Durian drives southern economy with new Chinese 700 million baht factory

[webfact]

Durian drives southern economy with new Chinese 700 million baht factory

By The Thaiger

 

 

A Chinese company has invested 700 million baht to establish a durian processing factory in Songkhla’s Thepha district. The establishment of the Kunming-based company in southern Thailand is an indication of the growing love for durian in China and a growing export potential for the ‘love-it-or-hate-it’ fruit.

 

Manguwang Food Company will employ up to 1,200 workers at its 700 million baht (US$24 million) factory in Thepa. The factory will freeze dry and package durian grown in the region for export to China, where products made from the fruit are in increasing demand.

 

The company started freezing and exporting local south Thailand durian at the start of July.

 

The target is to export 12,000 tonne of durian each year, roughly a third of the total output from the southern provinces, growing the business to 20,000 tonnes in exports in following years.

 

Good news for the local farmers is that the factory is buying quality durian product at higher prices than local buyers. The factory produces freeze-dried durian and quick frozen durian pulp.

 

Durian became even more popular around the region when Alibaba co-founder Jack Ma showcased the magic of digital commerce when he visited Bangkok in April 2018, selling 80,000 ‘golden-pillow’ durians within a minute on his retail website T-mall.

 

Thailand exported more than 600,000 tonne of fresh durian and durian products such as candy bars last year to China, according to the Thai Ministry of Agriculture and Cooperatives.

 

In Yala, Pattani and Narathiwat – the three southernmost provinces on the Malay border – there are about 50,000 rai of durian plantations, mostly in highland areas. The greater southern region produces between 120,000-150,000 tonnes of durian per year.

 

 

Source: https://thethaiger.com/news/business/durian-drives-southern-economy-with-new-chinese-700-million-baht-factory

 

 

-- © Copyright The Thaiger 2019-07-29

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[jaiyen]

A great business opportunity for Thailand overlooked.  China builds factory (years quicker than a Thai company would) and pays a good price to farmers for durian, way better that the Thai price.  China takes over another enterprise that Thailand is too slow to see.

[nobodysfriend]

3 hours ago, webfact said:

 

Good news for the local farmers is that the factory is buying quality durian product at higher prices than local buyers.

Well , the local buyers won't be happy about that ...

[Isaan sailor]

Another ChiCom takeover.  Main casualty here—the average durian-loving Thai family.  So greatly reduced Mekong River flows and sky-high durians.  When will it go too far?

[losworld]

3 minutes ago, Isaan sailor said:

Another ChiCom takeover.  Main casualty here—the average durian-loving Thai family.  So greatly reduced Mekong River flows and sky-high durians.  When will it go too far?

expect inflation to skyrocket as fruit and veg continues to china reducing supply here...

[Stocky]

Well there's a glut of durian this month. Pick-ups, just like the one in the picture above, parked up on the kerb all over Hat Yai piled high with durian.

[Johnnyngai]

I hope the Chinese durian factories do not water down their products

like their powder milk factories 10 and 13 years ago. 

  

 

[Srikcir]

39 minutes ago, losworld said:

expect inflation to skyrocket as fruit and veg continues to china reducing supply here...

Most certainly.

Especially that since 2015 China has had a yuan clearing bank in Thailand, aimed at easing trade and investment with Thailand and South East Asia. The move was intended to “enhance the internationalisation of the RMB , especially the utilisation of RMB in the cross-border transactions in Thailand and Southeast Asian countries.”  https://www.reuters.com/article/thailand-icbc-yuan/chinas-icbc-opens-yuan-clearing-bank-in-thailand-idUSL4N0XJ1RL20150422

What this means is that Chinese investments in Thailand can be done directly in yuan without converting to baht. This advantage gives China an indirect driver for GDP growth even though it's making foreign investments. In effect Chinese capital isn't really leaving China. The converse holds true for Thailand under its 2014 trade agreement with China; but unlikely to be significant as China doesn't have an open market. https://www.scmp.com/news/china/economy/article/2161265/china-open-economy-beijing-says-it-imf-differs

 

One is left to ask, where is the Prayut government's investment in the South? Albeit it has been very generous with the rubber farmers when it comes to subsidies to prop up rubber prices. But historically rubber farmers have been pro-military supporters. So the Prayut may have had a political bias whereas China has only an economic bias - make money.

[Burma Bill]

2 hours ago, nobodysfriend said:

Well , the local buyers won't be happy about that ...

Yes indeed, prices in the local markets could "sky-rocket" causing a bit of a stink!!

[atyclb]

32 minutes ago, Burma Bill said:

3 hours ago, nobodysfriend said:

Well , the local buyers won't be happy about that ...

Yes indeed, prices in the local markets could "sky-rocket" causing a bit of a stink!!

 

 

agree, who needs a fruit that smells like grandmas pushy?