Durian Guide

The Department of Science and Technology: Industrial Technology Development Institute (DOST-ITDI) of the Philippines will work with the Davao Food Terminal Complex (DFTC) to reduce food spoilage. The DOST plans to improve packaging technology and logistics. The project is expected to reduce the spoilage of various commodities such as pomelo, durian, mango, mangosteen, lettuce, and broccoli. This project aims to reduce product damage and spoilage by at least 20% of reported losses. The Philippines is stagnating in durian production, but there is a window of opportunity to come into export markets between the Thai and Malaysian seasons. Due to favorable climatic conditions, Durian's potential is significant and could lead to higher profit margins for Philippine farmers.

Strength: Large production, variety

Weakness: Unstable political situation, less structured infrastructure

Opportunities: New services, change of government

Threats: COVID-19

Some of the major issues currently facing the Chinese durian market in 2020 are the diversity of brands, large price differences, significant market fluctuations, and irregular quality levels. There is also little standardization throughout the industry. The Chinese durian market can be divided into three levels: the highest level includes the five most-recognized brands, the middle level includes nearly 50 brands with high prices and decent name recognition and the lowest level includes over 200 brands that are often prone to low and fluctuating prices. Women are the primary consumers of durians alongside young people in general; consumers between the ages of 18 and 23 account for more than half of sales. Chinese durian consumption also includes derivative products such as durian pizza and durian cakes.

Source: 

Durian market and production continue to grow

The import tariffs for the top 5 trading partners range from 0% to 30%.

Source: ITC Market Access Map

Farm -> Factory -> Export/Trading company

Most farmers do not own packing houses, food processing facilities, or trucks. Therefore, do not export directly. Most have limited knowledge when it comes to export processes and client communication. Farmers are usually not involved in the process after harvesting. Intermediaries play a considerable role in the value chain as farmers are not confident enough with their crops, communications, and negotiations. Big farms usually own packing facilities or affiliations with other companies that can provide packing facilities for them, but not all. The value chain of processed durian starts from the consolidation and buying of fresh durian as the main ingredient for food processing and involves food processors and other service providers. The processing of durian could be categorized into two, namely: primary and secondary processing. The primary processing of durian refers to the processing of durian fruit aiming to lengthen its shelf life and preserve its form, which involves fruit extraction and freezing. Two main products in primary processing are the vacuum-packed frozen durian mainly used for processing and the blast frozen durian processed for export. While on the other hand, secondary processing refers to food processing, transforming durian into different value-added products. Secondary processed durian products refer to durian jam, candies, and other pastries. Secondary processing involves using other food ingredients such as milk, flour, and sugar to produce different durian delicacies.

Value Chain Map of Processed Durian – Food Products 

Source: Department of Agriculture Philippines

The supplier network is strong with co-ops between farmers and usually ensures that suppliers have a signed contract/MOU with suppliers (co-ops/farmers). There is a competitive oligopoly, especially among several large firms that are dominant in searching for the best price-output combination. Dole and Del Monte are the two major multinational companies involved in processing. The fresh durian chain involves input suppliers, farmers, traders, consolidators, wholesalers, arriendos, retailers, and consumers. Traders pick up the fresh durian from farmers and bring these to wholesalers, retailers, and processors, and some also sell directly to consumers. However, some of the traders’ role in the value chain of fresh durian starts from farming – specifically in the harvesting of durian, as this activity requires high skills from durian pickers. A few traders are also engaged in contract buying with durian farm owners who take charge of fruit care to trade. On the other hand, some farmers with harvesting skills and transportation access bring their harvest directly to traders, processors, and consumers. 

Value Chain Map of Fresh Durian

Source: Department of Agriculture Philippines

• Durian growers tend to be mainly small scale averaging 2~3ha
  
• Traditional Value chain: Farmers contact traders to negotiate pricing from domestic market. Farmgate price is around half the domestic retail price.
  
• Traders/processing firms are the one’s responsible to bear the harvest cost.
  
• For export, food processing traders conducts pre-season contracts with farmers.
  
• Hypermarkets and major supermarkets growth have created new value chains, where they deal pre-season contracts directly with farmers to control quality and volume supply.  

Widely known and described in Southeast Asia as the "king of fruits," the Durian is distinctive for its large size, unique odor, and formidable thorn-covered husk. It is rich in vitamins and minerals. The smell of the flesh is believed to be linked to bacteriostatic indole compounds. Eating Durian is alleged to restore the health of ailing humans and animals.

Common durian varieties registered by the Bureau of Plant Industry (BPI) - National Seed Industry Council (NSIC): Chanee, Monthong, Atabrine, Mamer, GD 69, Lacson Uno, Alcon Fancy, Arancillo, Oboza, Puyat, SMIARC #2 and Duyaya. However, the Durian Industry Council of Davao City (DICDC) prefers and promotes the Puyat variety because of its mild smells, sturdier, thicker flesh, and is the preference of the market, especially export. On the other hand, some processors prefer the native varieties because of their intense aroma, while others use mixed types in processing, particularly for candies and pastillas.

Durian is prominently produced in Davao Region due to its competitive advantage over other regions in the Philippines regarding soil type, favorable agro-climatic conditions, and large durian plantations. Other top durian producing regions are ARMM and SOCCSKARGEN.

During the peak season of fruiting, processors buy and stock durian flesh in a privately-owned storage facility for the future availability of raw materials during lean months. Accordingly, high peak buying of processed durian products is during "Ramadan," national congresses, summit and trade fairs held in the region.

Frozen Durian, through blast freezing, has reached export markets and poses high-income potential. According to players, there is still tremendous untapped market potential for Davao city's Durian, of which advanced processing technologies and logistic supports are very much needed.

Durian is now gaining popularity internationally for its distinct taste, specifically in China and countries with dense tourist populations such as Hong Kong and Singapore.

- South-East region, Central Highlands and Mekong Delta are the major producing regions with a total production area of around 17,000 ha, with annual volume at around 82,000 MT

- SE region and central highland harvest (July to Aug).

- Mekong region harvests from May to June

- Majority of volumes produced are for domestic consumption and the rest is for export.

- Due to fluctuations in local weather and climate change, variations in growing period and harvest occurs in patches making fresh durian available almost all year long from May to November

Durians can be produced all year round in Thailand. Due to the popularity and the value of the fruit, the Thailand government together with the farmers had developed the technique that will make the durians bloom all year round.

The farmers will only harvest when durians reach a certain age by checking the appearance of durians, and count the numbers of days from the durian flowers are blooming which are different by types below:

1) Monthong: 140-150 days

2) Chanee: 110-120 days

3) Kan Yao: 120-135 days

4) Kradoom: 90-100 days

However, the number of days counting may vary a bit by the geography and the weather (i.e. Hot and dry climate, durians will reach the age sooner, the rain will slow down the aging process of durians). 

Top Export Destinations of Fresh Durian From Philippines

Source: Tridge

The top destinations for Philippine durians were Singapore, Japan, and Thailand in 2021. Singapore marked the highest increase in export value, reaching USD 260.7K and 48.23% market share, with a 248.19% 5-year growth.

Hong Kong, Taiwan, and the US were the top importers of durian in MY 2020/21. Hong Kong’s import value amounted to USD 31M with import quantity around 12,453 MT, followed by Taiwan with an import value of USD 17M and import quantity around 6,874 MT. The third spot as a leading importer was the US with an import value of USD 6.3M and quantity around 2500 MT

Thailand, Hong Kong, and Vietnam were the top exporters of durian in 2020. Thailand had an export value of USD 2,098,666K with an export quantity around 620,889 MT, followed by Hong Kong with an export value of USD 585,458K and export quantity around 245,815 MT, and for the third leading exporter, Vietnam had an export value of USD 71,397K and quantity around 27,988 MT.

The main varieties of Vietnamese Durian are Ri6 and Chin Hoa, which has enormous arils. Vietnam has about 30 native varieties

1. Sau Rieng Ri 6

- This variety is found in Ho Chi Minh City and is the most popular variety in Vietnam. 

- It is bright yellow in colour, with thick and fibrous flesh. 

2. Sau Rieng Chin Hoa

- This variety is large and round in shape, with a significant amount of flesh. 

3. Sau Rieng Cuon Bo Co’m Sa’u

- It has a creamy taste and does no have the typical durian flavour.

- Grown in Mekong Delta.

4. Sau Rieng Hat Lep Tieng Giang

- This is a fleshy durian with small seeds.

- Grown in the Tieng Giang province of the Mekong Delta.

5. Sau Rieng Kho Qua Xanh

- This variety has large seeds, small flesh, with a strong flavor and smell. 

- It is the cheapest durian variety. 

6. Dona

- This variety is actually a Thai Monthong grown on a Vietnamese rootstock. 

- It is slightly sweeter than the Thai Monthong.

For buyers, the favored shipment for large quantities is by sea freight while small quantities are usually shipped via air freight. Sea freight is generally cheaper and takes longer, but more suitable for heavy load capacity than air freight. Airfreight is faster, safer, and more reliable, but more expensive - a $195 ocean shipment can cost $1,000 by air. Although both shipping methods are reliable modes of shipment, they can both encounter unexpected delays. The urgency of stocks based on client contracts is always considered.

Some of the main ports used for shipments and travel duration from main packing facilities are as follow:

-Davao Port – Davao Farms/Food5 Packing Center: 30 mins

-Davao Port – Kidapawan Farms/Food Packing Center: 120 mins

-CDO Port – CDO Farms/Food Packing Center: 40 - 120 mins

-Manila Port – Benguet Farms/Food Packing Center: 5-6 hour

-Corrugated boxes – for fresh or vacuumed commodities

-Drums or Foil sealed bags – for Coffee, Tea and etc.

-Chipboard – for processed food and beverage

-Bottling/Tetra Pack – alternative to canning

Procedure for processing Fresh Durian in preparation for packaging?

- To be exported to region, durian must adhere to hygiene standards, have an extended shelf life, and be packaged appropriately to protect the fruit during international shipping.

- Durian pulps and whole durians with shells are usually frozen and vacuum sealed.

- Vacuum packaging, vacuum skin packaging (VSP), and modified atmosphere packaging (MAP) are the preferred durian packaging types.

- Packaging machines for these packing types are designed for varying production capacities.

The industry norm packaging for durian is by corrugated boxes, drums or foil sealed bags, chipboard and also bottling/tetra pack.

-Corrugated boxes – for fresh or vacuumed commodities

-Drums or Foil sealed bags – for Coffee, Tea and etc.

-Chipboard – for processed food and beverage

-Bottling/Tetra Pack – alternative to canning

Pre-export: For fresh produce, suppliers usually harvest them “unripe or semi-ripe” as they need to consider the travel days before it reaches the client’s destination. For frozen/processed, they usually check if their warehoused products are still in excellent condition as they need to undergo several stages. Before the pandemic, farmers usually bought 1-2x per year from the other farms/farmers to accommodate the client’s order. Most of Philippine’s durian export are sent via airfreight except for Vietnam. Durian from the Philippines to Vietnam are send via sea cargo. A portion of export to Japan are also sent via sea cargo.

1. Customs procedures for exporting agricultural products to foreign countries:

For customs procedures, exporters undergo the same process as other agricultural products such as:

- Customs declaration

- Referral

- Commercial Invoice

- Booking confirmation

These documents need to be attached to the scanned copies of the customs V5 without the need for the original. Additionally, export customs declarations go through the green route to automatically clear customs.

2. Quarantine Procedures, granting Phytosanitary certificates for the export of agricultural products:

For durian, the quarantine procedure is the most difficult, as there are different requirements for handling, classification, preliminary processing, and preservation. Additionally, each market has different ways of processing, handling, packaging, preserving, and quality.

3. Procedures for Issuance of Certificates of Origin - Applying for C/O: 

Applying for a C/O does not require the exporter to provide the norms of raw materials and production processes. Instead, it is only necessary to provide the cleared customs declaration, commercial invoice, airway bill or seaway bill and purchase statement.

• Harvesting
  

Durian should be allowed to fall to the ground so that it is really sweet and mature. The fruit in its own and fermented fruit will reduce the quality in terms of durian content and taste of durian.

• Packaging
  

Fruit is graded on weight, shape, size, and defects. Defects include disease, insects, mechanical injury, and flesh disorders. Since the fruit is packed into Cardboard cartons (4 to 6 fruit per carton), it is important to ensure that there is no direct fruit of the disease or insect as this will cause all the fruit in the cartons to infect and make the fruit is broken and less quality.

• Chilling Sensitivity
  

The pulp of half- to near-full ripe fruit is much less sensitive to chilling injury than the peel, and the pulp can be stored for 4 weeks at 5°C (41°F). Whole fruit stored at less than 15°C (59°F) develops chilling injury consisting of the peel turning black or dark brown, starting at the groove between the splines and will affect durians quality. Chill-injured pulp suffers a loss of aroma, does not soften, and may develop sunken areas on the surface.

• Durian Smell
  

Durian is odoriferous, and all the more so when fully ripe. However, the outside of a perfectly ripe durian doesn’t have the same sharp pungency as the inside. Since the shell of the durian doesn’t contain the same volatiles as the flesh, if the durian hasn’t been broken open yet, either by force of falling or a knife, the odor should remain mostly sealed inside. This varies slightly with the thickness of the shell. If the durian has no smell at all, chances are it’s not ripe. If it smells really strong, chances are it’s overripe. When the fruit is brought close to the nose, one should experience a low level, earthy yet sulfurous smell, like fresh-cut grass and scrambled eggs.

• The Fall
  

When ripe, durians fall off the tree. That’s why durian orchards have such a bad rap – every year, several people are injured or die from falling durians. If the durian fell within the last day, chances are that it’s perfect. Allowing a durian to sit for up to 12 hours improves the flavor (and drug-like effects), but it’s up to personal tastes. Ask the vendor if the durian fell, and how long ago. If the person selling the durians also owns the trees, chances are the person knows exactly what time of day or night that particular durian fell, and from which tree - or exactly how long that particular durian has been sitting around at the stall. Knowing if the durian fell is a good start, but immature durians sometimes get knocked down due to strong winds, rain, animals, or a natural culling process when the tree has too many fruits. In many countries, durians are purposefully cut off the three days before it would have fallen, for transportation or ease of harvest.

• The Joint
  

When a durian falls from the tree, it breaks off at a weakened groove on the stem. The botanical term is “abscission layer”. The stem of a ripe durian, no matter whether it fell or was cut early, should break off at that point. One can test how close to ripe a cut durian is by wiggling the stem – if it’s loose at that point, the durian is close to ripe. If it has broken off already or comes off easily in the hand, the durian is ripe. Mind, the stem should still be fully attached and fresh-looking, with a green hue coming through the brown skin. When the stem is scraped with the thumbnail, the interior should be grass green. If the stem is shriveled, or dark brown, the durian is days old, and chances are it was cut early and has been ripening under a tarp. It may be ripe and taste okay, but the flavor is always better from durian that falls on its own.

• Shake the durian
  

One of the easiest ways to tell if a durian is ripe is to hold it to the ear and shake it. The flesh of a ripened durian is soft, which allows the seeds to bang around inside the shell-like a maraca filled with gak. If the seed is rattling around with no resistance, chances are the durian is overripe. If there is nothing that can be heard or felt, the durian flesh is hard.

• Thump the durian
  

If the durian sounds slightly hollow, it means the flesh has softened enough to recede from the shell, and the durian is at least edible. Various levels of hollowness correlate to levels of softness.

The classification based on variety is the primary factor in purchasing and buying of fresh durian in the inter-regional trade and regional trade. Class A are within 1.5 to 4 kg and follows the expected shape of the variety either oval or ovoid. Varieties with high market demand are the Puyat, Duyaya and COB varieties which are considered as class A. Class B follows the same size but are slightly deformed. Class B durian includes the varieties of Arancillo, D101, GD69 and Chanee.

The country of import may require special documents for a variety of reasons. Business Registration, Updated Business Permit, and any FDA cert, Bill of Lading, Commercial Invoice, Consular Invoice, Certificate of Conformity or Origin, Shipping Bill, Inspection Certification - Product labeling and packaging, Export Cert, Export Packing List and Insurance Cert.

Quality-related issues are quantity verification, deformed packaging, and overripe fruits for fresh orders. The quality of durian in retail stores dramatically depends on how the product is handled during transfer and transport. Even if the durian fruit is sturdy and solid, handling and transporting can cause damage to the fruit, and this is one of the many reasons contributing to damage and losses. For export to China, GlobalGap certification is required. As implemented, like with other product certifications such as for fair trade and organic products, the process of certifying halal is being undertaken by a third-party certifying body. The certifying body inspects the business/enterprises and attests to product standards and guidelines related to product processes, systems, or persons. Foremost, it must conform to the requirements and regulations set by the Philippine Accreditation Bureau (PAB).

Different importing countries have their standards. Some may require corporate or product images on the canned goods or vacuumed frozen goods, while others have to do with issues like language, content labeling, and measurement systems. Even before the pandemic, some countries implemented strict regulations such as quarantine protocols before releasing the product to the buyer, as some countries do not want to receive any insects from the Philippines, such as black ants. Also, an approved protocol is required from Importing Countries. Retailers in China also request a GlobalGap certificate for fresh durian from the Philippines.

The documents required for exporting goods include:

- Electronic Export Customs Declaration (E-Form HQ/2015/XK);

- Bill of lading;

- Contract;

- Certificate of origin;

- Commercial invoice;

- Customs export declaration form;

- Export Permit;

- Packing list; and

- Technical standard/health certificate.

Malaysia’s main trading partners for durians have traditionally been Singapore, Hong Kong, and the US. In 2018, China imported a mere 236 tons, a significantly small figure compared to imports from Singapore which recorded 20.8K tons as only frozen durian pulp and paste exports were allowed to China before 2019.

Since May 2019, Malaysia has been granted access to exporting whole frozen durians to the Chinese market, which has given the country a competitive advantage over Thailand. Although production is lower in Malaysia, Chinese buyers are more inclined to purchase Malaysian durians such as the Musang King variety which better fits the tastes, even though the price range is higher than the Thai counterparts. Malaysia has also struck a partnership with major e-commerce company Alibaba to import the Musang King variety through its platform. With the new agreement in place, exports to China were expected to reach 1,000 metric tons per month.

As of early April 2020, the durian glut has flooded into the domestic market, and durians that were once considered too pricey for domestic consumers have become affordable. Since the Lunar New Year, the lack of demand has caused durian prices to plummet by 20-50%. And as of late February 2020, prices have dropped from RM 55 (USD 12.64) to RM 24-33 (USD 5.52-7.59).

Other than moving durians into the domestic market, some durian traders have started to sell eggs instead in the stalls, which has been in high demand ever since Malaysia has announced a movement control order (MCO). The MCO has also caused complications with durian plantation workers, as many are being sent home to reduce the spread of the virus. This has posed difficulties in production as it is the dry season, in which durians need to be watered frequently, or will drop before ripening. Despite the complications, the outlook for mid-year harvests in 2020 is positive. Domestic sales remain on the downfall as tourism has reportedly dropped by nearly 80% in February 2020, and exports to China have not yet recovered.

The wholesale prices of durian in 2020 for the first leading exporter countries, Thailand, ranged between USD 2.71 per KG (last reported in December 2020) and USD 6.04 per KG (last reported in November 2020). The variety of durian prices were not only determined by the region, but by the condition of the durian size itself. As for durian of the small size, prices ranged between USD 2.71 per KG (last reported in December 2020) and USD 3.26 per KG (last reported in October 2020). For the medium size one, prices ranged between USD 3.20 per KG (last reported in December 2020) and USD 4.24 per KG (last reported in November 2020). Meanwhile, the large size has the highest price among others that range between USD 4.14 per KG (last reported in December 2020) and USD 6.04 per KG (last reported in November 2020). Durian prices have increased from February to March 2020, but from late March until November 2020, the prices have fluctuated. There’s been an increase of 8.7% in the last three months (September - November 2020).

The Philippine durian market faces high competition from countries such as China, Thailand, Malaysia, and Indonesia. Other competing countries include Vietnam, South Korea, and Taiwan. Asian countries mainly dominate the durian market.