The True Cost Of Durian’s Explosive Growth | True Cost | Business Insider

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Summary

Durian, the "king of fruits" in Asia, is experiencing soaring demand, especially in China. This boom has led to a conflict in Malaysia where small-scale durian farmers are battling a large corporation and the local government over land rights and profits. Farmers, some of whom have cultivated durian for generations, are being pushed out or forced into unfavorable contracts, raising questions about who truly benefits from the durian craze.

Highlights

The Durian Craze and Its Consequences
00:00:00

Demand for durian, particularly the Musang King variety, is skyrocketing, with China's imports surpassing cherries and bananas. This has created a lucrative business, drawing in even Malaysia's royal family. However, the expansion comes at a cost, as small farmers face a land dispute with a large corporation and the government, leading to the destruction of their durian trees.

Farmers' Plight and the Musang King Durian
00:00:38

In Malaysia, 15,000 durian trees were cut down by the state government. While the land is technically public, farmers have cultivated these trees for generations. These farmers are credited with popularizing the highly valuable Musang King durian. Farmers like Tanway Kiat believe these actions are a scare tactic to force them off their land or into unfair contracts. Tan, who lost his entire farm, now works at a durian collection stall.

The Durian Collection Process and Export Market
00:02:16

Raub, Malaysia, is a hub for durian collection, where fruits undergo rigorous quality checks before export. The best durians come from trees over a decade old. Workers sort through up to 400 baskets daily during peak seasons. The majority of these durians are exported to Singapore, but China's demand has also been a significant driver of growth.

The Business of Durian: Demand and Quality Control
00:03:31

Kelvin Tan, who runs 99 Old Trees, a durian business, has seen sales soar due to the pandemic preventing Singaporeans from traveling to Malaysia for cheaper durians. He sells various durian varieties and emphasizes strict quality control, looking for specific color, fragrance, and creaminess. Sub-standard durians are rejected. His team sells up to 4,000 pounds of durian a day, a significant increase from 2018, driven by growing Chinese demand.

The Land Dispute: Royal Involvement and Unfair Contracts
00:04:53

Chang Mun, another durian farmer, lost two-thirds of his trees in July, many of which were planted by his father over 20 years ago. The conflict escalated in 2020 when the government leased over 5,000 acres in Raub to Royal Pahang Durian Group, a private company with the Malaysian royal family as its biggest shareholder. Farmers are given two options: leave or sign a contract that caps profits and forces them into unfavorable terms, described by state assemblyman Chao You Hei as treating farmers like "modern slaves."

Farmers' Resistance and the Future of Durian
00:07:07

Farmers have refused to sign the unequal contract and have filed a lawsuit, forming the Save Musang King Alliance. The state government claimed the destroyed trees were in a national forest preserve, but farmers assert that a January court decision protected the land. With Malaysia's durian exports projected to increase by 50% by 2030, the question remains whether small farmers will benefit from this growth or lose everything amidst the escalating durian craze.

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