Markets

The King of Fruits Takes on a New Challenger: Vietnam’s Durian Exports Face a Trio of Rivals in the Chinese Market, with a Projected Output of 1.85 Million Tons in 2023

The durian race in China is about to get a whole lot fiercer with the entry of Asian providers into the fray. As they say, the devil's in the detail, and in this case, it's the unique, pungent flavor of this spiky fruit that has the potential to divide audiences and conquer markets. With a surge in interest from Asian suppliers, the durian game in China is on the brink of a massive shake-up, and the competition is about to get seriously intense.

Administrator

28 August, 2024

According to SCMP, the first batch of fresh durian from Malaysia has arrived in China to meet the demands of consumers in the billion-people market, who are accustomed to durian from Thailand and Vietnam.

On August 24, Malaysia’s Deputy Minister of Agriculture and Food Security, Datuk Arthur Joseph Kurup, announced that they had begun transporting 40 tons of fresh durian in three phases, as reported by the country’s national news agency, Bernama.

Malaysia’s export strategy focuses on quality over quantity. Lim Chin Khee, an advisor at the Durian Institute, a training organization for Malaysian durian farmers, stated, “Malaysian durian is considered a luxury product, and our current export volume is smaller, targeting higher-end consumers.”

The first phase, consisting of 20 tons of durian, reached the Zhengzhou Xinzheng International Airport in Henan Province on August 25. Dubbed the “king of fruits” by some, durian is considered a delicacy in China and is often gifted on special occasions, including weddings.

As the world’s largest importer of durian, China received 1.4 million tons last year, with 68% coming from Thailand in terms of value.

China’s Durian Imports from 2021 to 2023

With some consumers paying up to 200 yuan ($28) per fruit for the creamy treat, Chinese officials met with their Indonesian counterparts on August 23 to discuss the possibility of importing durian from the Southeast Asian archipelago.

Officials in Jakarta aim to boost durian exports from Central Sulawesi, eyeing China as a promising market with high demand from Chinese consumers, according to Xinhua in July.

Indonesian durian must also comply with China’s stringent phytosanitary regulations, ensuring they are pest-free. Indonesia is awaiting a protocol from China after years of negotiations, reported the Jakarta Globe on August 24. According to the newspaper, Foreign Minister Retno Marsudi discussed this issue with her Chinese counterpart Wang Yi during talks in Beijing on the same day.

ING Greater China economist Lynn Song attributed the delay in Indonesian shipments to possible non-compliance with China’s hygiene standards. Song stated, “The monitoring and quality assurance procedures and processes have not been unified, which could be the main reason for the shortage of imported durian in China.”

“Assuming these negotiations succeed, I believe Indonesian durian could boom in the right market in China due to high demand,” Song added.

In 2023, Indonesia produced 1.85 million tons of durian, with over 50% of the total output originating from Java, according to data from Indonesia’s Central Statistics Agency. East Java is the country’s largest durian-producing province, yielding over 480,000 tons last year.

For years, the Indonesian government has encouraged local farmers to cultivate durian as it has become a valuable commodity. Five years ago, President Joko Widodo called on oil palm farmers nationwide to diversify their businesses and plant durian trees, believing that durian has better prospects in the international market than crude palm oil.

Source: SCMP