Page 50 - FoodFocusThailand No.156 March 2019

SEE TH
SEE THROUGH MARKETROUGH MARKET

Durian, “The King of Fruit”, has become the world’s
leading fruit, but the new challenge for Thai breeds is
coming as competition intensifies.

DURIAN:

VANGUARD FOR THAILAND

TO BECOME FRUIT SUPERPOWER

The price of Thai durian signify obviously that the fruit stepped innovation. Distribution channel should also be developed to be more
up to become the most expensive fruit in the past years, following systematic. There should be a plan to penetrate new markets such as
the increasing demands both domestically and internationally. Australia, Canada, and South Korea. Meanwhile, entrepreneurs’
Meanwhile, at orchards, durian price reached its peak in history after capacity can be developed (Source: Walaipan Chiang-Nguen), for
many orders from traders fluxed in from home and abroad via online example, through Pracharat Shop.
and offline channels. Monthong durian, particularly, still received
high popularity, causing the price at the orchard to increase, too. Malaysia and Vietnam are fierce competitors for many years.
Durian price is likely to increase; however, it also raises the question 2Recently, the Vietnamese government promotes the production of
whether this bright future will be sustainable? Monthong durian to compete with its Thai’s counterpart in terms of
Yielding: In 2017, Thailand has contributed 611,186 Rai of land deliciousness. Meanwhile, Malaysia has Musang King, and aims to
to durian plantation (Source: Office of Agricultural Economics) and become the biggest durian exporter in the world soon. However, even
produced 635,031 tonnes of durian. The country’s durian export though Thailand is the only country accepted by China for its fruit
worth USD 652.89 million, and around 89% of the durian grown are standard, and is the sole country permitted to export fresh durian into
Monthong to serve the Chinese market. In 2018, the Office of the country. This does not guarantee that no other country will not be
Agricultural Economics reported that Thailand will produce 726,809
tonnes of durian, with yield per Rai increases 14.45% from the Durian production increases both in Thailand and its neighbouring
previous year. Prominent durian production provinces are 3countries like Malaysia, and Vietnam. Meanwhile, 80% of the global
Chanthaburi (165,046 Rai), Chumphon (138,801 Rai), Nakhon Si durian market is in China. This means that there is only one major
Thammarat (60,194 Rai), Rayong (52,706 Rai), and Surat Thani buyers, but more and more sellers. The competition is likely to get
(46,113 Rai). Statistic also revealed that durian production expands more competitive, therefore, new markets should be considered to
in every region, as the fruit is a popular choice for domestic and ease the risks from dependency on China and over supply. Another
foreign consumers with prospect of continuous demand despite high option is to target overseas Chinese in various countries such as
price. Indonesia (2.8 million), the USA (4.8 million), Australia, and Malaysia.
As of now, Thailand is the biggest manufacturer and biggest These overseas Chinese tend to follow consumption pattern from the
exporter of durian, with beetling markets in China, Vietnam, and mainland (as the reference group), and, interestingly, in these markets
Hong Kong. Meanwhile, exports to Taiwan, Malaysia, South Korea, (except Indonesia), the expansion of Durian import from Thailand is
Japan, Australia, and Canada, remain small yet expanding quickly sharply increasing.
and have high potential to develop. However, competition arises
from Malaysia, Indonesia, and Vietnam. Nonetheless, Vietnam still Thai durian needs to prepare for the intensifying competition,
imports a lot of durian from Thailand, and only 30% of this is for 4therefore, products made of durian should be promoted as well for
domestic consumption within Vietnam while the rest are exported value-added purpose. For example, durian contains high fat and it can
to China through land border. increase HDL cholesterol to our body. As a result, it can be turned into
medicine. At the same time, farmers should look for other breeds of
Situation Analysis durian with less competitors (Chanee, Kra Dum, Puangmanee,
Following the Cabinet’s approval of the Strategic Plan and Kanyao) apart from Monthong.
1for Thai Fruit Development B.E.2558-2562
(2015-2019), the Thai government Manufacturers should be encouraged to use
plans to push Thailand to become the 5online merchant service like Thaitrade.com or
super power in tropical fruits. There is blockchain to create new marketing channels, as
an urgent need to develop durian’s well as to reduce dependency on Alibaba.
production, creating premium grade brand Pracharat shop is also a good channel to distribute
to add value and marketing secondary grade the products to the regional markets domestically,
durian for domestic consumption, as well as the neighbouring countries and South
processing, or even new products China, without the need for the middleman.

48 FOOD FOCUS THAILAND MAR 2019
48 FOOD FOCUS THAILAND
MAR 2019