Chinese Border Controls Set to Impact Thai Durian Exports and Prices

Stringent COVID-19-related policies have been placed by China customs at the Dongxing Port, Mohan Port, and the Friendship Pass, impacting Thailand's durian exports and raising prices. These three ports are the main entry points for Thai durian shipments into China, Thailand's leading durian market, and the intricate border checking policies have halted customs procedures whenever cargo tests positive for COVID-19, leading to significant delays in delivery times.

April to May is the peak period for Thai durian production and export. During this period, Chinese customs officials usually clear 500 containers per day. However, this figure has dropped significantly to 20 containers per day this year. This sluggish pace has made importers reluctant to place further orders, hampering Thai durian exports. According to the Thai Fresh Fruit Traders and Exporters Association, exports are now forecast at 50% lower than last year. The severity of the situation is worsened by Thailand's dependence on land shipments, with 90% of the country's fruit consignments transported via land, compared to only 8% and 2% exported by sea and air, respectively.

These logistical challenges have caused Thai durian export prices to drop in May. Export grade durians are currently priced at USD 3.49/kg and could fall to USD 2.91/kg in the next two weeks, a decrease of 17%. According to Tridge wholesale price data, medium-sized monthong durian prices dropped to USD 3.37/kg during W2 of May from USD 3.55/kg last year, while large-sized monthong durian from Ratchaburi province fell to USD 3.83/kg from USD 4.10 in 2021, a 6.51% YoY decrease. Tridge's price prediction for June places Thai durian wholesale prices at 30% less than current prices on the back of the current border issues, which are forecast to persist over the next month due to the numerous delivery trucks still delayed at the border crossings.

According to Thailand's Ministry of Commerce, the impact on the country's fruit exports is far-reaching and has impacted shipments of mangosteens, lychees, longans, mangoes, and rambutans. To mitigate these export losses, Thai durian suppliers could focus on emerging markets such as the Hong Kong, Malaysia, and Macao, as exports to those markets have increased by 27%, 19%, and 58% over the past year, respectively. Malaysia, in particular, has suffered a 60% drop in durian production this year due to adverse weather, and the South Asian country has significantly increased its durian imports to meet local demand.