The Malaysian Insight

CONSUMERS will have to pay more for durians as production of the fruit fell by 60% this year, producers said.

They blamed the high cost of fertilisers due to the war in Ukraine, while the closure of Shanghai port has impacted exports severely.

Cultivation of the fruit – which is typically harvested in May – also suffered from heavy rain, which led to trees not flowering and producing fruit, they added.

They said there was a 60-80% reduction in the Musang King and Black Thorn varieties in Penang, Johor and Pahang.

Exports of frozen durians to China is also expected to fall by 60% this year, they said.

Heng Mee Oo, owner of Orcheeking Enterprise, said the bad weather had affected the durian trees.

An orchard, which ordinarily produces 10 tonnes a season, may only harvest two tonnes this year, Heng said, adding this will push prices up.

Heng said Black Thorn currently costs RM100/kg due to the lack of volume. Usually, this variety costs between RM75 and RM80/kg, he said.

“We are mentally prepared to face bad weather every year, but this year things got worse,” Heng told The Malaysian Insight.

“Not only is the fruit not ‘beautiful’, there is also a problem with the supply chain. We are looking at an 80% reduction in production.”

Prices have been further pushed up due to high operating costs, labour shortage, soaring transport costs, fuel and fertiliser prices, Heng said.

“Previously, fertiliser used to cost RM3,000 a tonne. Now it has doubled to RM6,000 a tonne. Our costs have gone up fivefold,” he said.

In terms of export to China, Heng said the closure of Shanghai port meant that ships could not dock to unload goods, leading to delays.

He is now considering unloading at other ports such as Guangzhou, Dalian or Beijing.

Black Thorn is highly sought after in China and accounts for 20-30% of Heng’s exports. Black Thorn is also more expensive than Musang King, he said.

“Mainland Chinese customers are receptive to new varieties and they look forward to Black Thorn.”

A box of Musang King currently costs RM800-RM900, while Black Thorn costs RM1,200.

Since 2016, Malaysia’s durian export has grown to 107%, which translates to RM74.8 million.

In 2016, Malaysia exported durians worth RM69.9 million, RM59 million in 2017, RM125 million in 2018, RM127 million in 2019 and RM145 million in 2020.

Frozen durian exports to fall by 50%

Top Fruits managing director Tan Sue Sian said the export of frozen durians is expected to be 50% lower than last year.

While demand from China is still high, production has decreased, he said.

Tan said Musang King will cost 15% more this season than it did in 2021.

“The price of durians this season will be very expensive. Musang King will not be less than RM60/kg.

“I believe consumers will be more prudent, but durian lovers will still buy them despite high prices.”

The weather has seen farms in Pahang and Johor reduce production by 60%, while in Penang it is down by 20%.

Fertilisers, which have doubled in price, have also had a knock-on effect on raising costs 20-30%.

To balance the overheads, Tan said there is a need to move away from old practices, and reduce dependence on labour and fertilisers.

“We need to encourage automation in planting to reduce our dependence on manpower and reduce the use of fertilisers at the same time.

“Our company is slowly starting to automate and move towards smart agriculture.”

Automation will also help small farmers reduce costs, unnecessary waste of fertilisers, improve the quality of durian by using date and promote Malaysian durians to a wider export market, he said.

Meanwhile, with the closure of Shanghai port, Tan said his distribution and transport team is looking for alternatives.

“We hope that production in the second half of the year will improve, depending on the weather in June.”

Closure of Shanghai port affecting logistics

Eric Chan, the managing director of Dulai Fruits Enterprise said only Johor produced a good harvest this year.

“A lot of fruit fell before it was ripe,” he said.

Chan said the lockdown in China due to its zero Covid strategy has been challenging because there is a lot of uncertainty, especially when it comes to logistics.

He expects the company’s sales to decrease by 30% this year due to the pot closure.

“Transport costs increased significantly, while the main fruit distribution centre and the largest wholesale fruit market in Shanghai are closed.

“We were told by the locals that fresh fruits were left to rot during the lockdown. The distribution chain is disrupted. Luckily for us, our durian is frozen.

“There are no losses for us, but it has affected sales,” Chan said.

Producers also have to put up with the rising price of fuel, which is eating into their profit margin.

“Mainland customers prefer whole frozen durian, but the demand for Black Thorn pulp continues to increase because customers can look at the quality of the fruit.”

Chan said he is hoping that the government will provide producers with a soft loan to encourage automation and increase productivity.

He also hopes that the government can set a standard for the quality of the fruits to protect the industry. – May 6, 2022.