FGV to venture into durian business
KUALA LUMPUR: FGV Holdings Bhd is venturing into the durian export business, with the potential of planting the “King of Fruits” on about 1,400ha.
FGV said it signed a heads of agreement with PLS Plantation Bhd at the Belt and Road Forum in Beijing on Sunday to jointly develop cash crops, primarily durian.
FGV group chief executive officer Datuk Haris Fadzilah Hassan said this was part of FGV’s strategy to make use of unplanted areas.
“FGV has identified 1,398ha that is potentially suitable for large-scale commercial planting of durian.
“However, to determine the best areas for durian planting, further assessment, such as suitability of the soil and terrain and availability of water sources for irrigation, is necessary.
“Other potential cash crops for cultivation include rubber, meranti wood, teak and eucalyptus,” he said in a statement.
Haris said durian was the most profitable cash crop from a value per hectare perspective and FGV aimed to capitalise on China’s demand.
“There is a huge potential for the Malaysian durian industry as China is the world’s largest durian consumer,” he said.
In 2017, 72,391ha of land in Malaysia were planted with durian.
Total production in the year amounted to 210,874 tonnes, valued at RM2.79 billion.
The price of durian has also been increasing steadily because of growing demand for the fruit.
The average retail price was less than RM9 per kilogramme in 2013.
It had escalated to an average of RM24.80 per kg in 2017, an increase of more than 100 per cent.
According to the United Nations’ trade data, durian exports to China have been increasing by 35 per cent on average a year.
It was worth US$1.1 billion (RM4.6 billion) in 2017, which was significantly higher than US$243 million a decade ago.
Although Thailand dominates the market, Malaysia is targeting a 50 per cent increase in exports by 2030 as the local industry is reshaping itself for the global marketplace.
PLS, through its subsidiary, Dulai Fruits, has penetrated 10 countries and has 30 years of experience in durian planting an exporting. China is its largest market.