Overview
Average yields in the Region are about 4 tonnes per ha, although some orchards in Australia, China and elsewhere can produce 15 tonnes per ha, under close spacings and intensive tree management. The price for fruit varies with year, season and cultivar. Early fruit in Guangdong fetch US$2 per kg, whereas the bulk of the crop is sold at half this price in the middle of the season. Premium cultivars with small seeds such as “No Mai Chee” and “Kwai May” can sell for US$10 or more per kg in a light year. Prices for export fruit are normally higher than those sold locally. In both markets, lychees are also more expensive than the related longan. Little information is available on the profitability of enterprises within the Region. An analysis in Australia showed that trees could be as profitable as alternative crops such as avocado, macadamia and mango. Picking, packing and marketing are the most expensive part of the operation, and account for 65 percent of total costs. There is little benefit in trying to reduce growing costs, whereas there are financial rewards to be gained by improving the efficiency of harvesting and packing. It is not known whether similar improvements are possible in Asia, with lower labour costs.
Yields vary widely with cultivar, season and country. In China, a ten year old tree can carry 100 kg of fruit. Average yields range from 2 to 5 tonnes per ha, although well-managed, high-density plantings can yield 15 tonnes per ha. Production is generally more consistent in Guangdong than in Fujian or Guangxi. Over-crowding, inadequate watering and fertilizing, stink bug and fruit borer lower productivity in neglected orchards. Warm temperatures during winter can also reduce flowering across the production areas.
Average yields in Viet Nam are a low 2 tonnes per ha, but only about half the plantings are of bearing age.
Average production in Thailand is 3.5 tonnes per ha, with the highest yields in Chiang Mai and Chiang Rai in the north, and the lowest in Samut Songkhram in the south. Longan generally has higher yields than lychee, but fetches a lower price.
Lychee is quite productive in India, especially under irrigation. Average yields have increased by 50 percent in the past ten years to 7 tonnes per ha. Productivity is highest in Bihar, followed by West Bengal. Some well-grown orchards in Bangladesh can be just as productive, however, average yields here are lower than in India. Production in Nepal ranges from 40 to 100 kg for ten year old specimens. The higher yields are usually associated with more intensive tree management, including irrigation.
In Australia, ten year old trees can produce 80 kg of fruit, although average yields are half that. An early economic analysis of production on the Atherton Tableland with “Fay Zee Siu” assumed average yields of 55 kg for ten year old trees, but this was too optimistic. A recent economic analysis in the same region used average yields of 24 kg per tree. In southern Queensland, yields are 40 kg per tree or 11 tonnes per ha for “Kwai May Pink”. Some orchards are more productive. Protection from bats and birds can double yields in many areas.
Early cultivars such as “Sum Yee Hong” from Guangdong fetch US$2 per kg, even though fruit quality is only average. When production is heavy, the price in the middle of the season falls to US$0.50 per kg, although sought after cultivars such as “No Mai Chee” and “Kwai May” may fetch US$15 per kg. Growers in Guangxi generally receive US$1.50 per kg for lychee and a little less for longan. For comparison, apples are US$1 per kg and bananas US$0.25 per kg. Prices in the export markets are much better, normally US$5 to 15 per kg.
Lychee is a lucrative crop in Viet Nam. In Luc Ngan District, each farmer has about 100 trees with half of these of bearing age. Average income is US$1,400 to 2,200 or US$700 to 1,100 per labourer. This is a high income compared with Local Government workers who earn US$400 per annum.
The average farm price in Thailand is US$1.50 per kg, with longan receiving only half of this. In 1997, fresh exports of 11,000 tonnes sold for US$13 million, while 27,000 tonnes of canned fruit sold for US$38 million.
The Philippines is a net importer of lychees that normally sell for only US$0.30 per kg. The price has fallen in the last year or two, but is still higher than that obtained for some of the more common local fruit.
Prices in Australia range from US$1 to 6 per kg, depending on quality, demand and time of year. Average prices are US$2.50 per kg, somewhat above US$1.50 predicted in 1986 when the industry was just starting to expand. The highest prices are normally received for early-season “Fay Zee Siu” from northern Queensland.
Thew examined the profitability of orchards in southern Queensland, with average yields of 4.6 tonnes per ha and a price of US$1.50 per kg. These yields and returns are on the low side for orchards in southern districts. Nevertheless, his analysis is useful for examining the effect of picking rate, price, and variable costs. He found that a 10 percent increase in price improved profitability more than a 50 percent reduction in growing costs. This analysis suggests that there are more gains to be had in improving the handling of fruit than in reducing growing costs.
Hassalls and Associates studied the profitability of an 11 ha “Kwai May Pink” orchard in southern Queensland over 20 years, assuming yields of 11 tonnes per ha (275 trees per ha), a price of A$5 per kg and netting costs of A$16,500 per ha. Picking, packing and marketing were the most expensive part of the operation, and accounted for 65 percent of total costs. These data further illustrate that there is little benefit in trying to reduce the costs of watering, fertilizing and spraying, while there are potential benefits to be gained by improving the efficiency of harvesting and marketing. Gross margin was A$34,000 per ha, after subtracting recurring costs of A$21,000 per ha from revenue of A$55,000 per ha.
Table 11. Effects of netting, pruning and plant spacing on yields and returns in Australia.
| |
Potential yield (kg/tree) |
||||
|
10 |
20 |
30 |
40 |
50 |
|
| |
Low-density planting without pruning or nets |
||||
|
Actual yield |
6 |
12 |
18 |
24 |
30 |
|
Actual yield |
0.90 |
1.80 |
2.70 |
3.60 |
4.50 |
|
Returns |
4.50 |
9.00 |
13.50 |
18.00 |
22.50 |
| |
Low-density planting with pruning and nets |
||||
|
Actual yield |
7 |
14 |
21 |
28 |
35 |
|
Actual yield |
1.05 |
2.10 |
3.15 |
4.20 |
5.25 |
|
Returns |
5.25 |
10.50 |
15.75 |
21.00 |
26.25 |
| |
High-density planting with pruning and nets |
||||
|
Actual yield |
7 |
14 |
21 |
28 |
35 |
|
Actual yield |
2.10 |
4.20 |
6.30 |
8.40 |
10.50 |
|
Returns |
10.50 |
21.00 |
31.50 |
42.00 |
52.50 |
(The analysis assumes 30 percent loss of fruit to birds and bats and a 10 percent extra loss to insect pests in the traditional orchard. Yields of pruned trees are 30 percent lower than the yields of non-pruned trees (similar yields on a canopy area basis). There are 150 trees per ha in a traditional planting and 300 trees per ha in a high-density planting. The price for fruit is A$5 per kg. Data from Menzel et al. 2000).
Hinton examined costs and returns for a 13 ha “Fay Zee Siu” orchard in northern Australia, assuming yields of 3.7 tonnes per ha (154 trees per ha) sold at A$8 per kg. Nets were hung over the trees at a cost of A$6,000 per ha. The gross margin was A$19,000 per ha after subtracting recurring costs of A$11,000 from the gross revenue of A$30,000 per ha. Harvesting and marketing accounted for 87 percent of variable costs. The two most critical factors affecting profitability were yield and price. At yields of 12, 24 and 36 kg per tree, farms were profitable above A$10.20, A$6.00 and A$4.60 per kg, respectively. Capital outlays were not included in the analysis, but were A$1,200 per ha for each year of the 30-year project. Land was only A$3,000 per ha, about a third of the cost in southern Queensland.
The costs of production are much lower in South-East Asia than in Australia. There are also differences in capital outlays for land and equipment. However, some of the principles discussed in Australia have application elsewhere.
Menzel et al. (2000) undertook an analysis of returns for three different orchards in Australia. They compared:
a traditional non-netted orchard with 150 trees per ha and trees not pruned,
a netted and pruned orchard with 150 trees per ha, and
a netted and pruned orchard with 300 trees per ha.
The analysis assumed 30 percent loss of fruit to birds and bats and a 10 percent extra loss to insect pests in the traditional orchard. Yields of pruned trees were 30 percent lower than the yields of non-pruned trees. However, yields were similar when expressed on a canopy surface area basis. The price for fruit was A$5 per kg.
Returns were greater after pruning and netting, especially when trees were planted at close spacings (Table 11). Some existing orchards suffer losses of up to 60 percent due to birds and bats, so the net impact of pruning/netting would be substantially greater. There are of course additional costs associated with this system, including A$1,650 per ha for extra plants, A$1,875 for extra irrigation and A$16,500 for nets. Not taken into account in this analysis were the savings associated with harvesting smaller trees. Harvesting is very expensive in Australia, due to the high costs of labour.
Bibliography
Gosh, S. P. 2001. World trade in lychee: past, present and future. Acta Horticulturae 558, 23-30.
Hinton, A. W. 1999. Lychee Production in Tropical North Queensland - estimating profitability. Queensland Department of Primary Industries 40 pp.
Hyde, K. 1999. The New Rural Industries: Financial Indicators. Rural Industries Research and Development Corporation, Canberra 50 pp.
Menzel, C. M., Olesen, T. and McConchie, C. A. 2000. Lychee, Longan and Rambutan. Optimizing Canopy Management. Final Report to the Rural Industries Research and Development Corporation, Canberra 92 pp.
Menzel, C. M., Olesen, T. and McConchie, C. A. 1999. Making a profit from lychees in Australia. Proceedings of the Fifth National Lychee Conference, Twin Waters pp. 5-15.
Subhadrabandhu, S. and Yapwattanaphun, C. 2001. Lychee and longan production in Thailand. Acta Horticulturae 558, 49-57.
