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Malaysia's booming durian industry sees new investors, management methods
02 Jun 2019 06:01AM (Updated: 02 Jun 2019 06:10AM)
KUALA LUMPUR: At a swanky sales gallery located in the prestigious township of Mont Kiara, smartly dressed representatives were on hand to greet visitors and usher them in.
Lining the walls of the bright premises were glossy displays featuring the company’s business plan for a durian orchard. There were aerial photos of the orchard and durian varieties cultivated, while a flat screen TV played videos of potential investors visiting the site.
Those who turned up at the sales pitch on a recent Saturday were eager to find out more about the investment scheme and to assess the project’s potential and expected returns.
"Durian is 10 times more profitable than palm oil," the presenter gushed.
For a minimum investment of RM10,000 (US$2,388), investors were guaranteed a return of RM7,700 beginning the fifth year, with expected annual increase.
Such investment schemes have mushroomed in Malaysia along with the growing fame of Malaysian durians abroad, especially the Musang King variety. The thorny fruits found their way to the hearts of connoisseurs not just in Singapore, but also in China, despite their exorbitant price tags.
READ: Durians, blockchain and politics - inside the choppy world of Chinese investors in Malaysia, a commentary
On Thursday (May 30), it was announced that Malaysian companies will be allowed to export frozen whole durians to China, in what is seen as a significant boost to the industry. Prior to the announcement, only durian pulp and paste can be exported to China.
The potential surge in demand has attracted aspiring growers to enter the fray, and some of them rely on crowdfunding to pull off their projects.
From small growers to property tycoons and companies currently investing in palm plantations, everyone is interested to get into the act.
In order to reap bountiful returns, they tap into technology to manage their farms and employ stem grafting techniques to cultivate Musang King durians.
The government, meanwhile, is planning to encourage durian growers through training programmes and financial assistance.
PAHANG, THE DURIAN BELT
Pahang, the third largest state in Malaysia known for its mountains and rainforests, is now making its name as the durian belt.
Once covered by native vegetation and palm trees, the land is now dominated by durian trees and saplings protected by black nettings. Slopes are terraced to maximise arable land area.
One of the newcomers to the durian scene was Mr Ong Boon Hin, who bought a 13.8ha land at Sang Lee, Raub, to start a durian orchard and homestay with an investment of a few million ringgit.
"I believe Pahang has the best environment for durian growth, especially for hill-grown durian. Durian trees here are widely believed to yield more fruits, and the durians are not only larger; they also have great texture and taste," he said.
The 61-year-old fruit wholesaler explained that while managing the trees on slopes could be a challenge, the terraced slopes contribute to equal distribution of water, which means higher survival rate for the trees.
A typical tree takes around five to seven years to mature.
Mr Ong was well aware of the uncertainties - weather and diseases could affect the growth of the durian trees - but he was optimistic about his investment.
"I don’t think it is risky to run a durian orchard, simply because there is a rising demand from China. It has a 1.4 billion population and only 1% has tasted durian so far," he said.
Durians also contribute to tourism receipts to the state, with local and international visitors arriving to savour the creamy delight. Bentong, which is about an hour’s drive from Kuala Lumpur, beckons throngs of durian lovers during the fruiting season.
READ: Is the 'king of fruit' set to conquer the Chinese market?
Its Member of Parliament Wong Tack hoped people would associate Bentong with durian, "just like Japan with sakura".
Mr Wong, who has just returned from a visit to the Shaolin Temple at Henan, China, shared an anecdote: the stoic-looking temple abbot Shi Yongxin has a soft spot for durians.
"When I told him I came from Pahang, the land of Musang King, he was delighted because he is a big durian fan," he said.
DURIAN STEM GRAFTING PREFERRED
Malaysia produces 300,000 tonnes of durians annually, and almost a quarter of the total production is premium durians such as Musang King.
Durian expert Lim Chin Khee noted that the active conversion of agricultural land to durian farms began earlier this year, with smallholders of rubber estates and oil palm plantations nationwide keen to convert part of their land to plant durian trees.
"Conversion was happening quickly because listed companies have jumped on the durian bandwagon by investing in durian farms. This is an indicator that this industry is booming," he said.
To cater to market demand, existing durian orchards have switched their durian variants to Musang King and Black Thorn. Between 2012 and 2019, the wholesale price of Grade A Musang King almost quadrupled from RM9 to RM32 per kg, durian farmers said.
Malaysia's booming durian industry sees arriving to savour the creamy delight. Bentong, which is about an hour’s drive from Kuala Lumpur, beckons throngs of durian lovers during the fruiting season.
READ: Is the 'king of fruit' set to conquer the Chinese market?
Its Member of Parliament Wong Tack hoped people would associate Bentong with durian, "just like Japan with sakura".
Mr Wong, who has just returned from a visit to the Shaolin Temple at Henan, China, shared an anecdote: the stoic-looking temple abbot Shi Yongxin has a soft spot for durians.
"When I told him I came from Pahang, the land of Musang King, he was delighted because he is a big durian fan," he said.
DURIAN STEM GRAFTING PREFERRED
Malaysia produces 300,000 tonnes of durians annually, and almost a quarter of the total production is premium durians such as Musang King.
Durian expert Lim Chin Khee noted that the active conversion of agricultural land to durian farms began earlier this year, with smallholders of rubber estates and oil palm plantations nationwide keen to convert part of their land to plant durian trees.
"Conversion was happening quickly because listed companies have jumped on the durian bandwagon by investing in durian farms. This is an indicator that this industry is booming," he said.
To cater to market demand, existing durian orchards have switched their durian variants to Musang King and Black Thorn. Between 2012 and 2019, the wholesale price of Grade A Musang King almost quadrupled from RM9 to RM32 per kg, durian farmers said.
SOURCE
02 Jun 2019 06:01AM (Updated: 02 Jun 2019 06:10AM)
KUALA LUMPUR: At a swanky sales gallery located in the prestigious township of Mont Kiara, smartly dressed representatives were on hand to greet visitors and usher them in.
Lining the walls of the bright premises were glossy displays featuring the company’s business plan for a durian orchard. There were aerial photos of the orchard and durian varieties cultivated, while a flat screen TV played videos of potential investors visiting the site.
Those who turned up at the sales pitch on a recent Saturday were eager to find out more about the investment scheme and to assess the project’s potential and expected returns.
"Durian is 10 times more profitable than palm oil," the presenter gushed.
For a minimum investment of RM10,000 (US$2,388), investors were guaranteed a return of RM7,700 beginning the fifth year, with expected annual increase.
Such investment schemes have mushroomed in Malaysia along with the growing fame of Malaysian durians abroad, especially the Musang King variety. The thorny fruits found their way to the hearts of connoisseurs not just in Singapore, but also in China, despite their exorbitant price tags.
READ: Durians, blockchain and politics - inside the choppy world of Chinese investors in Malaysia, a commentary
On Thursday (May 30), it was announced that Malaysian companies will be allowed to export frozen whole durians to China, in what is seen as a significant boost to the industry. Prior to the announcement, only durian pulp and paste can be exported to China.
The potential surge in demand has attracted aspiring growers to enter the fray, and some of them rely on crowdfunding to pull off their projects.
From small growers to property tycoons and companies currently investing in palm plantations, everyone is interested to get into the act.
In order to reap bountiful returns, they tap into technology to manage their farms and employ stem grafting techniques to cultivate Musang King durians.
The government, meanwhile, is planning to encourage durian growers through training programmes and financial assistance.
PAHANG, THE DURIAN BELT
Pahang, the third largest state in Malaysia known for its mountains and rainforests, is now making its name as the durian belt.
Once covered by native vegetation and palm trees, the land is now dominated by durian trees and saplings protected by black nettings. Slopes are terraced to maximise arable land area.
One of the newcomers to the durian scene was Mr Ong Boon Hin, who bought a 13.8ha land at Sang Lee, Raub, to start a durian orchard and homestay with an investment of a few million ringgit.
"I believe Pahang has the best environment for durian growth, especially for hill-grown durian. Durian trees here are widely believed to yield more fruits, and the durians are not only larger; they also have great texture and taste," he said.
The 61-year-old fruit wholesaler explained that while managing the trees on slopes could be a challenge, the terraced slopes contribute to equal distribution of water, which means higher survival rate for the trees.
A typical tree takes around five to seven years to mature.
Mr Ong was well aware of the uncertainties - weather and diseases could affect the growth of the durian trees - but he was optimistic about his investment.
"I don’t think it is risky to run a durian orchard, simply because there is a rising demand from China. It has a 1.4 billion population and only 1% has tasted durian so far," he said.
Durians also contribute to tourism receipts to the state, with local and international visitors arriving to savour the creamy delight. Bentong, which is about an hour’s drive from Kuala Lumpur, beckons throngs of durian lovers during the fruiting season.
READ: Is the 'king of fruit' set to conquer the Chinese market?
Its Member of Parliament Wong Tack hoped people would associate Bentong with durian, "just like Japan with sakura".
Mr Wong, who has just returned from a visit to the Shaolin Temple at Henan, China, shared an anecdote: the stoic-looking temple abbot Shi Yongxin has a soft spot for durians.
"When I told him I came from Pahang, the land of Musang King, he was delighted because he is a big durian fan," he said.
DURIAN STEM GRAFTING PREFERRED
Malaysia produces 300,000 tonnes of durians annually, and almost a quarter of the total production is premium durians such as Musang King.
Durian expert Lim Chin Khee noted that the active conversion of agricultural land to durian farms began earlier this year, with smallholders of rubber estates and oil palm plantations nationwide keen to convert part of their land to plant durian trees.
"Conversion was happening quickly because listed companies have jumped on the durian bandwagon by investing in durian farms. This is an indicator that this industry is booming," he said.
To cater to market demand, existing durian orchards have switched their durian variants to Musang King and Black Thorn. Between 2012 and 2019, the wholesale price of Grade A Musang King almost quadrupled from RM9 to RM32 per kg, durian farmers said.
Malaysia's booming durian industry sees arriving to savour the creamy delight. Bentong, which is about an hour’s drive from Kuala Lumpur, beckons throngs of durian lovers during the fruiting season.
READ: Is the 'king of fruit' set to conquer the Chinese market?
Its Member of Parliament Wong Tack hoped people would associate Bentong with durian, "just like Japan with sakura".
Mr Wong, who has just returned from a visit to the Shaolin Temple at Henan, China, shared an anecdote: the stoic-looking temple abbot Shi Yongxin has a soft spot for durians.
"When I told him I came from Pahang, the land of Musang King, he was delighted because he is a big durian fan," he said.
DURIAN STEM GRAFTING PREFERRED
Malaysia produces 300,000 tonnes of durians annually, and almost a quarter of the total production is premium durians such as Musang King.
Durian expert Lim Chin Khee noted that the active conversion of agricultural land to durian farms began earlier this year, with smallholders of rubber estates and oil palm plantations nationwide keen to convert part of their land to plant durian trees.
"Conversion was happening quickly because listed companies have jumped on the durian bandwagon by investing in durian farms. This is an indicator that this industry is booming," he said.
To cater to market demand, existing durian orchards have switched their durian variants to Musang King and Black Thorn. Between 2012 and 2019, the wholesale price of Grade A Musang King almost quadrupled from RM9 to RM32 per kg, durian farmers said.
SOURCE