NutryFarm signs two purchase contracts for 570 containers of fresh Durians

NutryFarm International Limited signed two binding purchase agreements with Royal Farm Group (RFG) Co., Ltd and Thung Thang Thong (TTT) Co., Ltd. As per the deal, the company has entrusted RFG and TTT to buy an estimated volume of 270 and 300 containers of fresh durians in Thailand respectively.

The price will be depending on market price which is acceptable to the group and the orders will be placed in batches. The group shall make a pre-payment of not exceeding 30% of the order amount upon confirmation of each batch order with the remainder to be paid within 1 month after delivery.

It has been put into notice that products will undergo strict quality control on the basis of the requirement of the logistics partner as well as during the transportation and warehousing.

Headed by the CEO of the group, Cheng Meng, an industry veteran in the durian industry, the NutryFarm group has entered into a number of agreements to sell more than 1,480 containers of fresh durians from Thailand to leading Chinese fruit importers since December, 2020. The total contract value of these agreements is estimated to be around RMB 962.0 million as declared on 13th Feb., 2021.

Together with these latest two purchase contracts, the group has signed purchase agreements to collectively buy 870 containers of fresh durians from different sources in Thailand to fulfill the sales orders. Shipments of the fresh durians have already begun since 20th Feb., 2021 and will continue throughout this year.

In 2020, Thailand exported durians worth US$1.46 billion to overseas markets. This marked a rise of 54.6% when compared to the previous year, with China, Hong Kong and ASEAN nations accounting for 98% of the total export volume.

As per the data from China Customs, China’s imports of fresh and frozen durians in the first half of 2020 touched US$1.62 billion, corresponding to a 73.5% yearly increase and almost reaching the US$1.82 billion imported during the whole of 2019. In the first half of 2020, China’s imports of fresh durians touched US$1.52 billion, corresponding to a 75.7% annual increase.

Cheng Meng, executive director and chief executive officer of NutryFarm stated- “China’s demand for durians has remained high even during the COVID-19 pandemic and Thailand is the only nation that can export fresh durians to China. Specialised knowledge, industry experience and network are the pre-requisites needed in the durian trade, especially when it comes to the cross-border trade of fresh produce, therefore there are significant barriers of entry in this industry.”

“With China’s durian supply depending almost entirely on imports, we feel that the rising demand from the Chinese market can grant us with great opportunities,” he further commented.