Lower durian production in Malaysia due to heavy rainfall

Published 2021년 6월 11일
Malaysia is one of the largest producers and exporters of durian in the global market. The country mainly exports to its neighboring countries, Hongkong and Singapore, but exports are expected to fall in the coming months due to a fall in production and an increase in export unit price. The production volume of Malaysian durian is likely to decline by around 20% by the end of the season, while the export price is expected to be 10%- 20% higher than the previous year.

Malaysia is one of the top producers of durian globally, with over 90% share in global production. The main durian varieties produced are Musang King D24, D101, and D88. By June 2020, all types come in season, and the country witnesses a spike in the number of exports. Malaysia is among the largest durian exporting countries, with durian exports worth USD 33.8 million during 2020. Singapore has the largest share in Malaysia's durian exports, 61.5%, followed by Hongkong(27.6%) and Canada (3.2%).


Source: Tridge.

In 2021, it is expected that the volume of durian production will decline due to a fall in yield by at least 60%. More than average rain has created unfavorable agro-climatic conditions for the durian to grow in the last few months. Durian flowers require a solid week of tropical heat to develop, and the volume of developed flowers fell compared to the previous year. The last four months in the main durian growing region of Pahang were overcast, rainy, and relatively cold, and instances of the flood were seen across Malaysia. Overall production volume of Malaysian durian declined by around 20%.


Source: VAM.

As production fell, the price of durian shot up in the domestic market compared to last year's season. The number of chartered flights has declined due to the outbreak of COVID-19, which has created logistics issues. The available logistics are high priced, which is inflating the export per-unit price of durian. The price is expected to climb up by 10%-20% in the coming months compared to the same period last year. Currently, many producers have canceled their export plans and are focusing on fulfilling the domestic demand. In the coming months, Malaysia's durian exports will likely fall due to a limited supply and inflated prices. Thailand has the perfect opportunity to tap some of Malaysia's export destinations like Hongkong and Singapore's proximity and is likely to have lower transportation costs.


Source: ITC Trade Map. HS Code: 081060

Sources

By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.