Raub, Malaysia – A glut of durian, once hailed as Malaysia’s next economic boom, is now threatening the livelihoods of farmers across the country. A shift in Chinese consumer preference towards fresh fruit, coupled with increased regional competition and past overplanting, has led to a dramatic price drop, leaving growers with mounting stockpiles and dwindling profits.
Liew Jia Soon, a durian farmer in Raub, north of Kuala Lumpur, embodies this shift. Returning to his family’s plantation in anticipating record earnings, he now faces a starkly different reality. “We farmers have seen a 60% drop in profits during this season,” he said, surveying unsold fruit last month.
While demand from China remains strong – the country imported $7.5 billion worth of durian in , accounting for over 90% of global exports – the method of that demand has changed. Previously, Malaysia primarily exported frozen durian pulp and paste, and later, frozen whole fruit. Now, Chinese consumers overwhelmingly prefer fresh durians, a logistical challenge for Malaysian exporters.
“We need to get the supply chain to cater for this change in exporting fresh durians,” explained Eric Chan, president of the Durian Manufacturer Association. He expressed concern over the limited capacity of flights between Malaysia and China to handle the increased volume of fresh produce. This logistical bottleneck has contributed significantly to the current oversupply.
The situation has been described as a “durian tsunami” by some within the industry. Prices plummeted in December to a ten-year low of MYR10 (US$2.56) per kilogram, a fraction of previous market values. This volatility is exacerbated by the long maturation period of durian trees – five to ten years – requiring farmers to make long-term forecasts in a rapidly changing market.
The current crisis is rooted in decisions made over the past decade. In , growing demand from China spurred farmers to plant more trees, anticipating continued growth in the frozen market. When China approved imports of frozen whole durians in , prices surged, further incentivizing expansion. By , national output had nearly doubled since , reaching 568,000 tons, contributing to the present oversupply.
The economic slowdown in China late last year has also played a role, making buyers more selective and driving down prices, according to Lim Chin Khee, an advisor to the Durian Academy. Increased competition from Thailand, Vietnam, and Indonesia, all expanding their fresh durian exports, has further intensified the pressure on Malaysian growers.
Ken Tan, of Durianhill Plantation in Penang, reported a 40% decline in shipments to China this season compared to the previous year. This drop in exports has, however, resulted in lower prices for Malaysian consumers, with some farmers opting to sell directly from their orchards to cut out intermediaries.
The Federal Agricultural Marketing Authority (FAMA) attributes the glut to export-grade clones failing to meet export standards, rather than a decline in overall demand. Aminuddin Zulkipli, FAMA’s chairman, stated that local demand for durian remains robust, as reported by Sin Chew Daily. The agency noted that the price pressure is primarily affecting lower-quality durians, while premium varieties have been less impacted.
The Malaysian government has intervened by purchasing some of the surplus crop to support farmers. Agriculture Minister Mohamad Sabu described the oversupply as “temporary,” anticipating a clearer picture during the next peak season in June. “I still believe that durians will be the economic boom for Malaysia,” he told The New York Times.
This optimism is supported by China’s continued appetite for the fruit. However, the complexity of premium Malaysian varieties, such as the Musang King, which are distinguished by their unique fragrance and flavor profiles, is also a key factor. “Even if only 2% of Chinese people want to buy durians, that’s more than enough business,” says Chee Seng Wong, factory manager of Fresco Green, a durian exporter in Raub.
Chinese importers are increasingly discerning, seeking nuanced flavors beyond simple sweetness. “Maybe in the beginning we only liked durians that were sweet. But now we look for things like fragrance, richness and nuanced flavors,” says Xu Xin, a Chinese durian importer.
Official projections indicate that Malaysia’s durian output will continue to increase, reaching 590,000 tons this year. Exporters are exploring alternative markets, including Taiwan and Peru. However, concerns remain about the long-term sustainability of the industry.
Stephen Chow, of Chow Kai Pheng Enterprise, warned that production is likely to exceed demand for the next three to five years as newly planted trees begin to bear fruit. “What Malaysia is experiencing now,” he said, “is just a preview.”
