Thailand heatwave gives Vietnam edge in durian exports to China
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Thai industry insiders say the ongoing heatwave in Thailand might reduce durian production, allowing Vietnam to increase its supply to China.
A heatwave in April and May reduced Thailand’s harvest, which normally commands higher prices than its Vietnamese peers.
In April the country recorded a temperature of 44.2 degrees Celsius, compared to the all-time record of 44.6 degrees last year. So far this year Thailand has recorded 61 people dying over heatstroke, higher than the total number in 2023.
High heat causes the skin to crack or the fibers to dry out in some durians, Sam Sin, development director at S&F Produce Group, a Thai firm that exports durian to China said.
In China’s Zhejiang province, fruit importer Huang Dapeng mentioned in a WeChat forum that some durians were becoming “overheated,” leading to their sale at prices below the market rate.
Farmers reported that the heat is causing durians to ripen more quickly, preventing them from reaching their full size and reducing their market value.
According to China’s General Administration of Customs, in April, China’s import price for Thai durians was US$5.80 per kilogram, marginally higher than the overall average of US$5.38 per kilogram. In contrast, Vietnamese durians were priced at US$4.22 per kilogram.
Thai durians exported to China in the first four months of 2024 had lost 49% of their value over the same period last year.
Another concern for Thai durian growers is drought, which could reduce the yields.
The serve weather condition may reduce Thailand’s durian production this year by 42%, or around 540,000 tons, the Nation quoted Aat Pisanwanich, an expert on international economics and adviser to Intelligent Research Consultancy as saying.
“In April the country recorded a temperature of 44.2 degrees Celsius, compared to the all-time record of 44.6 degrees last year.”
Vietnam gains on Thailand
Drought and heatwaves increase durian production costs in Thailand, as farmers face additional expenses to transport water to their farms to sustain their durian trees.
Conversely, Vietnamese exporters, who gained permission to sell fresh durians in China about three years ago, benefit from cost savings by shipping the fruit across a single land border.
This logistical advantage results in lower prices for Vietnamese durians. In April, China’s import price for Vietnamese durians was 27% lower than that of Thai durians, at $4.22 per kilogram, according to data from China’s General Administration of Custom
In the first quarter of this year, Vietnam exported 36,800 tonnes of durian to China, compared to just 17,900 tonnes from Thailand, official data show.
Thailand maintained a 66% market share in China during the first four months of this year. However, according to Chinese customs data, Vietnam’s share by value rose by 82% in the period.
Dang Phuc Nguyen, general secretary of Vietnam Fruits & Vegetables Association, said that farmers in the southern region have successfully applied new techniques in growing durian.
“Durian is a strong advantage for Vietnam in competing for the China market. There are times when Vietnamese sellers are the only ones with supply”, he said.
Last year China bought $2.1 billion worth of durian from Vietnam, but the figure can reach as high as $3 billion this year, he added.
Questions & Answers
Q.What issues are Thai durian growers experiencing due to the recent heatwave?
What issues are Thai durian growers experiencing due to the recent heatwave?
The heat is causing durians to ripen faster, preventing them from reaching full size and reducing their market value. Some durians are developing cracked skin or dry fibres, leading to sales below market rate.
Q.How much has the value of Thai durian exports to China decreased this year compared to last year?
How much has the value of Thai durian exports to China decreased this year compared to last year?
Thai durians exported to China in the first four months of 2024 have lost 49% of their value compared to the same period in the previous year. This is partly due to lower prices and reduced production.
Q.What competitive advantages do Vietnamese durian exporters have over Thai exporters?
What competitive advantages do Vietnamese durian exporters have over Thai exporters?
Vietnamese exporters benefit from lower costs by shipping durian across a single land border to China. This logistical advantage, alongside new growing techniques, results in lower prices for their durians.