The president of the Thailand Durian and Mangosteen Exporters Association recently talked about the impact of the pandemic on production areas in the east of Thailand. Chanthaburi, Rayong, and Trat have all implemented strict measures to prevent the spread of Covid-19. These measures have an impact on fruit export as well, especially the export of durian. The first lockdown has already had a serious impact on the export market, but now the products from Thailand have to go through inspection and certification on every route into China. These measures are meant to give Chinese consumers confidence, but it also means that Thai export products are significantly delayed.
Fruit importers are slowing down their purchases because there have been situations where fruit was stuck at the border. If the government does not bring the spread of Covid-19 under control, then the durian industry in east Thailand will suffer. The plantations in east Thailand produce more than 1 million ton of durian this month and the harvest season begins in the middle of January.
This is still the export season of durian from south Thailand. Only 50% of the production volume made it across the border because the customs procedures are much more severe since the outbreak of Covid-19. These procedures significantly raise the cost price for producers and retailers. Some traders negotiate lower prices with plantation owners. Durian used to cost around 160-170 Thai baht [5.31-5.65 USD] per 0.5 kg, but that price is now around 120-130 Thai baht [3.99-4.32 USD] per 0.5 kg. If farmers do not cut their prices, then traders can not export the durian, and they lose any deposits they have already received. This could be a financial loss in the millions.
In addition, the provincial secretary of foreign trade stated that he received reports from the Chanthaburi Chamber of Commerce and durian exporters that durian from nearby countries are falsely marketed as "produced in Thailand". Furthermore, these durian enjoy preferential taxation services. According to the provincial secretary, this practice is harmful for the reputation of Thai durian. The secretary of foreign trade has already placed many different durian products on a watch list to make sure the authentication process is strict and detailed.
Data shows that Thailand exported 631,394 tons of fresh and frozen durian in the period of January until October 2020. The total export value reached 69.15 billion Thai baht [2.30 billion USD]. That is a slight decline of 4.2% in comparison to the export volume in the same period in 2019, but an increase of trade value of 42.9%. The most important export markets for Thailand are in order of importance: mainland China, Hong Kong, and Vietnam.
Source: Thaiheadlines.com
