Brian Jeffrey
In a surprising turn of events, durian exports from Vietnam generated around 16.85 trillion VND (approximately $674 million) in just one month. This surge is particularly noteworthy as the “king of fruits” is currently in its off-season, allowing Vietnam to be the exclusive global provider, which has driven prices to all-time highs.
Data from the General Department of Customs indicates that durian is Vietnam’s leading fruit export, significantly impacting the agricultural export industry. Over the first three quarters of 2024, the export of durians has reached an impressive $2.82 billion, marking a 63.3% increase year-on-year and representing over half of the nation’s total fruit and vegetable exports.
In September alone, the export figures for durian nearly hit $674 million, reflecting a 24.9% rise compared to August.
China continues to be the primary market for Vietnamese durians, consuming over 90% of its export value.
Dang Phuc Nguyen, the General Secretary of the Vietnam Fruit and Vegetable Association, projected that by the end of October 2024, durian exports could exceed $3 billion. Though the main harvesting season in the Central Highlands is mostly done, the Mekong Delta is starting its off-season collection.
This period of off-season harvesting enhances Vietnam’s role as the only supplier of fresh durians worldwide, especially in the Chinese market. The decrease in the yield of off-season durians from the Mekong Delta has led to a significant increase in prices, according to the association’s representatives.
As reported in October, approximately 1.1 million tons of durians had been harvested, showing a 20% year-on-year increase. However, the harvest for October was only 154,200 tons, indicating a 15% decrease from September.
Recently, escalating prices have been observed due to a mismatch in supply and growing demand. Farmer Nguyen Nhat from Dong Nai Province noted that high-quality Thai durians in Southeast Vietnam have reached around 200,000 VND ($8) per kilogram, while Ri6 durians are priced at 150,000 VND ($6) per kilogram.
Huynh Tan Loc, the Director of Ngũ Hiep Durian Cooperative in Tien Giang Province, expressed concerns over the elevated prices, stating, “Prices are so high that our cooperative is reluctant to buy for export. Last year, we were purchasing tons daily, but now it’s beyond reach.” He mentioned that grade-A Thai durians are currently priced at 190,000-200,000 VND/kg, whereas grade-B is about 20,000 VND lower, and grade-A Ri6 durians are available for 150,000 VND/kg at warehouses.
Adverse weather conditions this year have led to a decline in the fruit’s yield, particularly during the off-season, where an abundance of blooming flowers did not translate to fruit growth. Traders are scouring farms to find durians, further amplifying prices.
Vietnam’s off-season durian harvesting takes place from October to February, overlapping with a time when other countries have concluded their harvests. This timeline provides Vietnam with a near-monopoly status in the fresh durian market. Vietnamese exporters are bound by contracts to deliver to their Chinese partners, regardless of the increasing costs, further contributing to the price hike.
Loc also anticipates additional price rises as the Lunar New Year approaches, during which durians are considered prestigious gifts in China. “Durian prices are climbing as swiftly as gold,” he joked. Consequently, his cooperative prefers to engage in short-term deals rather than risking larger contracts that could lead to losses if prices drop.
Nguyen estimated that total durian exports could reach $3.5 billion this year.
Meanwhile, the development of frozen durian exports to China is underway, with businesses striving to secure plantation codes for exporting. The initial frozen shipments are projected for late 2024 or early 2025.
However, due to high fresh durian prices, many companies are inclined to export whole fruits rather than frozen ones. The freezing of durian flesh becomes financially viable only when there’s a plentiful supply available at lower prices, which makes it more competitive in the Chinese market.
