Thailand is working to stimulate the consumption and distribution of 300,000 metric tons of southern durian due to an oversupply caused by a decline in exports to China, primarily related to quality issues. The director-general of the Department of Internal Trade, Wittayakorn Maneenetr, revealed that the durian production in southern Thailand is expected to reach 752,515 tons this year, marking an increase of 30% compared to the last season. Around 35% of the produce has already hit the market, with almost 489,199 tons remaining undistributed.
According to Maneenetr, the early-season price drop is linked to China’s temporary halt in orders due to the quality concerns associated with unripe durians, and the growing competition from foreign suppliers and domestic production from Thailand’s eastern and northeastern regions.
Market Stabilization Measures
To balance out prices, the department has stepped in with initiatives like advance purchases and consumer-targeted promotional campaigns. Currently, Southern Monthong durians are priced at 85-105 baht (US$2.5-3.1) per kilogram for AB grade, 60-80 baht for C grade, and 40-55 baht for D grade.
The designed plan to distribute 300,000 tons of southern durian involves selling 3,700 tons through advance purchase contracts, 9,000 tons via consumption promotion campaigns, and 281,000 tons through off-farm distribution networks. Additional measures encompass establishing direct sales outlets, subsidizing postal delivery costs, and encouraging processing initiatives.
Under its medium-term strategy, the Ministry of Commerce is aiming to engage tourists through consumption campaigns, collaborate with food brands to create durian-based menus, and organize field trips for foreign ambassadors to the major durian-producing provinces, including Chumphon, Surat Thani, and Nakhon Si Thammarat.
Despite the seasonal challenges, the overall durian exports from Thailand remain strong. From the start of the year until July 5, Thailand has exported 908,047.46 tons of durian in 55,831 shipments, which generated more than 104.19 billion baht.
Questions & Answers
What were the main reasons for the drop in durian exports to China?
The decline in exports was primarily due to quality issues associated with unripe durians, leading to a temporary suspension of orders from China.
What are the prices for different grades of Southern Monthong durians?
AB grade durians are priced at 85-105 baht per kilogram, C grade durians at 60-80 baht, and D grade durians at 40-55 baht.
What strategies are being implemented to boost durian consumption and distribution?
Strategies include advance purchases, consumption promotion campaigns, setting up direct sales outlets, subsidizing postal delivery costs, and supporting processing initiatives. Furthermore, there are plans to engage tourists and collaborate with food brands to create durian-based menus.
