Malaysia To Become Increasingly Important Fresh Durian Exporter To China -- BMI
KUALA LUMPUR, Feb 6 (Bernama) -- Malaysia is expected to become an important exporter of fresh durian to China following an agreement cemented last year between the two countries, said BMI.
BMI, a unit of Fitch Solutions, said the agreement signed in June 2024 allowed Malaysia to export fresh durian into China.
It said that before this, Malaysia only exported frozen pulp and whole frozen fruits.
Citing data from the International Trade Center, BMI said Malaysian fresh durian exports to China totalled US$4 million (US$1 = RM4.41) in August, September, and October 2024.
“We forecast continued strong demand for durian fruit from China and therefore expect investment in the sector to increase over the short to medium term while highlighting risks associated with overreliance on one import market,” it added in a statement today.
BMI opined that Malaysia and Vietnam are expected to give Thailand a “run for their money”, with both countries experiencing significant growth in durian exports.
“Over recent years, exports of durian fruit have become an increasingly important source of export revenue for producing countries in the (Southeast Asian) region.
“We expect growing competition in the durian market, with significant growth in exports from Vietnam and Malaysia, which we expect will increasingly challenge Thailand’s status as the largest global exporter,” it said.
Thailand is currently the world’s largest exporter of fresh “king of fruits”, accounting for 63.8 per cent of all exports between 2013 and 2023.
“Thailand’s durian exports have grown at a compound annual growth rate (CAGR) of 22.8 per cent over the past ten years and 8.6 per cent over the past five years, indicative of the strong momentum in the industry,” said BMI.
Therefore, it expects market concentration to decrease in the near term with growth in production and exports from alternative markets.
BMI unit also pointed out that the increasing significance of durian production in Vietnam has also posed a risk to the country’s coffee industry.
To date, Vietnam is the world’s leading producer of robusta coffee beans.
“To the downside, some farmers choose to plant durians instead of coffee. To the upside, increased intercropping can increase farm resilience,” it added.
-- BERNAMA