All hail the King of Fruits

ON a humid Saturday afternoon in the middle of July, there are snaking queues at durian stalls scattered all over Petaling Jaya – one of Malaysia’s most populous cities in the state of Selangor – with people patiently waiting for their turn to buy the spiky-husked fruit.

This is far from an uncommon sight in the country, as the King of Fruits, as the durian is widely known, has never failed to draw crowds during its season, which typically starts from June to August each year and lasts until November to January.

Despite the ongoing concerns of higher inflation, soaring interest rates and a weaker ringgit, the demand and allure for durians remain as strong as ever.

The Musang King – one of the most popular durian variants – currently retails for as much as RM90 (S$28) per kilogram, up 20 per cent from RM75 at the end of May. A year ago, you could buy a kilo of Musang King (also known as Mao Shan Wang) for just RM40.

Musang King is coveted by durian-lovers because the flesh has a thick and creamy texture, with a sweet flavour and a hint of bitterness.

Vicky Lai, who works at Durian Man, one of the top durian retailers in Petaling Jaya, said extreme weather has affected durian production for much of this year. The strong demand from durian lovers has only helped to push the prices higher.

Prices of the rarer types of durians such as like Black Thorn and Kunyit Emas have gone up to as much as RM95 per kg, although Musang King remains the most popular of them all, she told The Business Times (BT).

“Our place is crowded all day long during the season with customers who come with their family and friends,” said Lai, adding that her business also offers takeaway and delivery service to customers in other states in Malaysia.

They even ship their durians overseas to customers in Singapore and as far away as Hong Kong.

Lucrative business

China remains one of Malaysia’s most important export markets for durians. Even when most international borders remained closed in October 2020 due to the pandemic, the demand for durians by Chinese customers stayed strong.

At an online durian festival held that month, buyers from China snapped up 300,000 Musang King durians from Malaysia weighing some 60 tonnes in less than an hour of the fruits going on sale.

Although there are no official figures on Malaysia’s durian exports in 2020 and 2021 available as of press time, industry players estimate that China’s demand for durians from Malaysia will reach 22,000 tonnes a year by 2030.

Data from Malaysia’s agriculture department showed that the country produced 377,251 tonnes of durian in 2019. The land used for durian plantations totalled 70,286 hectares (ha) – almost the same size as Singapore.

But just how lucrative is it to run a durian plantation these days?

Malaysia’s former agriculture minister Ahmad Shabery Cheek said a single hectare of land with Musang King trees can yield as much as RM155,000 a year, as compared to around RM17,500 from a hectare of oil palms.

With the growing demand for durians, it’s no surprise that investors are exploring all sorts of ways to get a slice of the pie for themselves, be it as a farm owner or a property agent of land that houses durian plantations.

Entrepreneur Alvin Chong is one of them who spotted the lucrative opportunities in durian plantations back in 2016 when he acquired some land in Pahang.

“Musang King started to catch China consumers’ interest back in 2015, with the price peaking at RM120 per kg in 2016. It was that year when many investors were attracted to start their own durian plantation business,” said Chong, the founder of E & A Plantations, which now owns a 92.3 ha plantation in Selangor, Pahang and Johor.

Other than durian plantations, Chong is looking at expanding the company’s export business by building a nitrogen-freezing facility that would allow him to export more of the fruit to China, Hong Kong, Indonesia and even to the United States.

The interest to invest in durian plantation did not fade even during the 2-plus years of the Covid-19 pandemic, with some investors going so far as to view plots of land virtually before making a purchase, said Great Casa Realty’s senior real estate negotiator Anna Lau, who specialises in the sale of durian plantation land.

She said there is strong interest from investors outside of Malaysia, including from Singapore and China.

In fact, there are some Chinese investors who are looking for large tracts with a minimum size of 20.2 ha.

“I received more enquiries after the Malaysia borders reopened in April this year. One of my listings – a 2.8 ha plot – had 10 viewing requests right after I posted it online,” she added.

Lau said that durian plantations in popular locations, such as Bentong and Bukit Tinggi that have direct access to highways or main roads, have seen their asking prices soar to as much as RM1 million for 0.4 ha.

Plantation land that is further from a main road and without mature durian trees is valued at around RM150,000 to RM200,000 per 0.4 ha.

“However, if the land in less-desired locations is planted with matured trees, preferably popular durian types like Musang King and Black Thorn, it is still possible to fetch RM500,000 to RM700,000 per 0.4 ha,” said Lau.

Jimmy Loke, a 62-year-old former financial trader and an avid durian lover, always dreamed of owning his own durian orchard, where he could plant all the durian trees he wanted and even other fruits, as part of his retirement plan that would also give him some income too to sustain him in his golden years.

In 1987, when he was 27 years old, he purchased a plot of land that had direct access to a highway for RM40,000 per 0.4 ha. He hired some experienced planters to manage his farm while he continued to work in his day job.

“I did a simple calculation based on the selling price of the premium durian at that time – D24 – which was selling at around RM16 to RM18 per kg. I figured it would be able to provide me with a comfortable retirement income after 10 years,” he said.

Loke’s love for durians proved him right.

After he decided to retire and was able to devote his time and energy to his farm fully in 2016, the 30-year-old durian trees were all in good shape and able to produce 200 fruits each every year.

Other than the popular Musang King, Loke’s farm – named Jimmy’s Durian Orchard – also planted varieties such as D24, Tekkah (or Bamboo’s Feet in Hokkien), D101 and Tanjung Sepat.

“Most Malaysians like durians. We have buffets where people can sit at a roadside stall or go to an orchard to enjoy a feast,” he said, adding that there is an increasing number of people visiting his farm during the weekends when they go on road trips or vacations.

Seeing the potential of agro-tourism, Loke turned his orchard into a tourist-friendly destination by adding an air-conditioned cafe and a farmstay, allowing travellers to spend a night or two and enjoy all the durian they wanted.

Low barrier to entry

Durian plantation schemes have attracted many investors over the years, with many seeing this as a viable source of alternative income as they build up their retirement fund.

Chong from E & A Plantations noted that the majority of the durian investment schemes are raising funds for plantation activities, and it typically takes about 7 years for a single tree to bear fruit.

As such, most schemes these days have a lock-in period of at least 15-25 years.

Unlike oil palms, which have a production lifespan of 30 years with a peak crop yield of between 9 and 18 years, durian trees do not have a fixed lifespan.

“For durian trees, the older the better. I even have a century-old tree in my farm which continues to bear fruit. A mature and healthy Musang King tree could yield 150 to 200 fruits a year, while a younger tree might have a smaller yield,” he said.

The earliest a durian tree could produce fruit is between the fifth and sixth year, but the production tends to be unstable. In most cases, such trees may not even yield 30 fruits a year.

The yield improves significantly when the trees reach 10 years and above, he added.

As a durian farmer himself, Chong said that investors should be aware of schemes that promise a 100 per cent yield from their plantation before a single tree is planted.

“The expected numbers are amazing but in reality, to achieve 80 per cent success rate is considered a good achievement, as there are external uncertainties that will affect durian planting such as the weather, soil quality, water and even the wind,” he said.

Many might perceive durian planting to be a lucrative business, but Chong said investors should be ready to spend heavily in the first 5 years or so.

“It would take about RM5,000 to grow a tree, covering the labour and fertiliser costs, excluding the land maintenance,” said Chong.

For any scheme that is too good to be true, investors should stay away from it, said Chong, adding that some of the scheme issuers do not even own the land and trees but promise unreasonably high returns.

“Look into every detail, see if they really own the plot of land, and ask the owners questions if you are unclear,” he said. “Visit the plantations, and if the owners don’t allow you to visit, then it may be a red flag.”