China’s Fruit Demand Creates New Opportunities for Laos and Other S.E. Asian Countries

29/10/2024 17:22
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KPL In recent years, durians, often referred to as the "king of fruits," have increasingly gained popularity among Chinese consumers, China Media Group (CMG) has reported.

(KPL) In recent years, durians, often referred to as the "king of fruits," have increasingly gained popularity among Chinese consumers, China Media Group (CMG) has reported. 

According to the Food and Agriculture Organization of the United Nations, 95% of the world's durian exports are shipped to China. Data from the General Administration of Customs China shows that China’s fresh durian imports reached US$6.7 billion in 2023, with most of the supply coming from Southeast Asia.

To meet the growing demand for durians in China, several Southeast Asian countries have ramped up their production. Over the past 12 years, Thailand's durian production has nearly doubled, and many Vietnamese farmers who once cultivated coffee are now switching to durian cultivation. 

Recently, Laos has also begun developing its durian industry. In the near future, an agricultural company in Pakxong district, southern Laos, is preparing to expand its durian plantations to meet the rising domestic demand and aims to export to China by 2025. Representatives from the Lao Agricultural Business Association, the Lao durian industry, and Chinese importers of agricultural products held a trilateral meeting in august focusing their discussion on potential export of Lao durians to China.

Transporting tropical fruits such as durian and bananas presents challenges due to their perishable nature. Rail transportation has proven to be the most cost-effective and reliable method. 

As a key contributor to the "Belt and Road Initiative," the Laos-China Railway has become a powerful driver for Laos’ development. Operational since December 2021,

Traveling by train along the China-Laos Railway from Vientiane, Laos, to Kunming, China—a major trade hub in southwestern China—now takes less than 10 hours. The China-Laos Railway has transformed the export landscape for tropical fruits from Thailand and Laos. Thai durians and Lao bananas are increasingly entering the Chinese market via this railway route. Recently, a shipment of 390 tons of high-quality Lao bananas was transported from Vientiane Southern Station in Laos to Beijing, China, via the China-Laos Railway. With this cold-chain train service now operational, Lao bananas’ market share in Beijing is expected to rise from 30% to 50%.

The Lao government has also placed high hopes on the banana and durian farming sectors, expecting them to help alleviate poverty. During a guidance visit to a durian farm in southern Laos, Prime Minister Sonexay Siphandone encouraged investors to create employment opportunities for local people and promote basic infrastructure development while ensuring environmental friendly standards are met.

KPL

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