Southeast Asian durian growers shrug off threat of Chinese competition
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Southeast Asian durian growers shrug off threat of Chinese competition

Consumers browse durian exported from Thailand at the Qingdao Thai Fruits Golden Months event held by the Department of International Trade Promotion in Qingdao, China, in 2021. (Photo: Commerce Ministry)
Consumers browse durian exported from Thailand at the Qingdao Thai Fruits Golden Months event held by the Department of International Trade Promotion in Qingdao, China, in 2021. (Photo: Commerce Ministry)

Southeast Asia's China-focused durian producers are concerned about a looming supply glut and economic headwinds that may dull China's appetite for imported fruit, but they have shrugged off the impact of China's durian self-sufficiency drive.

For several years, major durian exporters from Malaysia, Thailand, the Philippines and other Southeast Asian countries have congregated at the China International Import Expo in Shanghai to sniff out new orders.

Few say they are concerned about the competition from Chinese durians, such as those grown in Hainan province.

"China has good technologies but unlike Malaysia, little arable land throughout China is suitable for durian cultivation," said Jeremy Chin, managing director and co-founder of LKE Group, a Kuala Lumpur-based durian trader.

"Even though Hainan is tipped as a good locale, its geology and climate constraints mean the cost of plantation and then retail prices will be much higher … it does not have the combination of tech, geography and climate like in Malaysia.

"Durian self-reliance is a tall task for China. It may still rely on imports."

Albert Liu, an executive vice-chairman of the Singapore-based Durian International Association, also said Hainan durians were too costly to grow at scale.

"The average cost can be 60 yuan (290 baht) per kilogramme, as some growers in Hainan nurture durians in greenhouses, but the cost can be just 20 yuan per kilogramme to grow durians in Southeast Asia," he said.

Ambitious producers of the pungent fruit in Hainan are unfazed by those constraints, with trial production poised to quadruple to 200 tonnes this year, according to an estimate by the Hainan Academy of Agricultural Sciences. But destructive typhoons that hit the island this year have led to huge losses.

Hainan's first commercial durian harvest - just 50 tonnes - hit the Chinese market last year, representing a mere 0.005% of all the durian consumed in the country that year.

Though Southeast Asian durian traders are confident their fruit will continue to delight Chinese palates, oversupply and the Chinese middle class' declining stomach for the "king of fruits" are making the outlook less delectable.

As more regions jump on the durian bandwagon to cater to Chinese demand, traders from major exporting countries expressed concerns at a forum in Shanghai on Wednesday.

"We are currently in the golden era of durian in China, but the momentum may taper off and it may be a silver era in the coming five years, when there can be an oversupply, especially since fresh fruits have short shelf life," said Terry Lin, sales director at Agrionex, an agricultural technology provider based in Malaysia.

The value of China's imports of fresh durian has surpassed that of any other fruits since 2019. Last year, China's imports exceeded 1.4 million tonnes, with their value up 70% on year at US$6.7 billion (230 billion baht), according to data from the General Administration of Customs of China.

Despite the rising popularity, Lin said China's annual per capita durian consumption is around one kilogramme, compared with 13 kilogrammes in Malaysia and four kilogrammes to five kilogrammes in Thailand.

Durian is still considered an expensive "superfruit" in rich Chinese cities like Shanghai.

"A durian from Thailand weighing three kilogrammes to four kilogrammes will still cost 100 to 150 yuan in Shanghai's supermarkets," said one durian lover in the city.

"It is even more expensive if you consider the edible part is less than half of the gross weight. We have seen consumption downgrades everywhere and durian is not something you can't live without."

Durian International Association's Liu also warned of the risks of unchecked growth in durian cultivation in Southeast Asia.

"The whole industry and reputation may take a hit when durian quality suffers in this headlong rush," he said.

"The problem is that durian quality varies greatly. Just like opening a blind box, consumers will never know if it's good or tasty until after you crack open a durian.

"There should be unified, widely-recognised and enforceable standards … and promotion of tech to guarantee stable quality. There could also be participation by some Chinese universities and research institutes."

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