Author: Pan Yinru Qian Xiaoyan

At the imported fruit market in Shanghai, standing next to the Philippine durian that has just arrived in China, the Philippine ambassador to China Jaime Florcruz confidently promoted it with skilled Chinese, "The quality of Philippine durian is guaranteed, not sweet and no money!" ”

On January 1 this year, the General Administration of Customs of China officially announced that it allowed the import of Philippine fresh durian that meets the relevant requirements. In April, before the first season of durian season in the Philippines ended, a large number of durians entered China by air and sea.

Durian, with golden flesh, rich aroma and dense taste, has become the new favorite of Chinese consumers. At present, China has become the world's third largest consumer of durian after Indonesia and Malaysia. China produces almost no durian itself and relies on imports to meet consumer demand. Fresh durian from Thailand and Vietnam and frozen durian from Malaysia have been allowed to enter the Chinese market.

"Previously, Chinese consumers were enthusiastic about cherries. The annual import volume of cherries reaches more than 2,4 containers," Wang Jianjun, general manager of Shanghai Wonong Import and Export Co., Ltd., told CBN, "Today, durian is the only imported fruit that exceeds cherries." Last year, the import volume of fresh durian reached more than <>,<> containers. Middle- and high-income households are the main consumers of consumption. ”

China's durian market welcomes new players

On April 4, the first batch of Philippine durian arrived in Shanghai by air, which means the official launch of Philippine fresh durian exports to China. On April 7, the sea-shipped durian also arrived in the Chinese market.

Jimmy told the first financial reporter that China's market is full of vitality and healthy growth, and Chinese consumers also maintain an open mind to new things. The Philippines began to promote the export of durian to China as early as 2018, and after years of hard work, it is very happy that the first batch of durian has arrived in the Chinese market, and I am very confident about the future prospects.

Wang Na, director of the Chinese market of Dole market, a Philippine durian importer, told reporters that the company originally planned to ship Philippine durian to China mainly by sea, but due to the strong market demand, more expensive air freight was adopted.

However, whether by sea or air, the starting point of durian to China is basically in the southern Philippine city of Davao. The city is known as the "fruit basket" of the Philippines, and durian production accounts for about 80% of the country's production. Davao is also the hometown and base of former Philippine President Rodrigo Duterte, who has also been seen tasting durian on the streets of Davao.

Compared with other durian varieties, DaWo's local durian varieties are not only more resistant to pests, but also have higher yields, and were previously mainly exported to Thailand, Malaysia, South Korea, Singapore and other places. Among this durian variety, the main and most popular variety "Puya" is rich in sweetness and silky and rich in taste.

Wang Na told reporters that at the end of 2022, after learning that Philippine fresh durian was about to enter China, the company immediately sent a team to the Philippines for field investigation, and among more than 10 mainstream Philippine durian varieties, it also chose Golden Puya durian to enter the Chinese market.

There is no shortage of imported durian in the Chinese market, and before the Philippine durian entered China, Thailand's Golden Pillow, Malaysia's Musang King and other durian varieties are familiar to Chinese consumers.

Wang Jianjun told First Finance and Economics that the total amount of durian cultivation in the Philippines is not as large as that of Thailand and Vietnam, and the planting level is relatively primitive, and the appearance may be some fur, not so beautiful, "but its taste is very good, and the time to market and Thai durian are perfectly staggered." ”

According to Wang Jianjun, the golden Puya durian season introduced by Dole this time is in February ~ April and August ~ October every year, which can make up for the window period of Thai golden pillow fresh durian.

A durian dealer told First Finance and Economics that Thailand's golden pillow is mainly listed at the end of March ~ June every year, and Malaysia's Musang King will not be listed until about November and December every year, and Malaysia's Musang King is mostly liquid nitrogen frozen transportation, not fresh durian.

First Finance saw at the scene that the flesh of Dole Golden Puya durian was redder. Some on-site tasters said that the taste is richer than that of Thai golden pillows.

As for whether competition will be formed in the Chinese market, Wang Jianjun does not agree. In addition to the peak time of the market, Wang Jianjun said that the current price of durian in the Philippines has certain advantages compared with durian in Thailand, Malaysia and Vietnam. He expects the company's annual turnover of Philippine durian to reach 2000,<> tons.

In 2022, durian ranked first in China's fruit imports, reaching US$40.3 billion, with imports reaching 82,5 tons, nearly tripling compared to 2014, while cherries (fresh cherries) were imported with US$2022.27 billion and 7,36 tonnes in 7. According to customs data, between 2015 and 2022, the compound growth rate of China's fresh durian imports reached 17%.

Frost & Sullivan believes that with the upgrading of people's consumption, the demand for high-quality fruits is increasing. Thanks to this trend, high-quality imported fruits are particularly popular in the market. It is estimated that in the next five years, durian, cherries and mangosteen will still be the top three fruits in China's large-scale fruit consumption growth.

China's agricultural trade with RCEP members is booming

From Cambodian longan, to Vietnamese passion fruit, and then to Philippine durian, more and more fruits from neighboring countries have entered the Chinese market and entered the table of Chinese consumers. This is inseparable from the Regional Comprehensive Economic Partnership (RCEP).

On January 2022, 1, RCEP officially came into effect. At that time, it was the first to take effect in the 1 countries that had formally submitted their instruments of ratification, namely Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam, six ASEAN member countries and four non-ASEAN member countries, Japan, New Zealand and Australia. Over the past year, RCEP has entered into force in South Korea, Indonesia and other member countries.

The RCEP region is an important agricultural production area in the world, bringing together the world's major producers of rice, palm oil, rubber, aquatic products and so on. Therefore, more than a year after the entry into force, agricultural trade between China and RCEP members has been booming.

According to public information, China's zero tariff proportion for ASEAN agricultural products is 92.8%, Australia 91.5%, New Zealand 92.0%, South Korea 88.2%, and Japan 86.6%; The proportion of zero tariffs on China's agricultural products in ASEAN countries is between 61.3% and 100%, Australia 98.5%, New Zealand 96.1%, South Korea 62.6%, and Japan 57.8%.

According to China's Ministry of Commerce on the 12th, the Philippines has formally deposited the "Regional Comprehensive Economic Partnership Agreement" (RCEP) approval instrument with the ASEAN Secretary-General. According to the regulations, RCEP will enter into force for the Philippines on June 6. This marks that RCEP will take full effect on 2 member countries, and the world's largest free trade area will enter a new stage of full implementation.

Yuan Bo, deputy director and researcher of the Asia Institute of the Academy of International Trade and Economic Cooperation of the Ministry of Commerce, told the first financial reporter, "After reaching RCEP, the 'trade creation' effect will be more obvious between members who have no free trade agreement arrangement and the level of tariff barriers is relatively high." ”

After the entry into force of the agreement, more than 90% of the region's trade in goods will gradually achieve zero tariffs. Among them, the proportion of immediate zero tariffs between China and ASEAN, Australia and New Zealand will exceed 65%.

It is worth noting that since China and ASEAN already have free trade agreement arrangements, tariff preferential products can be added on the basis of RCEP.

Taking the Philippines as an example, in China's tariff commitment table to ASEAN member countries, durian was immediately reduced from 20% to 0 in the first year of RCEP entry into force; The Philippines has further reduced tariffs on some pharmaceutical products, plastics and products, vulcanized rubber, steel products, etc., and China has further reduced tariffs on canned pineapple, pineapple juice, coconut water, pepper, etc.

Jimmy told First Finance and Economics that he is very happy that RCEP will officially take effect for the Philippines, and after enjoying the concessions of tariffs, he hopes that not only Philippine fruits, but also more Philippine products can enter the Chinese market, which is a win-win situation for Philippine producers and Chinese consumers.

According to the "RCEP Impact Assessment Report on Regional Economy" previously released by the Academy of International Trade and Economic Cooperation of the Ministry of Commerce, by 2035, RCEP will drive the overall real GDP of the region, export and import increments to increase by 0.86%, 18.30% and 9.63% respectively compared with the benchmark scenario, and the cumulative incremental scale of exports and imports will reach US$8571.9837 billion and US$2035.0 billion respectively. At the global level, by 12, RCEP will drive a cumulative increase of 2.91% and <>.<>% in world real GDP and import and export trade compared with the benchmark scenario.

Ana Abejuela, agricultural counselor of the Philippine Embassy in China, told the first financial reporter that "durian is the king of fruits, and mangosteen is after fruits", after durian entered the Chinese market, let the Philippine mangosteen gain access has become the next target, they are currently negotiating with the General Administration of Customs of China, hoping that Chinese consumers will taste it next year.

Yicai