By Vijian Paramasivam
PHNOM PENH, Nov 17 (Bernama) -- Durian may be the most off-putting fruit on earth, yet it stands as the best-selling commodity, rivalling traditional cash crops that farmers have been planting for decades.
Despite its unpopular smell and spiky thorns, durian has become a significant export product in Indochina economies -- Cambodia, Laos, and Vietnam.
Local farmers are now competing to capture the rapidly growing Chinese market, which imported nearly RM200 billion or US$46.7 billion worth of fresh durians, according to the General Administration of Customs, making China the world’s largest buyer of this fruit.
Durian is certainly living up to its nickname the “king of fruits” as the entry of new varieties is pushing once-popular cash crops such as cashew nuts, peanuts, pepper and sugarcane into the back seat.
Thanks to the Chinese consumers who have developed a new liking for the delicious yellow creamy fleshy fruit that traders once struggled to sell in their local markets, exporting was a distant dream.
Billion-dollar export figures are staggering with Vietnam and Thailand leading the pack as major growers in the region.
“By the end of September 2024, Vietnam’s durian export turnover reached a record US$2.7 billion (RM11.6 billion).
“In contrast, in the first eight months of this year, Vietnam spent nearly US$9 million (RM38.7 million) to import durians from Thailand and Malaysia.
“This represents a dramatic increase in durian import turnover, which rose nearly 11.6 times compared to the same period in 2023,” Hanoi-based Dezan Shira and Associates analyst Vu Nguyen Hanh told Bernama in an email interview.
HSBC Bank forecasted last year that the demand for durians could rise by up to 400 per cent annually, primarily driven by the growing popularity of durians among China’s 1.4 billion people.
Thailand is poised to remain the main exporter to China worth nearly RM11.9 billion (US$2.76 billion) due to varieties like Monthong that give a creamy texture.
However, Vietnam Fruit and Vegetable Association is confident that its farmers could export durians worth nearly RM14 billion (US$3.5 billion) in 2024.
Fresh and frozen durian grown in Vietnam is exported to 22 countries with China being its main market.
Competition is rising. Cambodia and Laos are holding high-level talks with Chinese investors to woo investments and technology to develop durian farms in their respective countries to explore international markets.
China’s agriculture company, Zhengzhou Chen’s Sun is exploring durian cultivation and setting up processing facilities in Cambodia.
Cambodian farmers plant durians on about 5,000 hectares and produce 36,600 tonnes yearly. Its popular native varieties are Man Tong and Jouhot.
Next door, the Lao Agricultural Business Association is inviting Chinese agricultural importers to help develop its nascent durian plantation sector.
According to the association, 20,000 hectares are designated for durian plantations, producing approximately 900 tonnes of durians.
The association aims to increase production to 24,300 tonnes of durians by 2029, generating RM671 million (US$156 million) for its economy.
While thorny durians are offering rosy livelihoods for regional farmers, growers are wary of climate change impacts that could hurt production and a supply glut may dampen prices in the global market.
However, industry experts are predicting exciting times for durian growers in Indochina as trade barriers in ASEAN are slowly disappearing and improving land connectivity and cross-border cold chain logistics can boost trade.
And, the Regional Comprehensive Economic Partnership (RCEP) covering 16 economies could further intensify regional trade by improving the trading environment with lower tariffs.
Laos is already developing its RM3 billion integrated logistics facilities in the capital - the Thanaleng Dry Port and Vientiane Logistics Park.
Two key land transportation networks - the Laos-China Railway launched in 2021 and the cargo ASEAN Express train connecting Malaysia, Thailand, Laos, and China launched in July this year — are likely to change the dynamics of the agriculture business.
-- BERNAMA
