Philippine durian prices crash, farmers seek to lessen reliance on China

Durian farmers in the Philippines are facing a severe income crisis as wholesale prices in Davao have crashed to as low as 25 pesos (about $0.42) per kilogram. This dramatic price drop is attributed to a surge in durian supply from across Southeast Asia, coupled with fierce competition in the lucrative Chinese market.

While the Philippines is a major durian exporter to China, the market is now flooded with produce from Thailand and Vietnam, both of which are increasing their output and export capabilities. This intensified competition, along with improved cold chain logistics, has driven down prices in China by 10% to 20%. The overflow of durians that cannot be exported to China is being redirected to the domestic market, further depressing local prices.

Amidst this price pressure, rumors circulated online that China had completely stopped buying Davao durians. The Philippine Department of Agriculture has since clarified that this is not true, but the underlying issue of oversupply and market competition remains. To mitigate the impact on farmers, the Philippines is actively exploring new export destinations. A recent trial shipment of 1.08 metric tons of fresh durians was sent to Muscat, Oman, marking a step towards diversifying its export base beyond China, which currently also includes Hong Kong, Japan, Singapore, and South Korea.

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The wholesale price of durians in Davao's major durian-producing areas once dropped to only 25 pesos per kilogram.