Malaysia is set to become a key exporter of fresh durian to China, following an agreement formalized in June 2024, according to BMI, a division of Fitch Solutions. This agreement marks a shift from Malaysia's previous exports, which were limited to frozen pulp and whole frozen fruits.
Data from the International Trade Center reveals that Malaysian fresh durian exports to China reached US$4 million during August, September, and October 2024. BMI forecasts sustained demand for durian in China, predicting an increase in sector investment over the short to medium term. However, it also highlights the risks of overreliance on a single import market.
Malaysia and Vietnam are anticipated to challenge Thailand's dominance in the durian export market. BMI notes, "Over recent years, exports of durian fruit have become an increasingly important source of export revenue for producing countries in the (Southeast Asian) region." The growth in exports from Vietnam and Malaysia is expected to challenge Thailand's position as the largest global exporter.
Thailand currently leads as the world's largest exporter of fresh durian, holding 63.8% of exports between 2013 and 2023. BMI reports, "Thailand's durian exports have grown at a compound annual growth rate (CAGR) of 22.8% over the past ten years and 8.6% over the past five years." The expectation is for market concentration to decrease as production and exports from other markets grow.
Additionally, BMI points out that Vietnam's durian production rise poses a risk to its coffee industry, as some farmers opt for durian cultivation over coffee. Nonetheless, increased intercropping could enhance farm resilience.
Source: Bernama
