With Vietnamese durians allowed to export to China and Cambodian frozen durians exported to China, the Thai durian industry has recently been "trembling", what is the reason for this situation?
On July 11, 2022, Vietnamese durian was allowed to export to China. Cambodia's first attempt to export 120 tons of frozen durian to China in 2022 has been completed, and the first 50 tons have been completed, and the remaining 70 tons will be exported successively. Durian traders in Chanthaburi, Thailand, are worried about the sharp decline in the market share of Thai durian in China, so they suggest that the durian industry come up with a plan to "resist" Vietnam, Cambodia, Malaysia and other countries to steal the market share of Thai durian in China.
Due to the lower production cost of durian in Vietnam, labor, fertilizers, pesticides are relatively cheap, and the transportation distance to China is shorter, taking only 36 hours. Durian, on the other hand, takes 3-4 days to transport from Thailand. There is no doubt that Vietnamese durian can meet the huge demand of the current Chinese market in terms of quality and speed of reaching the Chinese market.
Vietnamese durian's competitive advantage
SangChai, president of the Thai Fruit Trade and Exporters Association, said in an interview: The Vietnamese durian variety is mainly RI6, the flesh is similar to the Tomani variety, and the fruit shape resembles the dried durian.
Panouan, president of the Thai Durian Export Association, said: "Vietnamese durian usually enters the Chinese market through border trade in Guangxi, but because production costs, transportation and labor costs are cheaper than Thailand, and the price is about 50% lower than that of Thailand. If Vietnam exports durian to China, it will also carry out production control like Thailand, resulting in more severe market competition for durian in Thailand, and the price of durian will definitely decline.
Concerns of the durian industry in Thailand
Thai media said: Although China has not yet published the list of Vietnamese durians allowed to be imported and related import conditions on the website of the General Administration of Customs, this procedure must first be carried out after signing the documents under normal circumstances.
For the Thai durian industry, the current situation is still relatively optimistic. Because the durian season in eastern Thailand is nearing its end, it is expected that there will be little impact on the durian season in 2022, but it is likely to affect the durian in southern Thailand.
The first durians in Chumphon Province, Thailand, will be available by the end of July 2022, and the current price is acceptable to industry members. Others include Surat Thani, Nakhon and Yala Province, which will end at the end of August; Vietnamese durian exports about 100 cabinets and more than 1,000 tons a day, and it is said that Chinese buyers have traveled to Vietnam to buy durian.
Sangchai, president of the Thai Fruit Trade and Exporters Association, said: "The Thai side must maintain the good quality of durian products, especially the ripeness of the pulp and excellent taste, and only high quality can gain the trust of Chinese consumers."