webfact Posted September 23, 2019 Share Posted September 23, 2019 Thailand’s durian market: Boom or bust? By Krittaya Sangkasem Sirada Siribenchapruek Nillawan Fufuengsin Southern Region Office, Bank of Thailand According to a study conducted by the Bank of Thailand’s Southern Region Office, the supply of durian has been rising since 2016 in line with rising prices. Most of the durian is grown in Chanthaburi and Chumphon provinces, with the three southern border provinces – Pattani, Narathiwat and Yala – making up the difference. Of the durian exported, 95.8 per cent is fresh and the remainder frozen. Up to 77 per cent of durian grown in the country is sold to China. China’s role in the Thai durian market Research indicates that demand for durian from China has risen sharply. Currently, there are more than 600 Chinese companies that import durian or lhong from Thailand, because the local monthong variety is sweet, creamy and comes at an affordable price. How Chinese entrepreneurs approach the market Chinese businesses have been investing in the Thai durian sector for more than 20 years now but have only very recently accelerated their purchases. Now, the food-processing industry has become a key player, allowing Chinese entrepreneurs to become part of the supply chain, which in turn has boosted the demand in Thailand. This upstream-downstream supply has also spawned jobs and investment, but the negative consequence of this is that Chinese vendors can completely control the price. This disadvantage may create a problem for farmers and the future of the fruit in Thailand. However, a study has found that Thai durian will maintain its market provided its standard is maintained. The supporting factors are: 1. With continuous demand, the market in China can be expanded; 2. Competitors do not have the permanent right to export durian to China like Thailand does; 3. The quality of Vietnamese monthong durian does not match that of monthong durian from Thailand, while Malaysia’s musang king durian is three or four times more expensive; 4. Processing factories currently control supplies and maintain the price. Risk factors: 1. Global supply will rise in the next four or five years and competitors will become stronger; 2. Thailand’s only major exporter of durian is China and there is no sign of a new market; 3. The quality of Thai durian is inconsistent despite increased production; 4. Vietnam is improving its monthong variety with full support from the government. How will the Thai durian market adapt? Though the future of the durian business is still bright, Thailand has to be cautious. The goal is to expand the market, improve quality, reduce costs and coordinate with related parties to achieve sustainability. The government also needs to find other markets like India, so Thailand doesn’t have to just rely on one market. It also has to enhance research and development along with agricultural knowledge to improve yields and also promote the use of durian skin in other applications to reduce waste. The government must also encourage farmers to select suitable durian growing areas and provide subsidies. Farmers, meanwhile, have to improve the quality of farming based on good agricultural practices and minimise the use of chemicals. They also need to explore new methods to improve the yield, especially in the southern provinces, and coordinate with sellers go gain more bargaining power with Chinese vendors. Source: https://www.nationthailand.com/news/30376610 -- © Copyright The Nation Thailand 2019-09-24 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
fruitman Posted September 23, 2019 Share Posted September 23, 2019 The americans also love durian... And the Germans go crazy for durian.. Link to comment Share on other sites More sharing options...
Tim207 Posted September 23, 2019 Share Posted September 23, 2019 Increase yield? As is in chantaburi the branches are supported with bamboo and ropes to keep them from breaking with the weight of hanging fruit. Link to comment Share on other sites More sharing options...
cornishcarlos Posted September 23, 2019 Share Posted September 23, 2019 A lot more rubber plots where I am, being chopped down and Durian planted instead. Seems quite a few are jumping on the bandwagon !! Link to comment Share on other sites More sharing options...
Cadbury Posted September 24, 2019 Share Posted September 24, 2019 Murphy's Law on Thai Durian. "The chances of success or failure of the durian market is directly proportional to the level of greed" Link to comment Share on other sites More sharing options...
Eric Loh Posted September 24, 2019 Share Posted September 24, 2019 Add one more risk. Durian can be grown is just about every tropical country in the world even in China. Just like rubber trees were native in Brazil and brought to SEA. Link to comment Share on other sites More sharing options...
flexomike Posted September 24, 2019 Share Posted September 24, 2019 3 hours ago, cornishcarlos said: A lot more rubber plots where I am, being chopped down and Durian planted instead. Seems quite a few are jumping on the bandwagon !! Same in South East Rayong Link to comment Share on other sites More sharing options...
kevinmartyn Posted September 24, 2019 Share Posted September 24, 2019 Bust for sure. Why should people pay over 30% for the fruits from Thailand Link to comment Share on other sites More sharing options...
wombat Posted September 24, 2019 Share Posted September 24, 2019 like any perishable crop, the only people to make money from it is the middleman. Link to comment Share on other sites More sharing options...
jvs Posted September 24, 2019 Share Posted September 24, 2019 China is planting durian in large amounts,it wont be long before they can export durian to Thailand. Link to comment Share on other sites More sharing options...
Tayaout Posted September 24, 2019 Share Posted September 24, 2019 My guess is if this is profitable then everyone is planting Durian. This means in about 5-10 years farmers will ask for subsidies to survive. Link to comment Share on other sites More sharing options...
mikebell Posted September 24, 2019 Share Posted September 24, 2019 Like much of Thai food (a sure passion-killer) durian is disgusting and expensive locally. Only those with chronic catarrh, fat wallets and no taste buds can eat it. Link to comment Share on other sites More sharing options...
robertson468 Posted September 24, 2019 Share Posted September 24, 2019 30 minutes ago, jvs said: China is planting durian in large amounts,it wont be long before they can export durian to Thailand. They are unable to produce Durian to the quality and taste as Thailand does, which is why the are importing it. However, Thailand needs to take it's blinkers off and develop many more markets, so that they do not have all their Durian in one basket, so to say. Link to comment Share on other sites More sharing options...
hotchilli Posted September 24, 2019 Share Posted September 24, 2019 9 hours ago, webfact said: This upstream-downstream supply has also spawned jobs and investment, but the negative consequence of this is that Chinese vendors can completely control the price. This disadvantage may create a problem for farmers and the future of the fruit in Thailand. Let the Chinese invest in your company at your peril.... they will become the master. Link to comment Share on other sites More sharing options...
DrTuner Posted September 24, 2019 Share Posted September 24, 2019 'negative consequence of this is that Chinese vendors can completely control the price' Chinaman 1 - Somchai 0 Link to comment Share on other sites More sharing options...
Yinn Posted September 24, 2019 Share Posted September 24, 2019 12 hours ago, wombat said: like any perishable crop, the only people to make money from it is the middleman. No. the grower make a lot. Depend on the type also. Many different breed. Link to comment Share on other sites More sharing options...
Yinn Posted September 24, 2019 Share Posted September 24, 2019 12 hours ago, mikebell said: Like much of Thai food (a sure passion-killer) durian is disgusting and expensive locally. Only those with chronic catarrh, fat wallets and no taste buds can eat it. Not true. Link to comment Share on other sites More sharing options...
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