Overview of Malaysian Durian Production, Export, and Price

Production

In the past 5 years, the harvest area for durian in Malaysia has been growing, as durian is one of the most profitable fruits for farmers and exporters. The Malaysian durian industry also receives a lot of support from the government. For example, the government helps market Malaysian durians across the world and educates farmers on production techniques, as durian is a difficult fruit to grow. In addition, the government also subsidizes farming lands for durian.

Of the several varieties of durian produced and exported in Malaysia, the Musang King variety is the most popular variety. Around 65%-70% of Musang King variety is produced in the states call Pahang, located in central Malaysia. The area is hilly and mountainous and has moderate weather due to the high altitude. The hilly landscape allows the durian trees in this region to absorb less water because less water is stored in the soil as water runs off the hill when it rains. This allows durians grown in this region to be less watery and have firmer, stickier textures.

In 2018, the Musang King production volume was between 18K tons and 25K tons and the production is expected to increase by 15%% in 2019. According to TRL South East Asia, production volume is expected to reach 40K-50K tons in the next five years.

Competition and Price

The Musang King variety is very popular both domestically and internationally, states TRL South East Asia. Firstly, compared to other varieties such as Dalit or Black Thorn, the Musang King variety has a longer shelflife of 8 days, which is approximately 2 days longer than other varieties. Secondly, the quality and taste of the Musang King variety are more consistent compared to other varieties, as this variety is less prone to damages from weather conditions. Thirdly, the variety has smaller seeds than other varieties so there is more flesh available for consumption.

The biggest competition for Malaysian durians comes from Thailand. In the global market, Thai durians are priced lower than the Malaysian durian and have longer shelf lives, because Thai producers control the ripeness of their exported durians. Whereas Malaysian producers only harvest 100% ripe durians that have fallen from the trees, Thai producers harvest durians before they are fully ripened to increase their shelf lives. According to TRL South East Asia, Malaysian producers can also harvest their durian at lower ripeness to increase the shelf life. However, harvesting the durians early compromises their quality and the Brix level does not reach its maximum potential. As a result, the Malaysian Musang King variety is creamier and sweeter than the Thai Monthong durian, the main exported variety by Thailand. The Brix level for the Musang King variety is between 39 and 44 whereas the Brix level for Monthong variety is only between 26 and 28, states Adrian Yoong Chun Fah, sales director from TRL South East Asia.

The price of Malaysian Musang King durian is higher than Thai Monthong durian. During the peak season between July and August, the FOB price is around 6 USD per kg and the price goes up as the supply goes down. Currently, the Malaysian durian supply is low and as a result, the FOB price is 21.5 USD per kg. As durian production in Malaysia is expected to increase at a rapid rate over the next few years, the prices are also expected to decline in the future.

Global Market and Market Prospects

Malaysia is the 3rd largest durian exporting country in the world, following Thailand. In 2018, Malaysia exported around 23.4K tons of durians valued at around 30 million USD. 90% of the total export volume of Malaysian durians goes to Singapore. Although durian is mainly consumed in Asian countries, the demand for durian is growing in the West due to an increasing number of Asian immigrants in countries such as the US, Canada, the UK, and Australia.

China is the largest market for durian in the world. In 2018, China imported around 1.1 billion USD worth of durians, representing 60% of the global import value. Unfortunately, Malaysia cannot export fresh durians to China. However, starting May 30th, 2019, the Chinese government granted permission to Malaysian exporters to export frozen durians to China. The opening of the Chinese market presents opportunities for Malaysian durian exporters such as TRL South East Asia. In 2019, 65% of the company’s durian exports will be frozen. Besides frozen whole durians, the company also exports frozen durian pulp and paste.