Reducing supply chain costs with new logistics solutions considered by Malaysia’s durian industry
Malaysia has assessed new land transport routes to China for its fresh durian to help the industry reduce costs and manage current oversupply.
According to a report from The Straits Times, the Malaysian government has begun discussions with Chinese authorities to establish new land routes that would allow more durian to be trucked to China.
The efforts are being made to reduce logistics costs for durian exporters and help manage Malaysia’s durian glut this season. Only 40 tonnes of durian are flown to China each day and new land routes would increase capacity.
The Federal Agricultural Marketing Authority said it will have bought up 1,000 tonnes of the fruit worth RM7mn by the end of the current peak durian season through August to help ease excess supply.
“The Agriculture Department is reviewing the legal compliance and phytosanitary requirements imposed by the transit countries – Thailand, Vietnam and Laos – before exports via the overland route can be considered,” the department said in response to queries from The Straits Times.
Land shipments could reduce transport costs by up to 40 per cent, according to one Malaysian official. In the meantime, Malaysian industry and authorities are looking at other alternatives to ease the pressure.
Agriculture Department is also working with the Malaysian Agricultural Research and Development Institute to study the export of “pre-cut” harvested durians, which are harvested at the stem before they are fully ripened. Local agencies are studying post-harvest treatment requirements.
