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NutryFarm enters purchase contracts for 570 containers of fresh Durians
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Saturday, 20 March, 2021, 15 : 00 PM [IST]
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Singapore
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NutryFarm International Limited has entered into two binding purchase agreements with Royal Farm Group Co., Ltd and Thung Thang Thong Co., Ltd. Under the agreements, the group has entrusted RFG and TTT to purchase an estimated volume of 270 and 300 containers of fresh durians in Thailand respectively.
The price will be based 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 more than 30 per cent of the order amount upon confirmation of each batch order with the remainder to be paid within 30 days after delivery.
It is also agreed that the companies shall guarantee the quantity of goods shipped from Thailand and exercise strict quality control based on the requirement of the logistics partner as well as during transportation and warehousing.
Led by the Group's CEO, Cheng Meng, an industry veteran in the durian industry, the group has entered into various agreements to sell over 1,480 containers of fresh durians from Thailand to major Chinese fruit importers since December 2020. The total contract value of these agreements is estimated at approximately RMB 962.0 million as announced on February 13, 2021.
Together with these latest two purchase contracts, the group has entered into purchase agreements to collectively purchase 870 containers of fresh durians from various sources in Thailand to fulfil the sales orders. Shipments of the fresh durians have already started since February 20, 2021 and will continue throughout 2021.
In 2019, Thailand exported US$1.46 billion worth of durians to overseas markets, a rise of 54.6 per cent from the previous year, with China, Hong Kong and ASEAN nations accounting for 98 per cent of export volume.
According to data from China Customs, China's imports of fresh and frozen durians in the first half of 2020 reached US$1.62 billion, corresponding to a 73.5 per cent year-on-year 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 reached US$1.52 billion, corresponding to a 75.7 per cent year-on-year increase.
Cheng Meng, executive director and chief executive officer, NutryFarm, said, "China's demand for durians has remained strong despite the Covid-19 pandemic and Thailand is the only country that can export fresh durians to China.Specialised knowledge, industry experience and network are required in the durian trade, particularly when it comes to the cross-border trade of fresh produce, hence there are significant barriers of entry in this industry.”
“With China's durian supply relying almost entirely on imports, we believe that the growing demand from the Chinese market can provide us with significant opportunities," he added.
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