spaceshopcommerce.com/blog/top-ecommerce-stats-for-2020
https://www.shopify.com/enterprise/global-ecommerce-statistics#6
https://agrstat.coa.gov.tw/sdweb/public/trade/TradeCoa.aspx

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S4-2: Public Private Partnership in Agriculture: The Mitagri’s


Perspectives

Chung-Hsiu Hung

Chairman, Mitagri Co., Ltd.

ABSTRACT

The agriculture industry is typically and generally a more fragile and vulnerable sector.
All the governments of the developed and developing countries are doing their best
to offer their concerted support to the sustainable development of the agriculture
industry. However, governmental monetary measure is always limited in terms of
resources. It is very important for the government to organize and coordinate all of the
social resources together. PPP, or the public private partnership could be a useful and
helpful mechanism for the government to achieve the goals of macro synergy. In other
words, PPP could act as a steppingstone for public, private sectors, and as a very
competent platform between government and non-governmental organizations.
Taiwan is a small island country with limited and scarce natural resources. Typically,
there exists a small-scale farming situation. Since Taiwan agricultural industry is a
small-scale farming one, the system integration of PPP on agricultural development is
necessary and inevitable nowadays. Mitagri is a young, innovative and newly
established small and medium agricultural export-oriented enterprise in Taiwan. Its
non-profit trading mission is highly involved with ministerial authorities on agricultural
trade issues. Since Mitagri is highly active and staminal, it could be the appropriate
platform on PPP in agriculture.

INTRODUCTION

Generally, when it comes to competitiveness and characteristics, compared to


secondary or tertiary industry, the agriculture industry is typically a more fragile and
vulnerable sector. So, no doubt, in the past years, it is absolutely not only the
governments of developed countries but also those governments of developing
countries s which did their best to offer their concerted support to the sustainable
development of the agriculture industry.

What kinds of support were offered by the governments? Were they in kind or in cash?
It seems that people always welcome those governmental support in cash. However,
governmental monetary measure is always limited in resources. And giving in the form
of goods or services to people by governments is not easy and appropriate to match
the demand of people perfectly and completely. Besides, it is doubtless that in the long
run, the governmental resources are eventually limited. So, it is particularly important

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for the government to organize and coordinate all of the social resources together. PPP,
or the Public Private Partnership could be a useful and helpful mechanism for the
government to achieve the goals of macro synergy. So, it is necessary to combine all
the individual power of a group together, and then can create the macro synergy and
profound effectiveness.

PPP could be a steppingstone for the public and private sectors, and as a very
competent platform between government and non-governmental organizations; but
strictly not becoming a stumbling block for social communities.

According to the International Monetary Fund or IMF “Public Private Partnerships refer
to the private sector’s financing, designing, building, maintaining and operating
infrastructure assets which is traditionally provided by the public sector.”

“Public Private Partnership means an agreement between a government or statutory


entity or government owned entity on one side and a private sector entity on the other,
for the provision of public assets and\or public services, through investments being
made and\or management being undertaken by the private sector entity, for a
specified period of time, where there is well-defined allocation of risks between the
private sector and the public entity and the private entity receives performance linked
payments that conform (or are benchmarked) to specified and pre-determined
performance standards, measurable by the public entity or its representative.

PPP, Public Private Partnership

PPP could be a concerted bridge between government and non-government entities.


Its flexibility and multi-functionality are the core and supreme competence of a
successful platform. Besides, to achieve the pure and brilliant objective of PPP is also
to simultaneously further cement social good relations. The so-called PPP has an oral
or written contractual agreement between a public agency (federal, state, or local) and
private sector entity. Through this agreement, skills, and assets of each sector (public
and private) are shared in delivering a service of facility for use of the public. Each
party shares risks and rewards potential in the delivery of the service and\or the facility.
The private partners could be local or international and may include businesses or
investors with technical or financial expertise relevant to the project.

PPP broadly refers to long term, contractual partnership between public and private
sector agencies, specially targeted towards financing, designing, implementing, and
operating infrastructure facilities services that were traditionally provided by the
public sector.

PPP may also include non-government organizations (NGOs) and\or community –


based organizations (CBOs) who represent stakeholders directly affected by the
project. Effective PPP recognizes that each of the partners – the public and the private
sectors have their comparative advantages in performing specific tasks.

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The government’s contribution to a PPP may take the form of capital for investments
(available through tax revenue), a transfer of assets, or other commitments or in-kind
contributions that support the partnership. The government also provides social
responsibility, environmental awareness, local knowledge, and an ability to mobilize
political support. The private sector’s role in the partnership is to make use of its
expertise in commerce, management, operations, and innovation to run a business
efficiently. The private partner may also contribute investment capital depending on
the form of contract. The structure of partnership should be designed to allocate risks
amongst the partners based on their capabilities to manage those risks and thus,
minimize costs while improving performance.

In a PPP mechanism, each partner, usually through legally binding contracts or some
other mechanism, should agree to share responsibilities related to the
implementation and\or operation and management of a project. This collaboration or
partnership is built on the expertise of each partner that meets clearly defined public
needs through appropriate allocation of Resources, Risks, Rewards, Responsibilities,
Common element and so on.

Furthermore, the common elements of PPP include a contract or arrangement; the


provision of public infrastructure or services; the transfer of risks from the public
sector to the private sector; a reward system based on performance or output; and a
focus on services delivery.

Taiwan’s agricultural production

Taiwan is a small island with limited and scarce natural resources. It covers an area of
around 36,000 square kilometers. And it spans temperate, subtropical and tropical
climate zones. Nearly two-thirds of the island are mountainous and arable lands
mostly located on the Western coast. Typically, there exists a small-scale farming
country situation in Taiwan.

Over the past years, the percentage of Taiwan’s GDP represented by agricultural
production has declined in line with industrial transformation. But data shows
agricultural output is still growing in value terms (Table 1).

Table 1. Agriculture as part of Taiwan’s GDP


Year Total GDP Agriculture
(Billions of NT$) Output Percentage of GDP
(Billions of NT$)
1952 14.57 5.23 35.90
1972 319.96 38.56 12.05
1992 5,502.80 189.85 3.45
2002 10,411.64 188.44 1.71
2012 14,077.10 249.17 1.78
2015 16,687.86 295.92 1.78

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2017 17,431.15 300.40 1.72


2018 17,793.13 286.72 1.60
Source: Agricultural Statistics Yearbook, Council of Agriculture, Executive Yuan

In the past decades in Taiwan, owing to the brilliant economic development on


advanced industrialization and the modern urbanization, the country experienced a
sharp transformation on diversified forms of land utilization. There's a lot of
competition among all of the industrial sectors. Agrarian and non-agrarian industries
have been striving for scarce land resources up to now. These two macro sectors are
in competition with each other on social and natural resources including land and
human resources. The size of farmlands has slowly decreased and hectares per farming
household stabilized around 1.

Table 2. Information of farmland utilization

Full-time
Hectares per
Farmlands Farming Farming households
Year farming
(ha) households Percentage of
Number household
total
1981 900,062 847,997 148,378 17.50 1.06
1991 884,443 824,256 117,988 14.31 1.07
2001 848,743 726,575 144,421 19.88 1.20
2003 844,097 724,949 159,280 21.97 1.16
2005 833,176 721,418 177,449 24.60 1.15
2011 808,294 777,473 194,827 25.06 1.04
2013 799,830 780,307 244,814 31.37 1.03
2015 796,618 784,490 260,211 33.17 1.02
2017 793,026 784,490* 260,211* 33.17* 1.01*
2018 790,680 775,310 257,717 33.24 1.02
Source: Agricultural Statistics Yearbook, Council of Agriculture, Executive Yuan

In terms of overview of Taiwan’s agricultural imports and exports, imports have been
relatively stable around US$15 billion per year, and exports have been averaging
around US$5 billion annually. That gives an average negative annual trade balance for
agricultural products of around about US$10 billion. In other words, Taiwan could be
regarded as a net food-importing country (Table 3).

Table 3. Historical import and export values Unit: US$ billion

Imports Exports Trade balance


Year Agricultural Agricultural Agricultural
Total Total Total
products products products
2000 140.0 7.6 148.3 3.3 8.3 -4.3

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2001 107.2 6.9 122.9 3.0 15.6 -3.8


2003 127.2 7.8 144.1 3.2 16.9 -4.5
2005 181.6 9.4 189.4 3.6 7.8 -5.8
2011 280.6 14.9 291.9 4.7 11.3 -10.2
2013 269.1 14.8 288.0 5.1 19.0 -9.7
2015 227.8 14.5 264.3 4.9 36.5 -9.6
2017 258.4 15.1 291.4 4.9 33 -10.2
2018 284.7 15.8 334.0 5.4 49.3 -10.4
Source: Agricultural Statistics Yearbook, Council of Agriculture, Executive Yuan

Need of Mitagri in agriculture

As mentioned previously, Taiwan is a small-scale farming country with scarce natural


resources and is a net food-importer. So, in order to overcome the dilemma of
agricultural development, it is necessary for public and private sectors to integrate and
deploy various resources efficiently and effectively. To deal successfully with an
operational difficulties and management problems on the agricultural industry, there
is a need to set up a feasible and practical mechanism for achieving cooperative
partnership on agricultural issues between public and private sectors.

Besides, when it comes to liberal capitalism, the concept of competition is a major and
core tenet of market economies and business. Essentially and traditionally, the
agriculture sector is also one of the various economic industries. So, the issues of
competition on the agricultural industry are inevitable and natural.

To sum up, to create a more active and multifunctional platform for combining PPP in
agriculture is an urgent task. And who will be the appropriate role to take over the
leadership on PPP issues in agriculture in Taiwan? The PPP in agriculture, is significantly
an interesting issue deserving of attention.

Mitagri is a very young and newly agricultural export-oriented enterprise in Taiwan. It


is a non-profit trading mission that is highly involved and is supervised by the Council
of Agriculture. The Mitagri always intermingles with ministerial authorities on
agricultural trade issues. Whether it is small and medium enterprise, it is very
innovative, active and staminal. Mitagri could be the stimulus to agricultural trade
development in Taiwan. Particularly, since Taiwan’s agricultural industry is typically on
a small-scale farming basis. The challenge is to make agriculture and its allied sectors
more profitable, and to ensure that rural population has a larger income to share. The
role of technology in meeting the challenges of agricultural development is critical. So,
there is a need for new technologies with potential to provide holistic solutions, and
the issues that relate to their dissemination and commercialization. Innovation and
knowledge are critical factors for achieving sustainable competitiveness. The Mitagri
becomes involved in partnership to gain access to knowledge and technologies and to
develop innovations that otherwise would be more costly for farmers to obtain or
develop.
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The growing complexity of technologies, the knowledge necessary to develop chains


and segments, and the scarcity of resources mean research cannot be carried out in
isolation, whether by science and technology organizations or enterprises from the
production sector. The Mitagri’s teamwork increases the quality and relevance of the
results and the synergic effects that occur when it collaborates with actors who have
knowledge and resources that farmers do not.

CONCLUSION

The system integration of PPP in agricultural development is necessary and inevitable


nowadays. Despite the acceptance of the PPP concept within the country, and progress
with PPP projects at the national level, the PPP projects are yet to emerge in Mitagri.
The challenges to Taiwan’s agriculture include aging farmers, food security, small-scale
farming, trade liberalization and climate change. The idea of PPP in general is
theoretically appealing but its practical implementation in Taiwan is a challenge but
with Mitagri, it will lead to success. Taiwan also assists in sustainable development and
regional agricultural prosperity through cooperative projects with other countries.

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S4-3: The Role of Stakeholders and Its Relationship in the Export-


Oriented Dragon Fruit Value Chain in Vietnam

Ngo Duc Minh1, Nguyen Hong Son1,2

1Vietnam Academy of Agricultural Sciences (VAAS), Vietnam


2Southern Horticulture Research Institute (SOFRI), Vietnam

E-mail: minhnd.162@gmail.com

ABSTRACT

Dragon fruit is one of the large and fast-growing agricultural sub-sectors in Vietnam.
With rapid expansion in production by the late 1990s, Vietnam soon became the
world-leader in dragon fruit production and exports. Dragon fruit has always been the
largest product category among Vietnam’s fruit and vegetable (F&V) exports with
export turnover of US$1.1 billion, accounting for 30% of total agro-commodity export
sales in 2018. Both export volume and sales have steadily grown and export turnover
has rocketed 20-fold in the last eight years. The development of dragon fruit value
chain played a crucial role in remarkable growth of the dragon fruit agricultural sub-
sector in Vietnam over the past 30 years. Along the export-oriented dragon fruit, the
Vietnamese chain actors, enablers and supporters are mainly located in the upstream
and (early) midstream parts of the value chain. Their participation downstream,
specifically wholesaling and retailing systems in foreign markets, is modest due to
limited investment capacity and business relationships. The export-oriented dragon
fruit value chain of Vietnam consists of seven major chain actors (input suppliers,
smallholder farmers, cooperatives, exporters’ farms, collectors, fresh fruit exporters
and processing exporters). The role of chain enablers at the central level is to set
production, trade and quality management policies, while their respective offices and
provincial subsidiaries implement the policies. The chain supporters include business
associations, providers of support services such as packaging, transportation and
logistics. However, the local dragon fruit value chain is dominated by small and
medium enterprises (SMEs). Most exporters are of modest size in terms of labor,
investments and sales. Well-known large companies in fruit processing and exporting
have yet to establish sizable dragon fruit businesses. The relationship between those
stakeholders is mainly on the marketing aspect.

Keywords: dragon fruit, Vietnam, export, value chain, development

INTRODUCTION

The production and export of fruits and vegetables in Vietnam has increased

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significantly during the last decade in both scale and categories. Fruit production has
also increased impressively from about 2.1 million tons in 2001, reaching 10 million
tons in 2018 (DCP-MARD, 2019). Many Vietnamese fruits have a large production
volume that ranked in the top 10 of global fruit production in 2014, such as dragon
fruit, lychee, longan, coconut. The export value of Vietnamese fruits in recent years
has significantly increased in terms of number and value. The export value of Vietnam’s
fruit has grown rapidly over the last two decades, from about US$ 56.1 million in 1995,
reached to US$ 3.1 billion in 2018, increased by 50 times as compared with 1995.
Although fruit exports have increased considerably in recent years, the total export
value remains modest and is disproportionate to the true potential of the fruit sector
(Vietnam Customs, 2019).

Dragon fruit had been long imported into Vietnam in the beginning of the 20th century.
Dragon fruit production, on the other hand, has expanded rapidly in Vietnam since the
1990s. The opportunities of Vietnam dragon fruits include the early paid attention to
the breeding and technical research leading to high quality variety and productivity as
well as competitive price which was easily accepted by the market. Dragon fruit is a
perfect crop for Vietnamese farmers and exporters, given its profitability, ease to grow,
climate resilience, all-year-round supply capacity, and high rate of fresh whole fruit
qualifying for export. Dragon fruit is the largest and fastest growing single product
category among Vietnam’s fruit and vegetable exports with US$ 1.1 billion export
turnover in 2018 and a dramatic average growth rate per year of 104% since 2010.
Vietnamese dragon fruit - now ranks first in Europe, China, and Hong Kong, and is very
well-known in Asian communities in the US (Vietnam Customs, 2019).

In Vietnam, the issues with respect to the dragon fruit value-chain are multi-faceted.
The Vietnamese dragon fruit that is marketed is the world’s leading supplier of dragon
fruit (with 70-80% of productivity goes to China through the border-trade market
channel) owing its success to Vietnam’s favorable weather, all-year-round supply
capacity, diverse emerging varieties (DCP-MARD, 2019). However, the challenge for
Vietnam is under pressure to improve quality when stricter quality requirements,
technical regulations and inspections are rising in most key international markets,
including China. In addition, while the dragon fruit is contributing its largest share of
export turnover of F&V sector in Vietnam, it is also important to understand the
competitiveness and profitability of production with respect to its regional and global
competitors (China, India and other countries in Central and South America and Asia).
Other challenges may come from constraints of existing quality infrastructure (testing,
certification services) and farming practices management.

STAKEHOLDERS IN THE VALUE CHAIN FOR EXPORT-ORIENTED DRAGON FRUIT

Vietnamese chain actors, enablers and supporters are in the upstream and (early)
midstream parts of the value chain. Their participation downstream, specifically
wholesaling and retailing systems in foreign markets, is modest due to limited
investment capacity and business relationships. Analysis of the chain actors,

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influencers and supporters in Vietnam export-oriented dragon fruit value chain is


presented below (Figure 1).

As this paper focuses on oriented-export dragon fruit chain in Vietnam so only local
actors and agencies are discussed. Information on the actors in the international
market (international processors, wholesalers and retailers) is not provided here. The
domestic market wholesalers and retailers are not either discussed herein below.

CHAIN ACTORS

Suppliers

There are diverse suppliers, including small and large companies, wholesalers and
retailers, to distribute pesticides, fertilizers, machinery and equipment, packaging
materials, logistic services, etc. to dragon fruit value chain actors. As dragon fruit is a
valuable crop for export, the business is so exciting with a sort of medium to high
quality materials and services. Exporters often carry a range of standard agricultural
inputs to lend their linked farmers at the beginning of the cycle to ensure the fruit
quality. It is interesting to note that variety is not much supplied as a business. Up to
now, Vietnam’s Southern Fruit Research Institute (SOFRI) has developed and
introduced all dragon fruit varieties for commercial production in the country. When a
new variety with advanced features is created, for example deep purple flesh, yellow
skin white flesh, higher disease resistance, the research institution introduces it free
or almost free of charge to farmers and exporters for mass testing and production. A
large exporter has paid SOFRI in advance to create a special variety to replant its areas,
but this is a rare case. As soon as dragon fruit varieties are put in commercial
production, they are easy to reproduce from farm to farm by giving a piece of the plant
that could last for many years.

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Figure 1. The export-oriented dragon fruit value chain in Vietnam

Source: Developed by authors based on field survey

Smallholder farmers

There are three types of dragon fruit producers in Vietnam: smallholder farmers,
cooperatives and exporters. Similar to other crops, dragon fruit smallholder farmers
dominate in number, area and total volume of production simply because they hold
the land use right in agriculture. It is roughly estimated that there are 50,000
smallholder farmers cultivating on average 0.8ha per farmer household. While the
initial investment is quite capital intensive, the production is labor intensive since the
plant’s biological features and fruit shape make mechanization almost impossible. The
most labor intensive stages are trimming (branch, flower, young fruit) and tail shaping
(stroking the tail of the young fruit to make it in good shape when matures; this is to
make the fruit good looking, mainly for the Chinese and Chinese-origin consumers). It
requires two fulltime workers from every family to take proper care of a hectare of

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dragon fruit. Therefore, dragon fruit farmers mostly work full-time on their orchards,
unlike other crop producers who grow quite a few crops and may keep animals at the
same time. The plant is not intercropped with other crops.

Due to the easy requirements of the dominating Chinese market, the vast majority of
smallholder farmers does not keep farm records nor follow any good agriculture
practice. Intensive efforts of the government to introduce the local certification
program VIETGAP in the pivotal provinces of Binh Thuan, Tien Giang and Long An have
not been supported by significant market demand and thus induced little change. Binh
Thuan DARD officers estimate that only 50% of VIETGAP trained farmers apply for
certification for the first time, and half of them do not come back for the second
certification, although the whole process from consulting to certification is free to
individual farmers. Only 30 % of the total area in Binh Thuan and 4 % in Long An and
Tien Giang combined have VIETGAP certificates. Smallholder farmers do not either
apply GlobalG.A.P. or traceability code unless they are supported, and commanded, by
the cooperatives or exporters who can purchase at a higher price for the international
markets. 92 % of production area in the three pivotal provinces have the PUC for China,
only 8 % have the PUC for other markets.

Cooperatives

Since dragon fruit is heavily export-oriented and vulnerable to price fluctuations,


farmers can gain on economies of scale that allows for more effective harvest cycle
spreading, application of farming and quality control processes. They could also join
the production area and volume for more regular supply and higher negotiating power.
The uprising trend for cooperative development is partly driven by farmers’ need for
horizontal (cooperation among farmers) and vertical (cooperation between farmers
and other value chain actors) linkages. The trend is fueled by buyers’ preference to
source from more professional suppliers, who should have a legal status, legitimate
trading papers, and sizable production. Around 40 dragon fruit cooperatives are
involved in dragon fruit production in Binh Thuan, Tien Giang and Long An. Their
members are smallholder farmers who own and cultivate their own lands. They join
forces in production and sale by (somewhat) following an agreed production process
and farming plan, and by selling (a proportion of) the product through the
cooperatives. Members are instructed, assisted and monitored by an experienced
farmer or a technical staff employed by the cooperative to comply with the production
process and quality requirements of the target buyers. They are also cross-monitored
by other members to minimize the risk of failure for everyone. Some cooperatives have
upgraded to include collection, transportation and/ or pre-processing functions to add
value and expand the business, and thus can better control the quality.

Dragon fruit cooperatives often get aligned with and buy from non-member farmers
and farmer groups because they can hardly ensure regular supply for buyers from own
area. These non-members also have to provide the same quality specifications and the
cooperatives often checked and/ or test every purchase before harvesting for the
export order. Cooperatives usually put in place some type of certification and/ or

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traceability system to meet the demand of the target export market. GlobalG.A.P. for
the European markets, the PUC for China, or the PUC for the North American markets
(the US and Canada) were most often reported during the field survey. They may pro-
actively apply for such a system or be informed/ supported by an exporter do to so.

Exporters

The in-depth field survey revealed a number of large farms owned and operated by
export companies in all the three pivotal provinces. The cultivation area ranges from
6ha (farms of VINA T&N Group from Ho Chi Minh City) to 600ha (farms of Hoang Hau
Company from Binh Thuan). The farms are operated for multiple purposes. First, they
work as a demonstration farm for international buyers to visit and check the
production process and product quality of the exporter and to build trust for coming
business. Therefore, the farm usually has internationally recognized certificates, most
often GlobalG.A.P., and codes for management and traceability, most often the US PUC.
Second, exporters’ farms secure a reliable supply source for the most difficult orders.
Hoang Phat Company from Long An has recently set up a 20ha farm to prepare for
stricter inspection by Japanese customs to start in 2020 and thus protect 35% of its
export turnover. Third, the exporter grows for own export. Hoang Hau Company from
Binh Thuan grows 600ha of dragon fruit and sources all fresh fruit for export from its
huge farm.

The farms employ full-time workers and provide them on-the-job training to follow the
standard production and quality assurance process. Workers are organized by groups
with clear work allocation. There are always some agronomists at every farm to deal
with technical production process and pest management in compliance with the
certificates. Exporters’ farms always use disease-free varieties supplied by SOFRI.
Compliance with import markets’ technical regulations is not a big problem for this
type of producers. However, they are still vulnerable to disease breakout. Hoang Hau
Company reported that the average yield on the 150 ha of GlobalG.A.P.-certified farm
was driven down from 30-40 tons per hectare per year to as low 10 tons per hectare
per year during disease breakout in the recent years. Therefore, the key quality issue
is low proportion of fruits with acceptable size and skin quality (Grades 1-3 for China,
Grades 1-2 for high-end markets) due to disease, rather than higher pesticide residues
than MRL.

Collectors

DARDs’ statistics show there are 500 collectors in Binh Thuan, Long An and Tien Giang.
They purchase dragon fruit from smallholder farmers and cooperatives, and sell them
to processors, exporters and directly to China through the border-trade wholesale
market. In concentrated production areas they set up collection points attached to a
refrigerated or ventilated warehouse in a convenient place for transportation and
handling. Individual farmers can easily come and sell their produce. Collectors send
vans to communes to pro-actively find the supply source. Such collectors are based in
the same production provinces and usually specialized in dragon fruit and typical farm

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products produced locally. Both fresh and processed fruit exporters purchase from
these collectors.

Collectors often buy all fruits from farmers and cooperatives without quality
requirements or traceability system, and then sort them into Grades 1, 2, 3 and off-
grade. Grades 1 and 2 are qualified for export to the EU, US and other high-end
markets, Grades 1, 2 and 3 are qualified for export to China and low-standard markets
like India, UAE. The off-grade can be sold to processing exporters or the domestic wet
market. Sorting is done based on size, appearance and (collector’s trust in) good
farming practice. No sample test is performed on MRL criteria. Most fruits go to the
Chinese border-trade market with the packing list and proforma invoice of the
collectors. No quality paper is provided, and the shipment quality is subject to buyers’
check across the borders. In case collectors source for a special export order for the
high-end market, they use the exporter’s quality and traceability requirements and
select appropriate farmers/ collectives and products, again based on their own
experience and trust. The residue level is subject to the exporters’ or even buyers’ test
later on.

There is another type of collectors who come from other provinces and do not have a
fixed location in the production area. They purchase without quality requirements or
traceability system, transport the products away and sell to the domestic wet market.
The processing exporters also source from these collectors; they often have to
purchase the whole unsorted consignment and in this case quality control is a problem
for them.

Fresh fruit exporters

According to DARDs’ rough data there are 16 fresh dragon fruit exporters in Binh Thuan,
Tien Giang and Long An and may be a few more in other provinces. They source fresh
dragon fruit from farmers and cooperatives and partly from own farms, pack it in the
packaging factory and send to importers by sea or air shipment. They actually play the
role of chain leaders in the dragon fruit value chain. Fresh fruit exporters face two
types of quality issues. The first one is related to food safety standards of the packaging
facility. Exporters acquire such standards as ISO 22000, HACCP, GMP (for food), BRC,
HALAL, Kosher, FDA and this is quite costly if they need different certificates at the
same time for different target markets. The national safe food processing facility
certificate is not common in dragon fruit packaging factories. The second one is related
to the quality of fresh fruit supplies from farms, specifically microbial and pesticide
residues on the skin and low proportion of fruit with satisfactory quality specifications.
This is so far the worst unresolved problem for fresh fruit exporters.

In order to control quality of fresh fruit supplies, lab tests on fruit samples can be
added before harvest or after boxing to detect non-compliance with buyers’ standards
and remove the supplies from the shipment. This measure may only be taken for high-
end markets like the EU, Japan, RoK, the US, Australia and New Zealand, while it is
perceived unnecessary for China and other low-standard markets. Exporters may do it

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at buyers’ request or voluntarily to get absolutely confident about quality. Lab test can
be regular or shipment-based. Samples from newer farmers and orchards are tested
on a regular basis and the frequency can be reduced later if reliability increases with
repeated non-detection evidence. Many exporters test supplies for every shipment, so
samples are taken from farms or containers for testing, or extra fruit boxes are
prepared and sent for this purpose. In addition, VHT is included in the post-harvest
process for export to Japan, RoK, Australia and New Zealand, and radiation for export
to the US.

The in-depth field survey shows that most exporters purchase a large proportion of
fresh fruit for export from farmers and cooperatives, outweighing the supply from
their own farm. They work closely to secure the desired quality for the target
international markets. Exporters’ collection points and packaging factories are built in
the convenient locations in the production area, and exporters from other provinces
are moving the packing facility to pivotal production provinces to get closer to farmers
and minimize the risk of quality degradation in transportation. Different levels of
support and quality control are administered by exporters on producers’ operation
through these vertical linkages.

Functional upgrading takes place with fresh fruit exporters in different directions. They
set up their own farms and perform the production function and thus face the quality
issue on farm production. A few have acquired new technologies and started to
process dried or frozen products (such as Binh Thuan Fruits and Vegetables Import-
Export Company and Cat Tuong) and thus integrated the processing function; they face
the same quality issues as the processing exporters described later. VINA T&T has
established a sales office in California and upgraded itself into an international
wholesaler. They supply large retail chains like Costco and local groceries stores. The
new quality issue for wholesalers is how to maintain fresh fruit quality during the long
handling and shipment period compared to short shelf life (6 days handling in Vietnam
and 24 days shipment, and only 10 days left for distribution in the US).

Processing exporters

There are about eight processed fruit exporters in the three pivotal provinces, based
on DARDs’ rough estimate. They purchase dragon fruit from all three types of
producers and collectors as raw material, peel, shape (cut into appropriate shapes like
cubes, slides, or smash and mould for puree) and then freeze (or dry) to get the final
product for export. They often process different fruits to meet a wide range of demand
and taste in the world market. The key markets for processed dragon fruit include
Japan, RoK, Australia and New Zealand, the US, Canada, and the EU. Two types of
technologies were reported in the field survey, namely quick freezing technology for
frozen fruits, and drying technology for dried fruits. Unfortunately, not so many of
Vietnamese processing exporters produce dragon fruit powder or juice, which
represents a prominent trend in the world market.

Unlike fresh fruit exporters, processing exporters have no worries about skin quality.

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Their key concern is indeed pesticide residues and diseases in the flesh that lower the
conversion rate, and contamination during the processing line. Carbendazym,
metalaxyl, mancozeb and zineb are the most reported MRL risks. Microbial
contamination, yeast and mold can happen at any step with poor sanitation and
moisture control. Certification and traceability of the raw material can also be
requested by buyers from high-end markets.

Similar to fresh fruit packaging factories, processing facilities have to acquire such food
safety standards as ISO 22000, HACCP, GMP (for food), BRC, HALAL, Kosher, FDA, etc.
Extra ventilation, air purification and more frequent freezing are applied to eliminate
contamination. Processed products often stay at the processing facility for 40-45 days
and then can be kept for up to two years at -18°C with good quality during handling,
shipment, distribution, and consumption abroad.

Quality control over material supplies is much more challenging. It is difficult for
processing exporters to get formal linkages with farmers and cooperatives since they
can only buy a small share of the total production at a reasonable price (20-30 % of
production below the qualified grades for exports or domestic supermarkets). In case
exporters buy directly from farms they always test the fruit before harvest. However,
they are actually reliant on collectors for the larger share of material supply and can
hardly test collectors’ lorry consignments. Some processing exporters are negotiating
with fresh fruit exporters to the EU on syndicate purchase of all fruit from farms, which
is most preferred by farmers. It seems to be a good sourcing strategy for benefits of all
parties, including processing exporters, fresh fruit exporters and farmers.

CHAIN INFLUENCERS

Policymakers

The Government of Vietnam and relevant ministries, MARD and MOIT make policies
and legal documents to promote fruit production, processing and export, develop and
implement government programs and projects with funding and technical support of
international donors. The laws, policies, programs and projects mainly cover: (i)
Sustainable crop production and plant protection; (ii) Application of GAP, food safety
and sanitation standards, and high-tech in crop production; (iii) Market and value chain
development and branding for fruit products.

Acting on the Government’s behalf, PPD has signed or is negotiating 20 quarantine


agreements, open access protocols (OAP) and MOU with Vietnam’s major trading
partners. They facilitate understanding and cooperation among signatories and, in
case of fruit-specific agreements, give instructions on how to comply with the SPS laws
and regulations of the import markets.

Implementing bodies

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DARDs play an active role in production management and quality control. DARDs and
their subsidiaries disseminate and implement the policies and regulations on fruit
production and protection, train and transfer technologies and techniques to farmers,
facilitate cooperative development and value chain linkages. Their authorized offices,
e.g. the Dragon Fruit Center in Binh Thuan, crop production and plant protection sub-
departments in other provinces, check and issues VIETGAP certificates, support the
PPD’s Post-Import Plant Quarantine Centers I and II in pre-granting field inspection,
post-granting check and regular monitoring of the PUC for fruit production areas.
DARD’s crop production and plant protection sub-departments perform SPS check on
producers. For example, in July 2019 when detection of Dysmicoccus neobrevipes and
Pseudococcus jackbeardsleyi chinch in Vietnamese dragon fruit shipments (from
unknown provinces) was reported from China, Binh Thuan crop production and plant
protection sub-department intensified checks on local farms, collectors and exporters
for these pests before new consignments were exported. In this aspect, DARDs work
both as state management agencies and QI institutions.

Vietnam Trade Offices play an active role in facilitating new market penetration.
Vietnam Trade Offices abroad, Vietnam Trade Promotion Agency (VIETRADE) under
MOIT and Provincial Departments of Industry and Trade (DOITs) help collect trade and
legal information from export markets, carry out trade promotion strategies and
activities, and assist exporters in checking business partners’ reliability, contract
signing and implementation. Some Commercial Services are highly pro-active in
facilitating market surveys and negotiations between governments to open the new
markets for Vietnamese fruit export. The typical cases include the Commercial Services
in Australia and New Zealand, which successfully brought dragon fruit into these high-
end markets.

CHAIN SUPPORTER

Business associations

Dragon Fruit Grower Associations exist in Binh Thuan and Long An provinces. They are
membership-based organizations of local fruit growers and exporters and work on two
main functions: (i) advocate for local and national policies to facilitate members’
business, mainly through workshops and public-private dialogues with the local
government; and (ii) provide services to members, and non-member dragon fruit
farmers and enterprises, mainly through training and capacity building activities. They
are often quite pro-active in setting the agenda for advocacy. For example, in June
2017 Binh Thuan Dragon Fruit Grower Association made four recommendations to the
Provincial People’s Committee (PPC), including (i) strictly removing shadowed Chinese
buying agents from local dragon fruit trading to make the market transparent, not
affected by Chinese ill speculation; (ii) support for dragon fruit exporters who incurred
incremental costs for transportation and irradiation; (iii) improving local pesticide
residue test; and (iv) support for the Association to set up a representative office at Po
Chai border gate to China. The Department of Planning and Investment was asked by

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the PPC to coordinate the DOIT and DARD to address the recommendations.

Research community

Local research community plays the leading role in R&D of dragon fruit varieties,
farming practices and technologies, and equipment. Different subsidiaries of VAAS
provide effective support to dragon fruit producers and exporters. SOFRI leads R&D of
dragon fruit varieties and relevant production process for them. The Southern Sub-
Institute of Agricultural Engineering and Post-Harvest Technology (SIAEP) develops
post-harvest technologies and equipment and transfer them to farmers and exporters.
Interviews with exporters showed that most packaging equipment and technological
improvements for dragon fruit are developed by local engineers and technicians and
manufactured in Vietnam, with strong support by local scientists. Various VAAS
scientists developed and transferred to farmers advanced production and pest
management techniques and know-hows to improve productivity and marketability,
including the lighting technology for harvest cycle spreading. VAAS scientists directly
supported Binh Thuan for many years to improve production process, field hygiene
and sanitation and pest management for better yield and quality. At the local level Binh
Thuan Dragon Fruit Research and Development Center under DARD was established in
2006 to follow up on technology diffusion and update newest technologies in mass
production.

QI agencies

QI bodies (DARD), inspection bodies (NAFIQAD, PPD), Vietnamese and foreign


certification bodies for local and internationally recognized certification (VIETGAP,
GlobalG.A.P., processing standards), testing laboratories under MARD, MOH and
private testing laboratories are described in Part 5 of the report.

RELATIONSHIP BETWEEN VARIOUS STAKEHOLDER IN THE VALUE CHAIN

Asymmetric benefit-sharing exists along the local VC - especially among farmers,


collectors and exporters - leaving supply and quality unstable. Dragon fruit farmers
were reliant on collectors and exporters for information on pricing and consumer
preferences, therefore largely unaware of the potential benefits of quality and value
addition. Most farmers tend to overgrow without knowing the appropriate number of
branches for target market fruit, which also makes production more difficult, costly
and prone to disease outbreaks. Farmers are reluctant to invest their capital in quality
controls and compliance schemes due to limited price benefits.

For the whole value chain, it is so far challenging to work out effective production
processes that meet the quality specifications required by buyers, and at the same
time comply with SPS and food safety standards of the import markets. Ensuring close
cooperation between exporters and farmers in farm management and compliance
monitoring is another major challenge. This would help increase the percentage of

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grade 1 and 2 that qualify for the high-end markets and make farmers and exporters
ready for the stricter requirements of foreign markets. However, farmers, cooperatives
and enterprises’ farms are facing many obstacles since they lack the knowledge, skills
and tools to control quality during production, in which fungal diseases and pesticide
residue, especially carbendazym, are the most serious problems.

The relationships between the different actors within the dragon fruit value chain and
farmer cooperative is quite dynamic in developing efficient channels to get product
grown and marketed. At the production level, the cooperatives play a critical role in
providing technical support in response to farmer’s needs. They also help farmers to
access inputs at lower prices and provide the input materials in advance or on in kind
credit loans. Concerning marketing aspects, the cooperative acts as the lead firm and
maintains good relationships with the supporting service providers, traders and
exporter in terms of identifying the better markets, increasing negotiating power to
get better and more consistent prices.

Informal and unstable chain/linkage between farmers-traders and processors/


exporters: Most farmers are households with small farms. Fresh fruit exporters/fruit
processing companies or traders normally collect fruit materials from various farms
without any long-term contract. The relationship between processors/ exporters and
farmers is consequently very informal and unstable, which makes it difficult for the
former to inform and guide the latter on the standards necessary to meet the import
country’s requirements.

The general absence of written contracts between farmers and collectors/exporters


exposes farmers to damage from speculation and price fluctuations. Farmers and
collectors generally trade without contracts as do exporters sometimes with farmers.
However, even when a contract is concluded, either side can dishonor it if the market
price moves unfavorably. Few professional exporters offer their farmers one-year
contracts with support and monitoring. In the Chinese border-gate market, the general
absence of written contracts leaves Vietnamese exporters at higher risks of
default/deferred payments and shipment rejections by Customs or buyers.

Modest domestic consumption has failed to supplement exports. Wet market


distribution channels are unpredictable and under-priced for farmers, offering no
contracts nor buying commitments. By contrast, standard contracts with domestic
supermarkets are valid for one year but tend to incorporate numerous challenging
requirements for suppliers (including cooperatives, collectors and large farms), such as
small quantities supplied weekly. Supermarkets do not buy from smallholder farmers.

The local dragon fruit value chain is dominated by small and medium enterprises
(SMEs). Most exporters have a modest size in labor, investment, and sales. The well-
known large companies in fruit processing and exportation like NAFOOD and DOVECO
have not yet established sizable dragon fruit business. Other big names in agriculture
in Vietnam like Hoang Anh Gia Lai, Vingroup are not involved in dragon fruit production
and export.

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REFERENCES

Agricultural Marketing Resource Center (2018) Dragon Fruit. Retrieved from:


http://eresources.nlb.gov.sg/infopedia/articles/SIP_768_2005-01-11.html\
Blue Book Services (2019) Dragon Fruit – Produce Blue Book. Retrieved from:
https://www.producebluebook.com/know-your-commodity/dragon-fruit/
Crop Production Department (2019) Current status and solution for development of
Vietnamese fruit production (2015-2018)
GSO (2019) Socio – economic status in 2018. Retrieved from:
https://www.gso.gov.vn/default.aspx?tabid=621&ItemID=19037
Minh D. Ngo, Son H. Nguyen (2018). Vietnam Agribusiness Competitiveness – Q.I
Part: the Assessment Report (undisclosed version)
Vietnam Customs - Customs Trade Statistics:
https://www.customs.gov.vn/Lists/EnglishStatistics/Default.aspx
World Bank (2019) Quality Infrastructure Assessment for Vietnam – Results and
Recommendations (undisclosed version)

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