Durian, the once widely popular fruit, seems no longer so favored now. It incites extreme adoration and intense aversion. In Guangxi’s roadside fruit stalls, the price of durians is eye-catching: only 100 yuan for five. At the same time, jackfruit also draws the attention of passersby with its price of 15 yuan each. Guangxi is known far and wide for its low fruit prices, which makes netizens from the north envious. However, for those busy office workers, traveling to Guangxi to enjoy a fruit feast is not realistic; a price drop of durian at their doorstep is the true discount.
Recently, there has been a wave of price reductions for durians in the market. It is reported that in the Xiaoshan agricultural product wholesale market in Hangzhou, the price of durians fluctuates, falling from 35 yuan per jin yesterday to 30 yuan today; wholesale purchases are even lower at 26 yuan per jin. Price levels are often relative. The Thai “Golden Pillow” durians that came to market half a month ago once wholesaled for over 50 yuan per jin, and durians weighing five jin were close to a selling price of 300 yuan – now, the price has plummeted by half.
Despite the rapid price drop, the ultimate selling price of durians is still closely related to the variety. Market stalls labeled “48 yuan/piece Musang King” can be seen, while in reality, they display much smaller durians of unclear quality to attract customers. The main durians sold, however, are priced at 68 yuan each, weighing about 1.5 kilograms.
It is worth noting that the price drop of durian is not a new phenomenon; at this time of the year, at the end of April and early May, the price drop is expected. Taking the data of Beijing’s Xinfadi market as an example, compared to the price at the end of April this year and the previous month, the average wholesale price per jin dropped by 8 yuan.
Nevertheless, the current price of durians is not the lowest in history. A veteran fruit wholesaler recalls that between 2014 and 2015, the wholesale price of durians once fell to 9.9 yuan per jin. He points out that one reason for the difficulty in lowering wholesale prices now is that sales channels are controlled by capital, depriving ordinary wholesalers of their bargaining power. Compared to the low prices of ten years ago, the price of durians today seems just a modest retracement after successive increases.
What hurdles remain for consumers to achieve the long-coveted “durian freedom” today? Let’s delve into it. Clearly, the price of durians is affected by a variety of factors, including the place of origin, variety choices, production volume, and seasonal market availability. When discussing news about the lower prices of durians, we often encounter a special existence—the small “palm-sized durians”.
Let’s take a look, how affordable is the “palm-sized durian” really? While its price is notable, does its quality greatly fall short? According to related reports, the wholesale prices of durians vary from ten to thirty-plus yuan per jin depending on different quality grades. The quality of the most affordable “palm-sized durians” is comparatively low; “Good or bad taste is purely luck”, “A truckload of durians arrives, containing both superior and inferior quality, with no selection, and one’s luck determines the profit, or there might be losses.” High-quality “Golden Pillow” durians, however, cost much more, ranging from 30 to 40 yuan per jin, with top-grade “Golden Pillow” usually selling for over 40 yuan, proving the common truth that “price is directly proportional to quality”.
It’s worth mentioning that the price of durians can even fluctuate within a single day. A wholesaler noted that the purchasing price of durians recently was about 27 to 28 yuan per half kilogram, and the selling price was over 30 yuan. “The more you buy in the morning, the more profit you make; if you have too much stock in the evening, the profit decreases, and you may even suffer losses.” This is because “the moisture content of the durian gradually evaporates, leading to a decrease in weight, especially in the afternoon.”
Even durian growers may find it hard to afford the high prices of the fruit. A survey showed that once tropical fruits like durian are harvested, they quickly enter a state of active respiration and accelerated metabolism, resulting in a very limited shelf life. Usually, durians show signs of splitting and softening within a week. Even the more storage-tolerant Musang King durian, when stored at a temperature of 10°C to ensure the best quality for consumption, can only be kept for 18 days. The delicate nature of this tropical fruit inevitably increases the risk during transportation.
In addition to the high cost of transportation, the cultivation cost of durians is also not insignificant. A grafted durian tree requires at least four to five years to bear fruit. The initial yield is very limited, and after six years of cultivation, each tree can produce 60 to 80 kilograms of fruit, which can reach 180 to 200 kilograms by the twelth year. Normally, durians do not have the ideal quality in their early years of growth, and it takes about ten years for the quality of the durian to stabilize. This is why well-known fruit stores promoting durians claim to “only offer durians from trees older than ten years” as a marketing gimmick.
Of course, the price of durians has been on the rise in recent years, increasing from a few yuan to several tens of yuan to date. Behind this is a very direct factor: the domestic love for durians has reached an unprecedented height! According to customs statistics, China’s fresh durian imports were only 224,400 tons in 2017. By 2019, this number had soared to 604,700 tons, making durians the largest imported fruit in the country. Impressively, by 2022, the total import volume of durians had surged to 825,000 tons. In just five years, the import volume had nearly tripled. The data from 2023 is even more astonishing: the import volume of fresh durians broke through 1.426 million tons, worth an astounding 6.716 billion US dollars.
The significant increase in durian imports: The latest data indicates that durian imports are increasing, with an import volume growth rate reaching 72.87%, and the increase in the import value is even more impressive at 65.56%. Where do these durians come from? Currently, China imports fresh durians from three countries: Thailand, Vietnam, and the Philippines.
Thailand durians still take the lead: According to the data released by the Thai agricultural department in Guangzhou in 2023, Thailand’s export volume of fresh durians continues to grow, exceeding 900,000 tons and accounting for 65% of the total import volume. Vietnam and the Philippines account for approximately 34% and 0.26% respectively, showing that most of the durians on the domestic market originate from Thailand.
Price Increase of Thai Durians: The strong demand for durians within China has driven up local prices of durians in Thailand. For instance, in 2003, the average selling price of Thai durians was about 3 yuan per kilogram, which increased to 13 yuan per kilogram by 2016. Moving further to 2021, the average purchase price of durians in Chanthaburi Province, Thailand, soared to over 28 yuan per kilogram. The price is almost ten times that of 2003, with a rapid growth rate that made local residents exclaim, “Those who grow durians can’t afford to eat them.”
Vietnamese Durians Gaining Prominence: While Thai durians once dominated the market, Vietnamese durians are now gradually becoming prominent and emerging as strong competitors to Thai durians. Reports indicate that in the first quarter of 2023, fresh durians imported through the China-Vietnam Friendship Pass totaled 48,000 tons, valued at 1.85 billion yuan. The amount of durians imported from Vietnam was 35,000 tons, a 48.1% increase year-on-year, causing Vietnamese durian imports at the pass to surpass those of Thailand.
Improved Transportation Reduces Costs: The 2023 opening of the China-Laos railway has had a positive impact on the entry of Thai durians into the Chinese market. According to Thai durian exporters, the China-Laos railway can significantly reduce transit time. Transit from Thailand to Kunming, China, previously required about 7 days by sea and 5 days by land, but only 3 days by the China-Laos railway. The reduction in transit time directly leads to lower transportation costs.
Rise of Domestic Durians: Parallel to the growth in durian imports is the rise of domestically produced durians. China has undergone numerous attempts and explorations in durian cultivation from the 1950s to the present, achieving significant success. The trial planting of durians in Dexia Village, Ledong Li Autonomous County, Hainan Province, has been successful and the fruit is now hitting the market in small batches. The expected “domestic durians” that will hit the market in May will also be the first output from Ledong.
The cultivation area of Hainan durians continues to expand, now reaching nearly 40,000 mu, and this year’s yield is expected to achieve two to three times growth compared to last year, with an anticipated output of around 200 tons. With the scaling up of domestic durian cultivation, it is hoped to become an affordable “fruit for the people,” much like the “Sunshine Rose” of the past, easily consumable by the masses. However, fans are advised to be cautious about consuming them in office environments.
It should be noted that all information provided is for reference only, and decisions should be made based on the investor’s own independent judgment. Any views, analyses, and forecasts contained in this article do not constitute investment advice, nor do they bear any responsibility for any form of loss that may arise from using this content. Investment decisions should be made cautiously, as past performance does not guarantee future results will be the same.
