W36: Durian Update

In W36 in the durian landscape, China's durian demand accounted for 91% of the global market, with total imports worth about USD 6 billion in the past two years. The global durian sales in Q1-23 increased by 400% year-on-year (YoY). 90% of the world's durian supply comes from ASEAN member states, an increase of 60% compared to seven years ago. The "Regional Comprehensive Economic Partnership Agreement" (RCEP) signed between China and ASEAN member states last year, which reduced taxes and simplified customs procedures, will help accelerate the import and export of durian. Thai durians accounted for 70% of the 91 thousand tons of fresh durians imported by China in Q1-23.

In Vietnam, Thai durian prices fluctuated in all three primary areas across the country on September 10, both high-quality and large varieties experienced a price decrease. Bulk durian prices decreased by USD 0.083 per kilogram (VND 2,000/kg), while high-quality durians dropped even more to USD 0.21/kg (VND 5,000/kg). Meanwhile, Ri6 durian prices temporarily stood at USD 1.86/kg to USD 2.15/kg (VND 45,000/kg to 52,000/kg). In the Southwest region, high-quality Ri6 durians are priced at USD 2.27/kg to 2.44/kg (VND 55,000/kg to 59,000/kg), while Ri6 durian prices remain stable. In the Southeast region, high-quality Ri6 durian prices are at USD 2.27/kg to USD 2.40/kg (VND 55,000/kg to 58,000/kg), while Ri6 durian prices are at USD 1.86/kg to USD 2.07/kg (VND 45,000/kg to 50,000/kg). High-quality selected Thai durian prices are down USD 0.21/kg (VND 5,000 VND/kg) compared to the September 9 price, while buckets cost USD 2.81/kg to 2.97/kg (VND 68,000/kg to 72,000/kg). In the Central Highlands region, high-quality Ri6 durian prices remain unchanged, while Ri6 durian prices are at USD 1.86 to 2.07/kg (VND 45,000-50,000/kg). The prices of Thai durians have also risen in the Southeast region.

Lastly, the Philippine media reports that the Davao Region, the country's main durian-growing area, will need to expand its durian farming to take full advantage of global trade opportunities. The President of the Durian Industry Association of Davao City aims to target 15 thousand hectares (ha) of expansion over the next five years. The Philippine Department of Agriculture has prioritized the Durian Plantation Expansion Plan, which includes the distribution of Puyat durian seedlings to Davao growers and efforts to enhance their production, with an estimated investment of USD 3.16 million. Negotiations concerning durian exports are underway with several countries and regions, including Australia, Japan, South Korea, the United States, and the European Union. Exploratory talks have also begun with some Middle Eastern countries and Pakistan. The association is also hoping to ship durians to Kazakhstan via Chinese ports. The Philippines exports multiple varieties of durians, including Puyat, D101, Duyaya, and certain Malaysian cultivars.