HONG KONG: Shipments of fresh durians from Thailand to China - the world's top consumer of the pungent fruits - rebounded in the second quarter after a drop earlier this year, a change in fortunes attributed to a seasonal harvest spike and a lasting reputation for quality.
Durian imports from Thailand were valued at nearly US$2.67 billion (91 billion baht), according to Chinese customs data, representing a 75% share of all inbound shipments of the fruit - a marked improvement from the 42.5% registered in the first quarter of 2024, and a quarter-on-quarter increase of US$2.5 billion. The country's share of China's durian imports for the whole of 2023, meanwhile, was 68%.
Thailand's chief competitor, Vietnam, claimed all but a trickle of the remaining shipments over the second quarter. Vietnamese durians sometimes sell for less than their Thai peers in China as shipping costs are defrayed by the use of a land border. However, Chinese authorities had cut off 33 Vietnamese durian export sources in June over quality concerns. Vietnam's quick growth in exports of fresh durian since 2022 - before which Thailand had a functional monopoly - may have prompted growers to pursue shipment volume at the expense of quality, analysts said.
Thailand has long had a "first mover advantage" among Chinese consumers, said Liang Yan, an economist at Willamette University in the US state of Oregon. The second quarter of each year marks the major harvest season for Thai durians, observers said, while consistency of flavour and brand recognition grant additional appeal.
"Thailand's increased share in the second quarter can be mainly attributed to the seasonal peak of Thai durian production, their strong and established trade networks, and consumer preference for Thai durians during this time," said Lim Chin Khee, an adviser with the Durian Academy, an institution that trains Malaysian growers.
China is the world's biggest buyer of durians by a long shot, importing 1.4 million tonnes in 2023. Dubbed "king of fruits" by many consumers, it is treated as a delicacy and has even been given as a gift to celebrate special occasions such as weddings. The country's own efforts to grow its own crop on the tropical island province of Hainan are still in their early stages, with production scale and development level presently unable to match the more mature industries in Southeast Asia.
Though Thailand lost momentum in May due to intense heat and drought - which caused durians to split open on trees and shortened the harvest season - local media reported the country's minister of agriculture and co-operatives eventually sent emergency aid to growers.
Trade data for July made available on Tuesday valued Thai imports of fresh durians at US$363 million and Vietnamese shipments at US$270 million. In the four-month period ending with July, Thailand had shipped 609 million kilogrammes of durians compared to Vietnam's 296 million. Thai durians remain popular in China largely because the flavour seldom wavers, though the fruits lack the variety of taste that some might prefer, said Song Seng Wun, an economic adviser at the Singapore-based financial services firm CGS.
After a prolonged lobbying effort, Malaysia won approval in June to ship fresh durians to China - a victory that came too late to compete in the previous quarter, Lim said, adding Malaysia's durians are "not yet in full supply". Malaysian durians are likely to cost more than Thai fruits - which can already command up to 200 yuan (960 baht) per specimen at Chinese markets and grocery stores - but stand out for their wider range of flavours, Song said.
"Malaysia won't be able to meet so much demand by volume," he said. "Thailand will be the major supplier for now, because of the high volume in terms of shipments."