W39: Durian Update

In W39 in the durian landscape, on September 26, there was a continued decrease in durian prices in Vietnam's local market. Beautiful Thai durians were priced between USD 2.54 and 2.75 per kilogram (VND 62,000 to 67,000/kg), dropping by USD 0.12/kg (VND 3,000/kg) compared to the previous day. Ri6 durians were priced highest at USD 2.42/kg (VND 59,000/kg) in some areas and between USD 1.85 and 2.13/kg (VND 55,000 to 59,000/kg) in the Southwest region. In the Southeast region, Ri6 durians were priced at USD 2.3 to 2.38/kg (VND 55,000 to 58,000/kg), remaining unchanged from the day before. The Central Highlands region also had unchanged Ri6 durian prices at USD 2.26 to 2.38/kg (VND 55,000 to 58,000/kg).

However, on September 27, there was a surprising rebound in durian prices in Vietnam. Beautiful Thai durians were priced between USD 2.87 and 3.07/kg (VND 70,000 and 75,000/kg), representing an increase of USD 0.33/kg (VND 8,000/kg) compared to the previous day. Despite this change, Ri6 durian prices remained consistent, with the highest price at USD 2.42/kg (VND 59,000/kg) in primary areas and the Southwest region continuing to have prices ranging from USD 1.85 to 2.13/kg (VND 55,000 to 59,000/kg). The prices for Ri6 durians in the Southeast region and the Central Highlands region also remained unchanged at USD 2.3 to 2.38/kg (VND 55,000 to 58,000/kg) and USD 2.26 to 2.38/kg (VND 55,000 to 58,000/kg), respectively.

In the Philippines, limited durian supply is hindering the country from fully tapping into trade opportunities with China, especially with the popular "Puyat" variety. The price difference is substantial, with this variety selling for USD 12.36/kg at trade fairs, while in Davao City, it's priced at USD 1.77 to 2.21/kg. This significant gap makes durians in China nearly seven times more expensive than in the Philippines. From Jan-23 to Aug-23, the Philippines exported 917 metric tons (mt) of fresh durian to China, worth USD 3.54 million, which is considerably lower than Thailand's 824 thousand mt valued at USD 4.04 billion and Vietnam's 271 thousand mt valued at USD 1.18 billion. Potential buyers in southern China are seeking sources of durians, but Philippine suppliers are unable to meet the demand due to capacity limitations.

Davao, the third-largest city in the Philippines, contributes 80% of Vietnam's durian production. Davao's durian is known for being pest-resistant and having high yields, making it popular in international markets like Thailand, Malaysia, South Korea, and Singapore. The peak durian season in Davao is from July to October, with the "Puyat" variety being the most important and popular. Therefore, the Department of Agriculture in Davao plans to expand durian plantations by 15 thousand hectares (ha) during the development plan for 2024-2029, with an estimated cost of USD 3.18 million. The primary focus for durian growers is to produce more marketable varieties such as Puyat, D101, Duyaya, and certain Malaysian durian varieties.

The General Secretary of the Vietnam Fruit and Vegetable Association noted that Sept-23 is the peak harvest season for Vietnam's largest durian region, the Central Highlands. In contrast, durian production in other countries is winding down, with limited fresh output or primarily frozen products. This situation presents an opportunity for Vietnam to boost its fresh durian exports. There is a forecast that the export value of durian in 2023 could surpass USD 1.5 billion.

Lastly, the harvest of the domestic durian variety in the western region of Java Island, Indonesia, has yielded excellent results in 2023, following two years of poor results due to weather-related issues. Java Island is known for producing local durian varieties, which are favored by consumers over the Monthong variety. The harvest season for these local durian varieties extends from September to November, with two harvest periods in a year, with the current period being the peak season.