W32: Durian Update
In W32 in the durian landscape, durian prices in Vietnam have surged by 50% in a month, reaching USD 4.20 per kilogram (kg) (VND 100,000/kg). Since Jul-23, the increase has been about 54% and twice as high as last year. A 1-hectare (ha) durian farmer expects an 18-ton harvest in 2023. Despite receiving offers at VND 100,000/kg, he has decided not to sell. The volume of trading transactions has increased several times compared to the previous year. Many people, previously involved in the real estate industry, are now flocking to Dak Lak Province to purchase durians at high prices, further driving up the prices.
On July 19, the Lam Dong Provincial People's Committee urged the Department of Industry and Trade and Agriculture and Rural Development to support Đạ Huoai district's durian production and consumption. The committee aims to expand consumption on domestic and international markets, avoiding excessive dependence on one market. In Vietnam, Đạ Huoai district's durian area covers 6 thousand ha, with 3.5 thousand for business and 40 thousand tons of output. Durian prices range from USD 1.89-2.18/kg (VND 45,000-52,000/kg) for Ri6 and USD 2.52-2.94/kg (VND 60,000-70,000/kg) for Dona.
The Chinese President and the Indonesian President proposed investing in durian plantations in Indonesia. Indonesia's Chief Investment Minister Luhut Binsar Pandjaitan aims to cultivate 5 thousand ha of durians, with 70% of the yield directed towards the Chinese market. If Indonesia captures 25 to40% of the market, the value could reach USD 1.5 billion. The Chinese advisory body, the Development Research Center of the State Council, is interested in the venture. Durian imports from Southeast Asian countries have grown rapidly, but China's sources remain limited. Indonesia's durian production is comparable to Thailand's, with 1.3 million metric tons (mmt) in 2021. However, exports remain modest at 500 thousand tons. Durian cultivation is concentrated in provinces like East Java, West Sumatra, Central Java, North Sumatra, and West Java. China's investment in Indonesia is USD 8.2 billion, second only to Singapore's USD 13.3 billion.
