Simultaneous ripening of fruits from different states and weaker demand from China are raising supply in the local market and hastening the approach of the season’s peak.
The ripening of the fruit is normally staggered over several weeks, usually beginning in Penang before moving on to the larger suppliers in Johor, then Pahang, Perak and Kelantan.
However, according to a report on Singapore’s Channel News Asia (CNA), durians from Johor and Penang are now hitting the market at the same time, with those from Pahang also coming in.
Combined with weakened demand from China, there is now a bigger supply in the market.
China has been Malaysia’s main destination for exported durians, followed by Singapore and Hong Kong. However, the weaker economy has stifled Chinese demand by about 20% to 30%. Simultaneously, demand for products such as durian cake has also dropped.
Many factories that process durians have also been stretched to the limit as more fruit comes into the market.
Durians that are for export are sold frozen, either whole or by pulp. The shortage of nitrogen, the freezing agent, has also led to a sharp rise in supply.
Furthermore, it has to be disposed of quickly as it is a perishable item.
As a result, the excess is being pushed for domestic consumption or exported to Singapore, but many stalls in the island republic are already fully stocked up and experiencing slow sales.
According to the CNA report, prices have dropped by almost 50%. The IOI variety, which used to be sold at farms for RM30 per kg, is now fetching only RM15. Kampung durians are going for as little as RM2.
The premium Musang King is now selling at RM58 per kg, down from RM78, while the Red Prawn variety is going for RM29 compared with RM40 previously.
This is a major shift from the situation last month. At the time, a combination of factors such as bad weather and pests led to a 60% drop in supply, giving rise to a price increase of almost 10%.
Nonetheless, market observers expect the current over-supply to taper off in another two to three weeks, which will see prices rise again.