With Higher Price of Thai Durian, China Welcomes Durian from the Philippines

Published Sep 19, 2022

The demand and fondness for durians is continuously growing in China. The country is importing high volumes of fresh durian from Thailand, which has a share of 90% of the total durian imported by China. In the first half of 2022, the value of China’s durian imports recorded a YoY increase of 82% over the previous year. However, with the current shortage of durians in Thailand due to rainfall, the price of durian is increasing in Thai markets. An increase in domestic prices negatively impacts exports by increasing FOB prices and making durian imports expensive. To diversify its sourcing and meet the demand, China allowed fresh durian imports from the Philippines. This step is likely to be beneficial for both the durian-growing farmer and the Chinese consumer as it will bring a flow of fair-priced durians into the Chinese markets.

Since 2017, China has been importing more fresh durian than beloved cherries in quantity, cementing its place as the king of imported fruit for China. During the COVID-19 pandemic, the supply chain did get impacted due to logistical issues, but the pandemic could not stopt the increasing demand.. According to the General Administration of Customs, in 2017, China imported 224 thousand mt of durian, which increased to 821 thousand mt. The country imported durians worth USD 4.21, which was a YoY increase of 82.4% over 2021. Again, in the first half of 2022, the total durian imports increased by another 60% YoY, making durian one of the most popular imported fruits in the Chinese market.

Nearly 90 percent of durian imported by China came from Thailand. According to the Thai Ministry of Agriculture and Cooperatives, China is the largest export market for Thai durian, and the fruit is ranked among China's fruit imports in both value and quantity. The two countries are strategically located, and it takes around 10 days to move durian from Thailand to China. It takes some 10 days via ocean shipping, and the country is working towards reducing this distance by working on transportation. The government is working on a project which is likely to shorten the distance between the two countries through a high-speed railway, which is due for operation in 2026. According to Tridge's representative in Thailand, Petchpimol, Southern Thailand faced a shortage of fresh durian in the first week of August as production decreased by 50% YoY. This was primarily due to heavy rains in the southern region, resulting in a slow durian supply available for export. The durian shortage increased the wholesale price increases, which is expected to last until November or until other regions start their harvest season.

According to China’s International Import Expo, China's demand for durian has increased durian cultivation and fueled a price increase in Thailand. The wholesale price for a kilogramme of the fruit was anywhere between USD 2 and USD 2.45 last year, which has now increased to USD 3 to USD 4 per kilogram. Higher domestic prices in Thailand have also increased the FOB prices of the fruit entering China. While China already imports a considerable volume from Thailand,the country has recently approved the import of fresh durians from the Philippines. If fresh durians can be exported to China smoothly this time, it will be good news for both Philippine fruit farmers as they will have a thriving market where the demand for the fruit is high. The Chinese consumer on the other hand will benefit from the ample supply of durian at fair prices.