Malaysian, Chinese JV on 1,500 ha of land in Sabah to plant 10,000 durian trees
HANGZHOU, China (Sin Chew Daily/ANN) - Beijing Dianshi Investment Ltd and Bornion Timber Sdn Bhd are working together in durian plantation project on 1,500 ha of land to plant 10,000 trees with an investment of RM1.2 billion. A memorandum of understanding for the first of its kind of joint venture in durian plantation was signed at the One Belt One Road summit cum international trade forum held at Hangzhou, China
Beijing Dianshi Investment Ltd Co and Bornion Timber Sdn Bhd announce setting up a joint venture company to embark on 10,000 durian trees plantation project in Keningau, Sabah on 1,500 ha of land. Total investment is RM1.2 billion.
Dianshi Investment Ltd Co. founder Guo XiaoKun signed a memorandum of understanding with Bornion Timber Sdn Bhd at One Belt One Road Summit cum International Trade forum. Guo said the company is the first to join-venture with Malaysian corporation on durian plantation.
Based on official figures, he said the annual production of durian in Malaysia is 330,000 tonne while the annual consumption of Chinese nationals on durian is 350,000 tonne. Currently, less than 1 per cent of 1.4 billion of Chinese nationals have tasted durian. This means durian has huge potential in China.
Asked whether durian market will only be temporary, he said: “Those who have tasted durian will continue to enjoy the fruit if they like it. Durian market will continue to expand but supply of durian is in consistent and the tree takes seven years to fruit.”
Guo said the company will buy existing durians and import to China in frozen form. Profits would be channelled to cover the investment costs of durian plantation.
He also said Musang King, a type of durian has yet to receive approval for direct import into China. Majority of durian exported to China are frozen without skin.
Guo is of the view that due to limited production, durian can only cater for local market and Singapore market but not China.
“Secondly, Musang King has shorter shelf life and will incur additional costs of transportation. China has yet to have Musang King in the market.
“However, we believe through co-operation and effort, supply of durian will be increased and durian can arrive in China especially with progress in logistics.”