Southeast Asian durian exporters unfazed by Chinese competition

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Southeast Asian durian exporters remain confident about their market position despite China’s attempts at domestic durian production, though concerns are growing about potential oversupply and weakening demand in the Chinese market.

Industry leaders gathering at the China International Import Expo (CIIE) in Shanghai dismissed worries about competition from Chinese-grown durians, particularly those from Hainan province.

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Jeremy Chin, Managing Director of Malaysia’s LKE Group, points out that China lacks sufficient suitable land for large-scale durian cultivation, despite its advanced technologies. He argues that Malaysia’s unique combination of technology, geography, and climate gives it a significant advantage.

The cost difference is particularly striking, according to Albert Liu of the Durian International Association. While Southeast Asian producers can grow durians for around 20 yuan (approximately 95 baht) per kilogramme, production costs in Hainan can reach 60 yuan per kilogramme, largely due to the need for greenhouse cultivation.

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Hainan’s nascent durian industry, while ambitious, remains minimal in scale. Its first commercial harvest in the previous year yielded just 50 tonnes – a mere 0.005% of China’s total durian consumption. Though production is expected to quadruple to 200 tonnes this year, recent typhoons have caused significant crop losses.

However, the industry faces other challenges. Terry Lin from Agrionex warns that the current golden era of durian in China may be transitioning to a silver era within five years due to potential oversupply issues.

This comes despite impressive growth in Chinese imports, which reached 1.4 million tonnes valued at US$6.7 billion last year, marking a 70% year-on-year increase.

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Chinese consumption patterns also present both opportunities and challenges. Current per capita durian consumption in China stands at approximately one kilogramme, significantly lower than Malaysia’s 13 kilogrammes and Thailand’s 4 to 5 kilogrammes.

However, high retail prices, with a single Thai durian costing 100 to 150 yuan in Shanghai supermarkets, and general consumer spending caution may limit growth.

Industry experts are also concerned about quality control in the rush to meet Chinese demand. The Durian International Association advocates for unified quality standards and increased technological implementation to ensure consistent quality, suggesting collaboration with Chinese research institutions to achieve these goals, reported Bangkok Post.

Thailand News

Ryan Turner

Ryan is a journalism student from Mahidol University with a passion for history, writing and delivering news content with a rich storytelling narrative.

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