Many Chinese traders are fleeing Thailand because of a poor durian harvest and higher prices compared to Vietnam.

Many Chinese traders are not renewing their contracts to rent fresh durian packing facilities due to heavy losses caused by poor durian harvests in Thailand and fierce competition with Vietnamese durian.

Fresh durian packing plants in Thailand are devoid of Chinese traders due to losses - Photo: THAIRATH

Every October, thousands of Chinese traders flock to renew contracts for packing fresh durian at fruit markets in Chanthaburi province, Thailand's "durian capital," in the central part of the country.

However, according to the Prachachat newspaper (Thailand), even though it is already November, the prime fresh durian packing workshops in Noen fruit market, Tha Mai district, Chanthaburi province, remain deserted and quiet.

Many durian packing factory owners here have even reduced the rent for their premises from 800-1,200 baht/m2 (over 23-35 USD) to 700-1,000 baht/m2 (20.5-29 USD), but still cannot find tenants.

The reason why new Chinese durian traders are "fleeing" and not renewing their contracts to rent fresh durian packing facilities is because they have already incurred losses of up to 70-80% compared to last year.

Thai owners of durian packing plants are expected to incur losses of 10 to 20 million baht per plant, a decrease of over 50% compared to the same period in 2023, due to low durian production and increased competition for purchasing durian from farmers.

This year's durian harvest in Thailand has been significantly reduced due to a fruit-boring pest infestation in southern Thailand. Additionally, transportation in the region is currently hampered by natural disasters and cadmium (Cd) pollution – a heavy metal.

Previously, Thai durian was rumored to be contaminated with cadmium due to air pollution. However, after rigorous testing, the Thai Ministry of Agriculture confirmed on November 4th that the durian shipments exported to China in the second batch of 2024 were not contaminated with this metal.

Furthermore, the lower price of durian at orchards in Vietnam compared to Thailand has increased competition between Thai and Vietnamese durian.

The current price per container of durian is around 3-4 million baht (over $87,000 - $117,000 USD), about 500,000 baht (over $14,600 USD) lower per container than last year. Meanwhile, the cost of renting a durian packing facility is as high as 2-3 million baht (over $58,000 - $87,000 USD) per year.

Therefore, many durian traders from China have "fled" from the race to import fresh durian into the country.

China is one of Thailand's largest importers of fresh durian.

Source: https://tuoitre.vn/nhieu-thuong-lai-trung-quoc-chay-khoi-thai-lan-vi-sau-rieng-thai-mat-mua-gia-cao-hon-viet-nam-20241110170850827.htm