Chinese durian market far from saturated
Durians on the Chinese market are mainly imported from Thailand, Malaysia, and Vietnam. Only Vietnam has obtained permission to import fresh durians to the Chinese market. At the same time, Thailand also exports refrigerated durians to China. Malaysia started to export refrigerated durian in 2011, and Vietnam is only allowed to export a small amount of durian via the border trade with China. As far as policy and interest is concerned, Thailand remains in a stable first position on the Chinese market for imported durians.
The leading competitors on the Chinese market are durian from Thailand and durian from Malaysia. There is a greater variety of Malaysian durian, with more than 200 registered varieties. At present, there are only two registered domestic varieties: Maoshan Wang (D197) and Sudan Wang (D24). The two main varieties on the market are Jin Zhentou and Maoshan Wang.
Not everyone enjoys the flavor of fresh durian, but the products that are derived from durian receive widespread attention. It does not matter whether fresh durian or refrigerated durian is processed into food products, the final product is not restricted by regulations on fresh fruit. Food and drinks with processed durian have deeply infiltrated the market and have spread rapidly throughout the country.
Working with fresh durian products has numerous risks. First, it is very difficult to see with the naked eye whether the fruit quality of durian is high or low. Although Thailand has specialists who supervise fruit selection, they only rely on experience, and not one person can give a 100% guarantee that the inspected durian is without problems. Second, durian ripens after it is harvested. Controlling the ripening process is crucial and depends on the actual ability of each individual processing factory. Third, it is difficult to regulate the temperature of durian during transport. It is vital to maintain the right temperature, or the fruit will spoil. If the temperature is too high, then the fruit will rot. If the temperature is too low, then the fruit will suffer from frostbite. Fourth, the base cost of durian is high. If there are sudden and unexpected conditions that delay the harvest for too long, then the fruit will spoil, which results in relatively high losses for the farmers. Apart from this, there are more and more Chinese traders who travel to durian production areas in Thailand to select and purchase durian. This drives up the purchasing price, which causes the overall cost of the operation to increase.
Although there are quite a few risks, the durian market in China is far from saturated, and there is plenty of room for development. In addition, the natural resources in production areas show little change, because durian trees need to grow for 6-8 years before they bear fruit. For this reason, the production capacity will not suddenly expand and exceed market demand.
Publication date: 2/21/2018
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