HONG KONG — Indonesia is expanding cultivation and completing legal procedures in preparation to begin exporting durians to China, offering consumers a new - and possibly cheaper - alternative to fruit from Thailand and Vietnam.
The move could open up a lucrative new market given Indonesia's large durian industry and China's seemingly limitless appetite for the pungent fruit.
But Indonesia's growers might not have the capacity to begin serving Chinese consumers right away, as domestic demand swallows up so much home-produced durian, analysts said.
Officials from China's General Administration of Customs travelled to Indonesia last week to conduct an audit of local durian plantations and packing houses, according to domestic media reports.
The inspections are likely to determine whether "durian export cooperation" can proceed, a local horticulture authority told Indonesia's national Antara news agency.
In July, China's state-run news agency Xinhua said the Indonesian government was "set to accelerate" durian exports from one province, Central Sulawesi. Last month, it reported that officials in Jakarta were "increasing efforts" to launch exports.
Indonesia's Ministry of Agriculture has reportedly designated 422 villages around the archipelago to focus on cultivating durians.
"They have the positive hope for those durians to be exported to China," said Nukila Evanty, an Indonesia-based member of the Asia Centre research institute's advisory board.
Indonesia may first aim to receive clearance to send frozen durians to China, officials have indicated.
Frozen durians are usually cheaper than fresh ones and less risky from a food safety perspective. China has at times blocked shipments of Thai and Vietnamese durians due to its strict phytosanitary standards, which refers to safeguards against plant diseases.
Thailand has long dominated China's durian market, with the country supplying 57% of the US$6.99 billion worth of the fruit China imported last year.
Vietnam was the second-largest supplier, accounting for 38%, while the Philippines and Malaysia were a distant third and fourth, selling a combined US$38.2 million, Chinese customs data showed.
Fresh durians sell in China - which is by far the world's largest market for the fruit - for as much as 200 yuan (US$27.66) for a single six kilogrammes (13 pounds) fruit.
The prospect of Indonesian durians entering China has piqued the curiosity of Chinese consumers.
If frozen Indonesian durian reaches fruit shops in Shanghai, "I might first go and try one," said Zhao Yu, a 38-year-old finance professional based in the city. "I would definitely look first at the prices."
Indonesia ranks as Southeast Asia's biggest durian producer, with about 2 million tonnes of the fruit harvested in the country each year.
But much of the fruit grows in the wild without the uniform quality standards that an importer nation might expect, said Mohamad Reza Tirtawinata, director of the Nusantara Durian Foundation.
A customer leans forward to smell the "king of fruits", the exotic Asian durian in downtown Singapore. (File photo: Reuters)
Thailand and Malaysia already have established supply chains and brand recognition in China, so Indonesia would need to differentiate itself
Nearly 90% of Indonesia's produce is sold domestically, and the country also imports durians from around Southeast Asia to feed its 283 million population, Reza added.
"For export, I don't think the standard quality is enough," he said. "To do exports, you have to have regulations and export permits - a lot of things to do."
Frozen durian could give Indonesia an initial toehold in the Chinese fruit market, according to Reza. Malaysia also started with frozen shipments before starting to send fresh durians to China last year, he noted.
As a newcomer to the Chinese market, Indonesia's fruit would lack the brand reputation that other shippers enjoy, putting it at a disadvantage, said Lim Chin Khee, an adviser to the Durian Academy, a Malaysian institution that trains local growers.
"Thailand and Malaysia already have established supply chains and brand recognition in China, so Indonesia would need to differentiate itself to compete effectively," Lim said.
Indonesia might succeed by exporting frozen durians that Chinese importers can reprocess into other foods, Reza said. Chinese vendors already sell durian-flavoured drinks, desserts and hotpot broths.
Local growers already ship some frozen durian to Singapore, according to Reza. "The prices are better here in Indonesia for certain varieties," he said.