Ho Van Hoa, a local farmer, harvested three tons of dragon fruit on Tuesday, which he sold for VND8.25 million.

Traders paid him VND5,000 per kilogram for the 1.5 tons that made the cut for exports to China, but only VND500 per kilogram for the rest, he said.

"This harvest's loss was on the higher end. My production costs were in the tens of millions [of dong]."

Nguyen Si, who also owns an orchard nearby, said traders offered him VND7,000 per kilogram for export-grade fruit.

That has been the highest price recently, but not enough to cover his costs of VND80 million for fertilizers, labor, water, and electricity, he said.

"The mid-Autumn and Lunar New Year crops are usually the most anticipated, but this year was a disaster."

Nguyen Si at his dragon fruit farm in the Central Highlands province of Lam Dong, Vietnam. Photo by VnExpress/Tu Huynh

Nguyen Dinh Phung, another farmer living 50 kilometers away, said the fruit usually sold for VND17,000-20,000 per kilogram due to high demand from China ahead of its Mid-Autumn Festival later in September and National Day on Oct. 1.

The price needs to be at least VND10,000 for farmers to break even, he said.

"Many are planning to switch to growing lotus or paddy if the losses persist."

Dragon fruits at an orchard in Tan Thanh Commune in the Central Highlands province of Lam Dong, Vietnam. Photo by VnExpress/Tu Huynh

Huynh Canh, chairman of the Binh Thuan Dragon Fruit Association, blamed the price drop on a surge in supply this season.

China, traditionally a large export market, has also been rapidly expanding its own dragon fruit output, he added.

Lam Dong has over 26,000 hectares under the fruit, with an output of 500,000 tons a year.

Vietnamese dragon fruit is exported to more than 20 markets, including India, Thailand, and the UAE.