Durian export to China – Early season durian prices surge, defying traders’ game, pushing exports to China

Exporting durian to China

The report on the survey results of early-season durian prices in the eastern region found that most of the durian products that are currently available are priced at a high level compared to the same period in 2023, such as in Trat Province, from February to early March, the Kradum durian variety opened at a price of approximately 320-350 baht per kilogram, and Monthong at 270-280 baht.

Next, in mid-March, the first batch of durian from Chanthaburi and Rayong began to enter the market, and there was still not much quantity. Although the price had slightly decreased, it was still high, partly because the packing plants, or longans, were competing to buy durian to open the market. And then, in late March – early April, nearing the Qing Ming festival, due to higher demand, especially Monthong, which is popular in the market.

Today’s durian prices at Noen Sung Market in Chanthaburi: Grade ABC durian, price 260-270 baht per kilogram, AB 275-290 baht per kilogram. However, after news broke of the seizure of over 4 tons of unripe durian at a longan in Chanthaburi Province on March 27, 2024, the stalls stopped buying and the price dropped 5-10 baht within 2-3 days. Grade ABC price 250-265 baht, AB 270-280 baht, and the price has dropped quite a bit since March 31 onwards.

Prices have continued to fall from ABC grade durian, price 230-250 baht, AB 260-265 baht. On April 1, ABC grade price 220-245 baht, AB 240-250 baht. On April 2, ABC grade price 230 baht, AB 230-240 baht, causing orchard owners to delay cutting durian to wait for the price to increase. It is expected that after April 10-15, 2024, the price will start to drop again and will drop a lot in May because there is a large amount of durian coming into the market and the price is expected to remain high at an average of around 130-140 baht per kilogram.

Long slowed down buying and waited to see the market.

Mr. Kamol Ruangkhajorn, Executive Manager of Elis Group, revealed that the price of the first batch of Eastern durians, which were released at the end of March – April 5, to be sent for the Qingming Festival, has a high demand in the Chinese market. In addition, the amount of durians is still low and the warehouses are competing to buy them, causing the price of durians to increase. For example, the price of Monthong AB has increased to 270 baht. However, when there was a problem with unripe durians being found at the warehouse in Na Yai Am District (Chanthaburi), the price of durians decreased by 5-10 baht per kilogram and the warehouses stopped buying to wait and see the situation.

“The discovery of unripe durians has caused the price of durians to drop, but it is not a significant issue because previously unripe durians had slipped to the Chinese market, causing poor sales. For the first batch of durians released from late March to April 5, which had a small quantity, traders rushed to buy or sold them all, causing the price to be too high. The price of AB is 260-280 baht per kilogram. Meanwhile, the longan had to rush to cut them, so there were unripe durians cut along with them. When the longan was losing money, they had to adjust the purchase price down, or close the stalls, stop or delay purchasing, in order to observe the situation and wait for more durians to enter the market.”

Mr. Kamol said that the high price of durian since the end of March should remain until April 5, when the longan will have to close the export containers in time for the Qingming Festival on April 10. After that, the price should decrease. When the durian comes out in mid-May, the price should drop to its lowest, but it should not be lower than last year’s price, or around 130 baht per kilogram. This year, it might be around 140 baht, but it depends on the amount of durian in the market.

While Mr. Koson Punyapan, owner of the “Koson (Tu)” warehouse in Khao Saming District, Trat Province, expressed his opinion that the discovery of 4 tons of unripe durians should not affect the adjustment of the durian purchase price. The price adjustment is likely due to 2 reasons: the durian purchase price is set too high, with Monthong grade AB as high as 280 baht when it reaches its destination, because China’s economy is still not doing well, so expensive durians cannot be sold. In addition, there are durians from Vietnam that are exported 40-50 containers per day and are cheaper, and more durians are starting to enter the market.

Early durian season prices skyrocket

Mr. Phanuwat Maikaew, President of the China Durian and Mangosteen Exporters Association, revealed that from March 31 to April 2, the price of durian has dropped by 30-40 baht per kilogram. Monthong AB has dropped from 270-290 baht to
230-235 baht

The main causes are:

1. Traders who bought the first generation of durians at the beginning of the durian season were very expensive, especially buttons, at 300-320 baht per kilogram, causing heavy losses because the Chinese destination market’s economy was still not good, purchasing power was low, and durians were too expensive to sell.

2. New Chinese traders who come to buy durian do not know how to sort and compete to buy from orchard owners at very high prices and in bulk grade ABC, resulting in unripe durians being sold.

3. The abundance of button durians and the price drop has caused the price of Monthong to decrease as well. There are also Vietnamese durians entering the market.

Now, Monthong is starting to come out more. The price of the button has dropped. Grade AB has gone from 220-225 baht to 170-180 baht. Monthong’s price at the longan market has dropped to 230-235 baht, but the longan market can’t handle the price. During the hot and dry season, farmers give too much water. When transporting to the destination in China, the weight of the durian will be lost by almost 500 kilograms per container. If you send 2 containers, the total weight will be lost.
1 ton, 150,000 baht already spent, had to stop or delay buying, and now there are many longans that are not open to buy to wait and see the situation. Now only 20-30 longans are open out of the total longans that have increased this year, 1,200 longans.

Durian, good price until the end of the season

Mr. Chonlatee Numnoo, President of the Eastern Thai Durian Growers Association, said on this matter that this period is called the “10-15 dangerous days” before the announcement of the simultaneous harvest day for 3 provinces on April 15, 2023. This period is the beginning of the season. Every year, the demand for durian exports to China and the purchase price are very high, causing young durians to be sent out. Therefore, we must help control and take care of it. If no young durians are released to the foreign market, the price will definitely not fall. Throughout the season, the price may even increase if we look at the amount of demand from buyers.

“In the past, we have received information from the durian grower network that young durians in the eastern region have been cut and transported to be packed in warehouses in the southern region to avoid inspection by the Hawk’s Claw team of the Agricultural Research and Development Office, Region 6, Chanthaburi Province (ARD 6). We have coordinated with the head of the plant inspection checkpoint in the southern region to help investigate this matter.”
Mr. Chonlatee said

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Source of information: Prachachat Business

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