A “durian tsunami” sees prices dive across domestic and export markets
Malaysia’s Federal Agricultural Marketing Authority (Fama) has launched a Seasonal Fruit Marketing and Intervention Plan to help manage surplus durian supply as the season begins to ramp up.
According to a report from Bernama, Fama Kedah director Shaiful Azhar Zolkipli, said the initiative aims to stabilise farmgate prices and increase farmers’ income by expanding marketing channels, strengthening purchasing centre operations and increasing processing activities to absorb excess durian supply throughout the production season.
“Fama’s monitoring found that the average farmgate price for kampung durian currently ranges between RM1 and RM4 per kilogramme depending on location, fruit quality and supply volume,” said Zolkipli.
“To address the situation, Kedah Fama is implementing three key strategies, namely expanding marketing channels through ten seasonal fruit sales locations across the state and establishing three Temporary Purchasing Centres (PBS) operated by Fama together with entrepreneurs under its guidance.”
The peak season runs between June and August and the surge in volume is already putting pressure on prices. One BBC report spoke to Durian Ninja, a fruit store in Singapore, that had been giving away free durians since mid-June. Owner Kee Eng Chai said the store gives out two free durians per customer, which are usually exhausted in one-two hours. The remaining fruit is sold for as little as S$1 for small portions.
However, not all of the country’s durians are facing a price crunch. Durian Manufacturers Association president Eric Chan told The Straits Times, that the current season is seeing large volumes of durian from Perak, Penang and Johor hit shelves at the same time, and an excess of lower-grade fruit is affecting the bottom of the market.
“The price drop is due to a lot of fruits not meeting export requirements, particularly for China,” he said.
“For the past ten years, prices have been rising. In every commodity sector, there will eventually be a period of restructuring and consolidation as the supply chain matures,” he added.
Durian orchard owner Stephen Chow said export-grade fruits remain relatively insulated from the price slump.
“Grade A and AB fruits that qualify for export are still selling at RM30 to RM40 per kg. The biggest impact is on Grade C and smaller fruits,” he said.
To support the durian industry as the season progresses, Fama has also prepared 142 cold rooms with a total storage capacity of 1,600 tonnes to preserve product quality and reduce market pressure during peak production periods.
Based on Fama projections, 1,000 tonnes of seasonal fruits, including durian, valued at RM7mn, are targeted for purchase through Fama Operations Centres this year.
To date, 142.7 metric tonnes have been purchased worth RM1.1mn, while indirect purchases through Fama marketing entrepreneurs have reached 1,099 tonnes with a sales value of RM3.28mn.
Kedah FAMA has also implemented the Eat More Local Fruits Campaign in four schools involving approximately 2,000 students and organised Seasonal Fruit Sales Programmes at six strategic locations. Shaiful Azhar added that Fama was also developing a simulation of the Grading, Packaging and Labelling (GPL) tracking system to strengthen export market readiness.
