Friday, November 15, 2024

China’s durian market matures as Thailand loses ground, Vietnam and Philippines get a taste

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Vietnam intervenes in Thailand’s interests after China begins granting permits to Vietnamese exporters shipping fresh durian In 2021.

Vietnam’s durian exports to China went from almost zero to $188.1 million, a 4.63% share in 2022, and sharply increased by 31.82% last year to a total of $2.1 billion.

Vietnam’s global fruit exports will reach 40.88 million kilograms in 2022, accounting for 4.9% of the total, the Food and Agriculture Organization of the United Nations said, adding that Vietnam’s share was less than 1% last year and zero before then.

Vietnam aims to increase durian sales by 55% from last year to US$3.5 billion this year as it expands into the Chinese market, the country’s Ministry of Foreign Affairs predicted last week.

Vietnamese farmers know how to rotate crops to prolong harvests

Nguyen Thanh Trung, Fulbright University Vietnam

HSBC said in a research report last year that more than 90% of durian exports reach China.

Durian is valuable items For the Chinese middle class. Although some criticize its odor, the thorn-covered crop commands high prices and has attracted a significant number of enthusiasts who call it the “king of fruits.”

Many Vietnamese farmers have replanted their fields and bought new equipment to switch to durian cultivation, said Nguyen Thanh Trung, a political scientist at Fulbright University in Vietnam.

05:57

Our reporter had never eaten durian, so we made him sample everything at the durian buffet

Our reporter had never eaten durian, so we made him sample everything at the durian buffet

“Vietnamese farmers know how to rotate crops and lengthen the harvest period,” Nguyen said. “Durian is considered a cash crop in Vietnam and brings many benefits. Farmers know how to maximize their chances.”

The Philippines is also slowly gaining market share. one year ago This month, China agreed to start importing fresh durian from the Philippines, which grows primarily in the volcanic soil of Mount Apo in southern Mindanao.

According to a report by the state-run Philippine News Agency, the Philippines’ durian exports to China from January to June 2023 reached US$1.88 million.

How is China’s first domestically produced durian different from those in Thailand and Malaysia?

The Philippines accounted for 0.2% of China’s durian imports in US dollar terms last year, according to Chinese customs data.

Jonathan Labelas, managing director of Manila-based consulting firm eManagement for Business and Marketing Services, said durian producers are still prioritizing the domestic market and exporting the surplus.

China too announced last year It has been announced that the first domestically grown crop has been successfully cultivated on the southern island of Hainan.

Feng Xuejie, director of the Tropical Research Institute, said, “This year’s domestic durian production is expected to be 250 tons, and a large amount may be on the market by next year, by which time the production will reach 500 tons. There is a possibility.” Fruit trees of Hainan Academy of Agricultural Sciences.

Last year, Hainan achieved a total production of 50 tons, but Feng said this was not enough to satisfy hungry Chinese consumers.

“Let’s wait and see about the price and taste of domestic durian in the future,” Feng added.

01:07

Chinese customer secretly eats durian feast at supermarket

Chinese customer secretly eats durian feast at supermarket

Shipping from the Philippines to China generally costs more than other Southeast Asian exporters due to distance and infrastructure barriers. That could change, Lovelas said.

“At this point, the Philippines could be the first alternative source of supply,” he said. “The government will probably improve agricultural infrastructure such as cold storage.”

Malaysian durian exporter press for a deal Simon Chin, founder of Malaysian exporter DKing, said this year was to celebrate the 50th anniversary of diplomatic relations with China. Currently, only frozen durians are allowed to be transported in Malaysia.

Supply will never be enough for China

Sam Shin, S&F Produce Group

“We are currently in talks with China to look into fresh fruit exports, similar to what they did with the Thais,” Chin said.

In terms of revenue, Thailand’s durian shipments to China increased last year as the consumer market in China’s medium-sized cities began to mature, said Sam Shin, development director of Hong Kong’s S&F Produce Group. The overall number continued to increase. S&F ships durians from Thailand.

“Supply will never be enough for China,” Singh said. “right now, [the market] First- and second-tier cities are highly developed, but third-, fourth-, and fifth-tier cities are less so. ”



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