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The economics of durian

I know, this is an issue that divides humanity. Either you love it, or loathe it.

Durian is king of fruit for many. But also an unbearably smelly, spiky, and intoxicating fruit for others. Not only for those outside this region, even among South East Asians, where the fruit is found aplenty and allegedly originated, the division is clear and unforgiving.

For me though, the more interesting fact about durian is how little we know about its trade.

What is the worth of durian trade globally? Is durian even an export commodity? Hard to tell.

One estimate suggests that durian is worth nearly $90 billion per year. Thailand being the largest exporter of durian – in all forms and packaging, with 95% worth of shipment to Middle East, Europe and the US. Few other Asian producers cater the rest – the one in the picture is durian from Sri Lanka on display at a supermarket in Bahrain.

This makes sense. Most of the durian traffic in countries like Indonesia or Malaysia are for the domestic markets. We hardly send out even our best variety.

In fact, each country or locality has its own variety of durian. Malaysia is famous with ‘musang king’, a duriancreme de la cremefrom Gua Musang in Pahang, Thailand with monthong, while Indonesia has more local champions variety that are popular locally, such as durian merah, kunyit orbawor.

Although durian is best, or worst – depending on which side you are in, consumed raw, but it has found its way into ice cream, pan cake, and other derivatives. But I think ice cream is most suitable and less offensive taste wise.

An emerging trend is a durian cafe, where you can have durian in all forms and shapes. Raw, the best. Juices, yes please. Pan cake durian, nice.

And such a place is very, very popular. Si Bolang or Ucok Durian in Medan are two prime examples of such place. Even dignitaries like Jokowi, Ministers or celebrities took time to enjoy durian here when they’re in town.

This has surely elevated durian to a new level ofhaute coutureconsumption.

My one question, though, which side are you in?Love it, or hate it?

Originally published on LinkedIn, August 23, 2022: view original.

Economist and Certified Financial Planner (CFP®) working on Islamic finance and household financial decisions in Indonesia. PhD in Finance, University of Glasgow.

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