The Chinese Spring Festival [12 February, 2021] is always a busy time of the year for fruit traders. This year, however, the Covid-19 pandemic proved to be a significant challenge for the market.
Datuk Vincent of Shanghai Youxiang Trade Co., Ltd. recently shared his insights into the market for Malaysian Musang King durian. He analyzed the fruit market during the period leading up to Chinese Spring Festival, and talked about market development trends.
The period leading up to Chinese Spring Festival is a peak period for Malaysian Musang King durian sales. This year the Covid-19 pandemic created obstacles for transport, and weather conditions had a negative impact on the production volume. The overall price increased as a result, and the transport cost further pushed the price up.
According to Datuk Vincent, "these conditions all combined to create a situation of extreme difficulty for the Musang King durian trade. We expect the price of Musang King durian to remain high for quite some time."
Malaysia is currently in lockdown. The Malaysian government prohibits gathering in groups, and every box of durian has to be disinfected before transport. These measures add to the cost price of labor and the cost price of transport.
According to Datuk Vincent, "the lockdown actually stimulates interest from domestic and overseas consumers, but the situation also changes consumption patterns. Consumer primarily purchase online."
Datuk Vincent (left), the COO of Shanghai Youxiang Trade Co., Ltd, and Cai Fang (right), the CEO, wish all their customers a prosperous New Year!
Overall market demand for Malaysian Musang King durian is still rising, but the export of Malaysian Musang King durian to China is not as positive. There are several reasons for this situation. First, lockdown measures have created obstacles for transport. There are backlogs in Malaysian ports. Second, there are backlogs in Shanghai. Customs procedures take longer as the products need to be tested and disinfected. These measures add complications. Many shipping containers arrived 2-3 weeks later than expected. This has a huge impact on sales in the period leading up to Chinese Spring Festival. Many importers lost out on golden opportunities because their products arrived late.
While Malaysian Musang King durian are struggling with a difficult market, the durian production season in Thailand quietly started. "The production volume of Thai durian is large in comparison with Malaysia, and the price is cheaper. Furthermore, they can be sold as fresh durian, whereas the Malaysian durian are sold as frozen fruit. The arrival of Thai durian has an impact on the market conditions of Malaysian durian, but the overall threat is not that great. Malaysia and Thailand produce durian for two very different consumer groups. They complement each other. Thai durian are cheap, and the product quality of Malaysian durian is better, as is their flavor," explained Datuk Vincent.
Malaysian Musang King durian
Considering the market recognition of Malaysian Musang King durian, Datuk Vincent is still quite pleased with its performance in China. The Musang King durian belongs in the top class when it comes to flavor and product quality. That is why this durian variety gained so much popularity. In addition, as the Musang King durian and D197 durian varieties have gained fame in the Chinese market in the last few years, their consumer audience also changes. Many imported fruits suffered from the consequences of the Covid-19 pandemic, but the Musang King durian stands out in the market. This durian variety is gradually becoming the favorite of high-end and mid-range consumers. The Musang King durian is no longer just the fruit for young, fashionable consumers.
This year the fruit market struggled, both in terms of import and retail, but Datuk Vincent has confidence that after these difficulties pass, the fruit market will bounce back and continue to grow.
For more information:
Contact person: Cai Fang - CEO
Shanghai Youxiang Trade Co., Ltd.
Tel.: +86 400 1542 754
E-mail: sophia.cai@malaiwang.com