How has the novel coronavirus outbreak impacted Malaysian durian prices?

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Novel Coronavirus Outbreak Halves Malaysian Durian Prices Amidst Plummeting Chinese Demand

The novel coronavirus (2019-nCoV) outbreak has significantly impacted the Malaysian durian industry, leading to a sharp decline in prices over the past two weeks. This downturn is primarily attributed to a substantial slowdown in demand from China, exacerbated by disruptions in the logistics industry, city-wide lockdowns, and altered consumer behaviour within the country.
Sharp Price Declines Across the Board

Durian farmer Andy Tan reported a minimum 50 per cent drop in his durian prices. Tan, who typically exports whole fruits and frozen durian paste to major Chinese cities like Beijing, Shanghai, Guangzhou, and Qingdao, has experienced a near-cessation of orders. This price reduction extends to premium varieties, with the highest grade Musang King variant seeing its price halved to RM30 per kilogram from RM60 per kilogram in Raub, Pahang, the state often referred to as Malaysia's durian capital.
Logistical Challenges and Reduced Orders

The outbreak has severely affected the transportation of durians to China. Manpower shortages within the logistics sector and significant delays in customs clearance have forced farmers like Tan to halt processing for the Chinese market. Chinese companies are reportedly importing fewer durians not due to import bans, but rather due to a decreased market demand within China itself, where consumers are less inclined to engage in group consumption of luxury food items during the current health crisis.
Impact on Durian Tourism and Future Outlook

Beyond exports, durian tourism in Malaysia has also suffered considerable setbacks. One farm near Bukit Fraser, which usually hosts durian buffets and tours, has witnessed a 75 per cent decrease in visitors since the Chinese New Year period. While some operators have considered temporary closures due to the reliance on Chinese tour groups, there remains optimism that the situation will improve. Industry stakeholders hope that by the peak durian season, from April to August, the virus will be brought under control, leading to a restoration of demand and a recovery for the local durian industry. The ability to store durians in liquid nitrogen freezers for up to two years offers a buffer against short-term slowdowns.

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How has the novel coronavirus outbreak impacted Malaysian durian prices?

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