Over the years, durian growers in Malaysia have been increasing production levels to meet the rising demand from China. This surge in demand has resulted in an abundance of the fruit, causing a significant drop in prices.
Malaysia, renowned for its prized Musang King durian — often referred to as the “Hermès of durians” — has seen a rapid increase in its export of the fruit over the past decade, particularly to China. This growing demand prompted numerous farmers to join the industry. Consequently, durian plantation areas in the Southeast Asian nation increased from just over 163,000 acres in 2016 to more than 227,000 acres by 2024. Simultaneously, the annual yield nearly doubled, reaching over 568,000 tons.
According to Lu Yuee Thing, owner of several durian farms near Raub, also known as Malaysia’s durian capital, many people had replaced their rubber trees or oil palms with durian trees in the past. These trees are now starting to bear fruit, leading to an oversupply in the market, especially during the harvest seasons in producing states like Kedah, Penang, Perak, Selangor, Johor, and Pahang. This oversupply has caused prices to plummet, with Musang King retailing for as low as RM9 (US$2.2) per kilogram — a 90% decrease from the usual RM90-100.
This situation has been exacerbated by fruit that doesn’t meet export standards and is therefore redirected to the local market. The oversupply of durians has proven advantageous for deal-seekers across Malaysia and its neighboring country, Singapore, but it is a major setback for growers.
Durian farmers and sellers are feeling the strain due to the price drop. Han Sing Keng, a durian farmer and seller in Johor, has had to rely on other crops, such as bananas, to compensate for the lost profits from durian. Han expresses that the pressure from the market is overwhelming for him and believes that the inexpensive, widely available fruit may be substandard in quality.
The Federal Agricultural Marketing Authority (FAMA) in Malaysia has stepped in to aid growers by buying durians directly from them. FAMA plans to purchase 1,000 tons worth RM7 million through 42 operational centers. Additionally, businesses and entrepreneurs supported by the agency have bought another 1,199 tons valued at RM3.28 million.
The challenge now is to ensure that demand keeps up with the rising production. This requires both expansion into new export markets and growing new businesses within the domestic market. FAMA has begun processing excess fruit into pulp, which is supplied to manufacturers of cakes, ice cream, and other food products.
Additionally, Malaysia, as one of the world’s largest durian exporters, is collaborating with Thailand and Chinese customs authorities to develop a land transport route for durian shipments to China, expected to reduce logistics costs.
Lastly, Malaysia’s trade promotion agency, Matrade, announced plans to increase durian exports to China to $229 million by 2030.
What has caused the oversupply of durians in Malaysia?
The oversupply is due to increased production levels, with a significant number of trees planted in previous years now beginning to bear fruit.
How has the oversupply affected the price of durians?
The oversupply has led to a significant drop in the price of durians. The Musang King, for example, is now retailing for as low as RM9 (US$2.2) per kilogram.
What measures are being taken to manage the oversupply situation?
The Federal Agricultural Marketing Authority (FAMA) is buying durians directly from farmers. In addition, efforts are being made to increase demand by expanding into new export markets and creating new businesses within the domestic market.
