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Why is the price of durian in China not coming down?

China also produces domestic durian, but their price is not coming down. Why is that?

1. The durian market mainly relies on imported durian.

2. The production volume of domestic durian is small.

Domestic durian are only produced in a small part of Hainan. Some durian plantations are quite successful, but they do not supply durian in sufficient volumes to satisfy the market. Furthermore, the flavor and smell is not as good as that of imported durian. However, because the production volume is quite small, domestic durian have no way of competing with imported durian.

3. Durian have difficulty entering the Chinese market.

Even though there are many durian production areas in nearby countries, the strict import requirements make it difficult and expensive to import durian into the Chinese market. The volume of durian that meets the requirements is limited.

4. Domestic demand is too large.

Underlying the first three points is one main factor, the Chinese market demand for durian is simply too large. The number of Chinese consumers eager to taste the unique flavor of durian continues to grow as the disposable income of Chinese consumers continues to rise. More and more people buy durian, but the supply volume is insufficient, which naturally keeps the durian price high. Under these circumstances it is near impossible for the price of durian to come down.

Source: Love Family Food

 

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