Early-Season Durian Prices Soar Amidst Market Competition, Boosting Exports to China
April, 11 2024
A market survey of early-season durian prices in Thailand’s eastern provinces found that durian prices remain high compared to the same period in 2023. For instance, in Trat province, from February to early March, Chanee durian was priced at THB 320-350 per kg, while Monthong durian ranged between THB 270-280 per kg.
By mid-March, early batches of durian from Chanthaburi and Rayong started entering the market, but due to limited supply, prices remained high. Additionally, rising demand ahead of China’s Qingming Festival (Tomb-Sweeping Day) further pushed up Monthong durian prices, as it remains the most popular variety in the Chinese market.
Fluctuations in Early-Season Prices
At Nern Sung Market in Chanthaburi, current durian prices are:
- Grade ABC: THB 260-270 per kg
- Grade AB: THB 275-290 per kg
However, after authorities seized over 4 tons of unripe durians at a Chanthaburi packing house (Lhong) on March 27, 2024, many traders paused their purchases, causing prices to drop by THB 5-10 per kg within 2-3 days.
By April 2, 2024, prices dropped further:
- Grade ABC: THB 230 per kg
- Grade AB: THB 230-240 per kg
In response, many farmers delayed harvesting in anticipation of a price rebound. Prices are expected to decline further in mid-April and continue dropping in May when supply peaks. However, they are likely to remain higher than last year’s average of THB 130 per kg, settling around THB 140 per kg.
Exporters Delay Purchases Amid Market Uncertainty
Mr. Kamon Rueangkhajorn, Managing Director of Alice Group, stated that early-season durian exports (March-April) to China saw high demand due to low supply, leading to a price surge. However, after the unripe durian seizure in Chanthaburi, buyers temporarily halted purchases, causing prices to drop by THB 5-10 per kg.
"Although the detection of unripe durians contributed to the price drop, the key issue is Chinese demand. High prices have already impacted sales in China, where economic conditions remain weak. Additionally, Vietnamese durian exports to China have surged, increasing competition for Thai durians," he said.
Mr. Kamon expects durian prices to remain high until April 5, 2024, as exporters rush to ship before China’s Qingming Festival (April 10). After this period, prices are likely to decrease, especially in mid-May when supply peaks.
Competition from Vietnam & Market Challenges
Mr. Phanuwat Maikaew, President of the Thai Durian Exporters and Mangosteen Association, highlighted three main factors behind the price drop:
- Overpriced early-season purchases: Traders overpaid for early-season durians, with Chanee durian reaching THB 300-320 per kg, leading to significant losses in China’s slow-moving market.
- Inexperienced Chinese traders: New Chinese buyers misjudged durian grading, leading to purchases at inflated prices.
- Increased Vietnamese competition: Vietnam exports 40-50 containers of durians daily, offering lower prices than Thai durians.
As a result, Monthong durian prices have dropped:
- Grade AB: THB 170-180 per kg
- Farm gate prices: THB 230-235 per kg
To avoid further losses, many exporters have halted or slowed down purchases, with only 20-30 out of 1,200 registered packhouses currently operating.
Price Stability Expected for Late-Season Durians
Mr. Cholthit Numnoo, President of the Eastern Thai Durian Farmers Federation, reassured that durian prices should remain stable throughout the season, provided there is strict enforcement against unripe durians entering the Chinese market.
"The period between March 31 - April 2 saw prices drop by THB 30-40 per kg, but if we prevent unripe durians from entering the market, prices should remain steady," he added.
Additionally, reports suggest that unripe durians from the eastern provinces are being secretly transported to southern Thailand for repackaging before export. Authorities have been alerted to monitor the situation to maintain Thailand’s reputation and pricing stability in the Chinese market.