Thai fruit frenzy: Chanthaburi aims to peel away competition

Chanthaburi is set to be promoted as the leading fruit exporter to China by the Commerce Ministry, to drive sales of durian and mangosteen to exceed 3 billion baht. This move has been catalysed by a recently signed memorandum of understanding (MoU) between the Thai-Chinese Agricultural Import-Export Association and the China Fruit Marketing Association.

Commerce Minister Phumtham Wechayachai emphasised that the MoU would ensure market stability, enhance farmers’ earnings and boost the global reputation of Thai fruit. Chanthaburi, a significant source of Thailand’s tropical fruit, is known for its abundant production of seven key fruit crops, namely durian, rambutan, mangosteen, zalacca, longkong, golden banana, and longan.

Through advance contract promotions, the ministry has managed to secure sales of up to 20,000 tonnes of durian and mangosteen, valued at 3 billion baht, with Chinese buyers such as Kaf Import and Export Co. These transactions will occur between April and June 2024 and will be overseen by China Certification and Inspection Centre (CCIC) to guarantee the quality of Thai fruit in the Chinese market.

Chanthaburi’s capacity to produce an impressive 500,000 tonnes of durian annually is noteworthy. The Monthong durian, in particular, fetches a high market price of 260 baht per kilogramme at the start of the season. To prevent the sale of unripe fruit, growers are required to obtain permission from the provincial agricultural office before harvesting durian.

The ministry has pledged ongoing support for durian exports at various Chinese customs checkpoints, including Mohan and the Youyiguan border gate, which Minister Phumtham plans to visit next month.

In 2023, Thailand’s exports of fresh, chilled, frozen, and dried fruit products were valued at 238 billion baht. Durian and mangosteen exports alone accounted for 141 billion baht and 17 billion baht respectively. China remains the main export market for these primary fruits of Chanthaburi.

Mainland China

The ministry operates seven trade promotion offices in mainland China and two outside mainland China, in Hong Kong and Taiwan. According to projections by the ministry’s internal trade department, the 2024 harvest season is expected to see a 4.92% increase in overall fruit production, reaching 716,421 tonnes. This growth is anticipated to be led by durian and mangosteen.

Chanthaburi houses nearly 80% of the country’s fruit crates, with as many as 827 crates meeting good manufacturing practice standards. In preparation for this year’s harvest, the Department of Internal Trade is set to implement 22 measures to manage fruit supply and control export quality.

These initiatives, according to department director-general Wattanasak Sur-iam, will focus on production plans, domestic and foreign marketing, and legal aspects.