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Malaysia and Vietnam challenge Thailand in China's durian market

Thailand has long been recognized as a leader in durian exports, particularly to the expansive Chinese market. However, Malaysia and Vietnam are emerging as formidable competitors. On 24 August, a chartered flight from Malaysia to China carried 1,500 crates of durians, showcasing the country's intent to penetrate the Chinese market with fresh durian varieties, including the sought-after Musang King. Despite the high price tag of approximately US$80 per Musang King durian in Shenzhen, the entire stock was sold out within hours, as reported by Malaysian Agriculture and Food Security Minister Mohamad Sabu.

Malaysia's entry into the fresh durian export sector to China in June 2024 marks a significant milestone, following years of exporting frozen durian products. Fresh Malaysian durians, known for their richer flavor and softer flesh due to natural ripening, face challenges such as a shorter shelf-life and logistical demands for cold-chain transportation to ensure freshness upon arrival in China. The establishment of a green channel at Zhengzhou Xinzheng International Airport's customs facilitates the swift clearance of these perishable goods.

Despite the potential for lucrative returns, Malaysian exporters remain cautious, with many adopting a wait-and-see approach to gauge the market's stability and logistical feasibility. Lye Wee Tin of PHG Ever Fresh Food in Raub, Pahang, highlighted the geographical and production volume advantages that Thailand and Vietnam hold over Malaysia. Nevertheless, the recent export of fresh durians to China has prompted Malaysian exporters to consider expanding their operations, without compromising on the natural ripening process that distinguishes Malaysian durians.

The export of fresh durians has raised concerns among Malaysian and Singaporean consumers about potential price increases. The first batch of fresh Musang King durians sold in China fetched prices three times higher than in Malaysia, prompting speculation about the impact on local markets. However, industry experts believe that as durian plantation technology improves and yields increase, prices will stabilize.

Meanwhile, Vietnam, having gained approval to export fresh durians to China in July 2022, is quickly ascending in the ranks, challenging Thailand's dominance. With its strategic land connection to China, Vietnam benefits from lower transportation costs and faster delivery times. Despite the rapid growth, concerns about over-cultivation and quality control have prompted the Vietnamese government to implement measures to ensure sustainable and compliant durian production.

As Malaysia and Vietnam continue to develop their durian export capabilities, the competition with Thailand intensifies, potentially reshaping the dynamics of the Chinese durian market.

Source: Think China

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