W18: Durian Update

In W18 in the durian landscape, it was reported that the durian prices in the Mekong Delta region in Vietnam have dropped by 30-40% to USD 2.13-2.34/kg (VND 50K-55K/kg) since early April 2023. Prices in the localities of Tien Giang, Ben Tre, and Can Tho have plummeted 70% since February 2023. In addition, the reason the price of Vietnamese durian has plummeted is due to the high harvest season in the West of Vietnam, especially in Tien Giang. Vietnam's durian export turnover for Q1 of 2023 reached USD 153.5M, an increase of 8.3 times over the same period in 2022. China accounted for 87% of the market share with a turnover of USD 133.6M. The Ri6 durian, a variety of durian that is grown mainly in the Mekong Delta, Vietnam has become available on the UK market due to the UK-Vietnam Free Trade Agreement (UKVFTA). On the other hand, the Durian price in Indonesia increased from USD 0.34 (IDR 5K) for a small durian to USD 0.68 (IDR 10K) due to higher supply.

Philippine durians are competitive with Malaysian and Thai variants in the Chinese market. The Philippines President Ferdinand Marcos Jr. signed a USD 2B contract for durian exports to China to promote export growth. In June 2023, China will harvest its first crop of domestic durian, with orchards on the island of Hainan anticipated to produce over 2KT of durians. Sanya serves as the production base, and 3,333ha of durians will be planted there over the next three to five years. According to analysts, this might lower domestic prices, intensify "dual circulation," and promote global agricultural cooperation.

Phee Boon Poh, chairman of the Penang state environment and welfare committee in Malaysia, has proposed to the Penang Island City Council and Seberang Prai City Council that the skin of the durian must be disposed of properly before issuing temporary licenses to stall operators. He also proposed that the state agriculture department set up a shredding facility in durian orchards to reduce the number of dengue cases due to the concave surface of the skin. The Ministry of Agriculture and Food Security (KPKM) is implementing six steps to ensure the Malaysian durian market is of good quality and not affected by China's self-cultivation. One step is increasing the need to export the king of fruit to existing importing countries. Further, durian farmers in Balik Pulau, Penang in Malaysia lost millions of ringgit after a violent storm damaged over 2K trees and caused some to prematurely drop their fruits. A durian farmer in the region lost over USD 224K (RM 1M) after the storm devastated 40ha of his 90ha farm. Lastly, Thailand’s Bangkok Mass Transit Authority has prohibited passengers from bringing durians on its buses as a result of a 2014 order from the Transport Ministry. The country's durian sales may be impacted by this.