W49 Durian Update: Malaysia's Fresh Durian Export Venture into China's Market in 2024 Amidst Growing Vietnamese Durian Export Success

Malaysia Ventures into the Chinese Market with Whole Durians in 2024

Malaysia will export fresh durians to the Chinese market in 2024, marking a new business opportunity for Malaysian farmers. This initiative aligns with the 50th anniversary of Malaysia-China diplomatic relations. Malaysia is only permitted to export frozen durians to China in the forms of whole fruit, pulp or paste since 2011 while Thailand and Vietnam are allowed to export fresh durians. The new protocol submitted to China in Aug23 addresses the short shelf life of fresh durian, offering a new avenue for Malaysian durian farmers for the 2024 season. Malaysia achieved 108.9% self-sufficiency in durian production in 2022, producing 455.4 thousand metric tons (mt).

Japanese Quarantine Agencies Take Action Against Vietnamese Durian Exports

Japanese quarantine agencies destroyed 1.4 tons of Vietnamese durians due to procymidone exceeding the 0.01 parts per million (ppm) limit in Japan. While procymidone is allowed in both countries, the varying stringencies create discrepancies. Vietnam's third-largest export market for agricultural, forestry, and fishery products is Japan, accounting for 7.4% of total exports from Jan-23 to Oct-23. Vietnam's vegetable and fruit exports to Japan exceeded USD 150 million during this period, with a 12.3% year-over-year (YoY) decrease for fresh durians and an 8.3% YoY increase for frozen durians.

Vietnam Surges as Second Largest Durian Exporter to China's Increasing Market in 2023

The Vietnam Fruit and Vegetable Association (VINAFRUIT) reports that China imported nearly 1.3 million tons of durian in the first ten months of 2023, an 88.3% YoY increase. Thailand is the largest durian supplier, with almost 904 thousand tons, a 27.7% YoY increase. Vietnam, the second largest supplier, ranks first in growth rate, with a total value of USD 6.37 billion.

Moreover, Vietnam's fruit and vegetable industry has seen a record-breaking export value of nearly USD 2.1 billion over ten months, driven by increased purchases from China. Durian, the leading fruit, accounts for 51% of Vietnamese fruit and vegetable exports. Fresh durian accounts for 94% of the total export turnover, reaching eight countries globally. China holds a dominant market share of 97% in the Vietnamese market, equivalent to nearly USD 1.9 billion. Durian exports to the Czech market have surged 28-fold increase YoY. Vietnam is closely tracking Thailand and surpassing Malaysia and the Philippines in the Chinese market.

Vietnamese Durian Prices Surge Amidst Off-Season and Growing Chinese Demand

Vietnamese durian prices have increased due to the off-season and growing demand in the Chinese market. The central plateau region, Đắk Lắk Province, has seen its durian production exceed 200 thousand tons, leading to higher prices. The Mekong Delta region also experienced a slight increase in prices. The Musang King durian price, which once stood at USD 3.30 to 4.12 per kilogram (VND 80,000 to 100,000/kg), has nearly doubled. The Plant Protection Department of the Ministry of Agriculture and Rural Affairs of Vietnam is soliciting opinions on a draft standard for exporting frozen durian to China, which requires hand-selection, registration of orchards, clean packaging, and compliance with international food safety and hygiene standards.