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China, the world’s largest durian market, has been trying to grow durian over many years. However, after years of experimenting with cultivation, Chinese farmers have not gained success.
The durian growing areas in China has been expanding over the last few years and Chinese farmers have harvested the first crops, but the quality was lower than expected.
China spends several billion of dollars to import durian. In 2023, it imported 1.4 million tons of durian, worth $6.5 billion, a 70 percent increase over the year before, mostly from Vietnam and Thailand.
Vietnam’s durian has been exported to China for many years, but mostly across border gates (unofficial quota), rather than through official channels. Only in late 2022 could Vietnam export durian to China under full tax mode (official quota).
After a protocol was signed between Vietnam and China, Vietnam’s durian export turnover reached new highs, bringing big money to both Chinese farmers and exporters.
The General Department of Customs (GDC) reported that Vietnam earned $2.24 billion from durian exports in 2023, and 96.8 percent of turnover came from China.
With high export turnover, durian has become the next multi-billion dollar fruit in Vietnam, after dragon fruit.
In the first half of 2024, Vietnam exported $1.32 billion worth of durian, up 45 percent over the same period last year. The country expects to earn $2 billion more in the second half when Central Highlands farmers harvest durian.
In the last two years, durian has become a popular keyword on forums. Experts have warned about the rapid development of durian growing areas, and more and more "durian billionaires" have appeared thanks to big exports to China.
Mekong Delta farmers said off-season durian can sell at high prices which gives farmers a profit of VND1-1.2 billion per hectare. In peak season, durian prices are between VND60,000 and VND100,000 per kilogram, which brings a profit of VND700 million-1 billion per hectare.
Doan Nguyen Duc, president of Hoang Anh Gia Lai JSC, said average durian production cost is VND20,000 per kilogram, while the figure is just VND13,000-15,000 per kilogram, so the profit is very high.
Ngo Thi Minh Trinh, deputy chair of Krong Pak district in Dak Lak, a durian metropolis, said at the 2024 Durian Festival held recently that in 2022-2023 alone the district had 1,000 more cars which were bought with money from durian sales.
Prior to that, the Dak Lak Department of Agriculture and Rural Development reported that in 2023, turnover from durian reached a record high of VND15 trillion.
Meanwhile, farmers in Di Linh district in Lam Dong province reported that they had earned VND500 billion from durian sales. Each durian farming household in the locality could earn VND1.2-1.5 billion, while in Hoa Nam commune, 10 households had revenue of VND4-10 billion from durian sales.
In Khanh Son, a poor mountainous district in Khanh Hoa province, farmers earned VND1 trillion last year, a record high, from durian.
Frozen durian
With the current import growth rate, the Chinese durian market is predicted to have value of $20 billion soon, which means that Vietnam still has great opportunities to boost durian exports to the vast market.
Vietnamese and Chinese agencies have completed technical negotiations and are expected to sign a protocol on the export and import of frozen durian products.
Sakda Sinives, a Thai agriculture expert, said, at the second Asian durian conference, frozen durian is believed to be the major product to be bought by China in the future.
As China imports millions of tons of durian each year, it is facing difficulties because of the organic waste generated from durian consumption. The waste volume from durian has caused environmental pollution.
With 50,000 containers of durian imports from Thailand last year, China had to spend $325-350 million to transport durian peels. So, frozen durian is expected to be a choice in the upcoming years thanks to its convenience.
If the protocol is signed, Vietnam will earn hundreds of million of dollars more each year.
Tam An