Frequently Asked Questions: Musang King Durian Project
Provided below are some key frequently asked question relating to our Musang King Durian Project.
If you have any questions that are not listed here or would like further clarification please contact us. We are always available to discuss the project in further detail with you.
(1) Who is Agroforestry Group?
Agroforestry Group is involved in projects that aim to make a difference. We offer agricultural and forestry related services to clients ranging from project management and implementation to sales & marketing. We specifically cater towards projects that aim to meet the needs of the worlds growing population while enhancing the limited natural resources the world has to offer.
This existing Musang King Durian project aims at shifting Malaysia's over reliance on the destructive palm oil industry whilst simultaneously meeting rapidly rising demand for the crop across Asia, namely China.
(2) Who is Agroforestry Management?
Headquartered in Kuala Lumpur, Malaysia, Agroforestry Management Sdn. Bhd. “Agroforestry Management” is a company that specializes in growing and managing Durian plantations . Agroforestry Group works alongside Agroforestry Management in the Musang King Durian projects implementation with Agroforestry Management the on ground local driving force. The company’s primary focus alongside Agroforestry Group is on growing and supplying the highly sought after Malaysian Musang King Durian to China, Hong Kong, and Singapore, the world’s fastest-growing Durian markets.
(3) What is Durian Fruit?
Durian fruit is regarded by many people in Southeast Asia as “The King of Fruits”. The fruit is known for its thorn covering, unique taste and distinctive aroma. Although the Durian tree is native to Malaysia, Brunei, and Indonesia, it is also grown in Thailand, the Philippines, and Australia. There are over 500 varieties of Durian grown throughout Asia with Malaysia known to be home to some of the finest tasting and expensive Durians, including the celebrated Musang King Durian.
(4) What is global demand for Durian?
The demand for raw Durian fruit (fresh, frozen, paste and pulp) has a global retail value of over RM 58 billion annually (USD $14 billion), with its value expected to conservatively grow to more than RM 100 billion (USD $25 billion) by 2030. Demand for Durian is increasing across Asia namely China, Hong Kong, Taiwan and Singapore with the bulk of being driven by China’s rapidly increasing consumption levels.
Demand for Durian has grown exponentially over the past ten years as tourism to Malaysia has increased consumer awareness for this exotic fruit. Today Durian is one of the most popular fruits across all of Asia. Its versatility is unmatched in the fruit world being used as an ingredient in juices, pastries, hearty dishes such as hamburgers and pizzas, and even in cosmetics.
Rising demand across Asia has even forced large F&B brands to incorporate Durian into their items and menus. For example, global F&B brands such as McDonalds, Pizza Hut, KFC, Nestle and Starbucks have all had to adapt to regional consumer tastes releasing Durian infused products to capture client demand.
Soaring demand from China's massive population has altered the entire Durian market making it one of the most lucrative assets in our lifetime. Unlike the rest of Asia, China's fascination with Durian has only recently started with consumption shockingly 1500% below the regional average. China consumes only 0.21 KG of Durian per person due to limited supply, compared to a regional average of 3 KG across Hong Kong , Singapore, Taiwan and Indonesia. For comparison purposes, Malaysia the home of the worlds best Durian's consumes 11 KG per person.
As China's consumption rises each year, the Durian market is posed for historic record breaking figures every single year.
2019 saw China import 47% more Durians than the year before, with 2020 so far even more groundbreaking. China’s imports of Durian in the first half of 2020 have totaled RM 6.7 billion (USD $1.62 billion) , a 73.5% increase from 2019.
These figures are even more astounding considering how COVID-19 has impacted almost all other business sectors and imports around the word.
In 2019, Durian became China's most imported fruit for the first time in history, with imports rising 47% over the previous year.
2020, has so far been even more groundbreaking. China’s imports of Durian in the first half of 2020 have totaled RM 6.7 billion, a 73.5% increase from 2019.
(5) What sectors drive Durian Demand?
Durian's versatility is simply unmatched in the fruit world. No other fruit in the world has as an many varied uses from being used as an ingredient in juices, pastries, hearty dishes such as hamburgers and pizzas, and even in cosmetics.
In fact, the fruit is so complex that Scientists in Singapore found and published in the journal of Nature Genetics, that the Musang King Durian genome comprises about 46,000 genes, almost double that of humans who have 23,000 genes.
Durian products typically fall into 4 key market segments: Raw Durian Fruit, Desserts, Snacks, and Beverages.
Raw Durian Fruit
Comprised of fresh, frozen and dry durian
Products include ice cream, cake, jams, and other pastries
Include chips, crackers and confections such as candies
Include coffee, tea, milk and sodas
The key buyers of Durian include:
Global, regional, and local F&B companies that produce their own durian based products from raw durian
Durian product manufacturers that sell white label products, and sell to F&B companies
Specialized fruit stores and stalls
Supermarkets & Restaurants
Specialized traders and importers
(6) What is Musang King Durian?
Malaysia’s Musang King Durian is without question the worlds most sought after and expensive Durian variety due to its creamy texture and delicious bitter-sweet flavor. Its taste and texture is considered far superior than other Durian varieties which has resulted in skyrocketing prices and shortages of supply. This has led to an urgent need for more Musang King Durian plantations within Malaysia. Prices for Musang King have already risen over 200% since 2014.
The Malaysian government noticing the lucrative potential of Musang King has responded by making it a key economic focus. For example, Malaysia has created annual durian festivals, promoted domestic production, and even created an entirely new tourism sector catered towards Durian travel. World-renowned hotels such as the Shangri-La have also begun offering durian travel and dining packages to meet incredible rising demand both domestically and from abroad.
After several years of negotiation, Malaysia and China finally cemented a direct export trade agreement in 2019. The result will even more demand and further price increase as demand far outstrips available supply.
(7) Why is Musang King Durian so expensive?
Prices for Musang King are up to 5x more expensive than other Durian varieties across Malaysia and Thailand due to a combination of growing demand and abnormally low levels of supply. Demand by F&B companies and consumers is being driven by China as well as Hong Kong, Taiwan and Singapore to lesser degrees.
500,000 Musang King trees exist in all of Malaysia which is an astonishingly low level. Malaysia has been ill equipped in managing its precious Musang King Durian resulting in chronic supply shortages and an inability to financially benefit from it. In fact, existing supply is so low that it can only meet 3% of global demand.
(8) What is the current market price for Musang King Durian?
Market prices fluctuate depending on season as well as end market. At the time of this writing, the retail market price in Singapore is 83 RM/KG and ranges up to 500 RM/KG in China.
(9) Why is Musang King Durian appealing to own and purchase?
With rising demand and limited supplies the sector has nowhere but upwards to grow. With consumers in the hundreds of millions in China looking to purchase Musang King over the next ten years, we challenge you to find a more appealing and fundamentally sound product.
Eaten as raw fruit or produced into dozens of other items such as juices, cakes, snacks to even being incorporated into hearty dishes such as pizzas, burgers and steamboat - No other fruit in the world has as may varied uses.
The most versatile fruit in the world
Snacks, Pizzas, Burgers, Steamboat, Cosmetics, Medicine
(10) What is special about this specific Musang King Durian project?
This Musang King project is more than a simple plantation. Almost all existing plantations within Malaysia are operated by family owned businesses or firms using outdated techniques.The market opportunity specifically exists because of lack of knowledge and foresight within Malaysia. The Malaysian government has been actively promoting the sector however specialized knowledge in terms of management, technology and strategy is required to maximize the sectors profitability. This specialized knowledge is simply not readily available within Malaysia.
Musang King has existed in Malaysia since the early 1990s and yet the country has not developed the sector losing billions of revenue through inaction and poor strategic planning. For example, unlike Thailand who has exported Durians to China since the 90s, Malaysia only signed an export agreement in mid 2019. This project does more than just plant Musang King.
This project unlike others is professionally managed, employing knowledge intensive cultivating techniques to maximize productivity in a sustainable environmentally fashion.
Sustainable production is a core tenet for Agroforestry Group, and all Musang Kng Durian land of the project has been created with this in mind. The company is involved in reforestation rather than deforestation, taking land used by the destructive Palm Oil industry and converting it to sustainable environmentally friendly Musang King plantations.
Turn 70,000 RM into 275,000 RM+
Average Annualized Returns of 19.86%
20 Year Annual Harvests, averaging 13,900 RM + per year
Malaysian Durian prices are up over 200% since 2014
World Exports up 26% per year since 2010
Location specific species, the Musang King Durian is ONLY grown in Malaysia
Established exit markets
(11) Why are you offering this Musang King Durian project to others?
Musang King Durian is a unique market opportunity driven by a combination of rising demand and drastically low supply levels. Securing adequate supplies of valuable Musang King sooner rather than later is necessary for market dominance. As such the company has decided to open the opportunity to third parties in order to accelerate growth. It is important to note, that the company only offers clients already operational plantations with existing trees. It also keeps approximately one third of all trees for its own use.
n terms of strategy, the company is interested in securing more resources and moving downstream into higher margin activities in the long run such as distribution. Raised funds enable faster growth which requires forgoing shorter term profit from managing all trees for itself.
(12) What is the purchase price and what return can I expect?
The purchase price starts at approximately 70,000 RM for 5 Musang King trees.
Standard packages increase in blocks of 5 trees.
The expected return on annualized basis is 19.86% based on a guaranteed price of 40 RM/KG.
The above 19.86% annualized return is based on a minimum guaranteed Musang King Durian price of 40 RM/KG. You will, however, receive the market price for all your fruit if that is larger than the minimum guaranteed price.
(13) What costs are involved?
A 30% harvest fee is charged on the funds received from the sale of every clients trees.
No other additional costs exist at the time of this writing. We recommend confirming this prior to purchase.
(14) How do I receive my annual harvest payments and in what currency?
All harvest proceeds are paid within 30 days of Durian Harvests selling your Musang King Durian fruit harvested from your trees. By default, all harvest proceeds are paid by bank wire transfer in RM unless you request otherwise.
(15) How long must I own this for?
You receive a land sublease with your Musang King Durian plantation for a maximum of 20 years. .
(16) How many Musang King Durian fruit does a tree produce?
Each of your Musang King Durian trees is expected to produce fruit that weighs between 2-3 kilograms. The actual weight, however, will only be known when harvested as trees are growing living, biological, and constantly growing organisms. A projection of 1.5 kilograms is expeted, in order to be conservative. This means that your returns will be even larger if they weigh between the average range of 2-3 kilograms.
(17) What price are the Musang King Durian fruit sold for and is this guaranteed?
A minimum guaranteed selling price of 40 RM/KG is provided for all fruits from your trees, however, if they are sold for more, you will receive the higher price that we are selling it for. Currently our wholesale selling prices are around 58 RM/KG in Hong Kong, which would equate to over a 24% annual return.
(18) How do you identify each Musang King Durian tree?
The company carefully records each individual tree through barcoding and unique identification numbers, allowing it to document the tree’s diameter size throughout its growth cycle. Also, Durian Harvests carefully records the exact amount and weight of Durian fruit harvested per tree.
(19) What markets are you focusing on?
The primary market focused upon is Hong Kong. Hong Kong’s insatiable appetite for Musang King Durian is commanding wholesale prices of 58 RM/KG which is greater than nearby Singapore. Also, Hong Kongs accesibility to China means the company can also sell into China for even higher prices. Hong Kong-based Musang King importers are buying up all available supplies years in advance, not only for local consumption but also for re-export across the border into mainland China where retail market prices are currently over 500 RM/KG.
(20) Is any sort of insurance provided?
Yes, asset insurance is provided in the form of tree replacement and clearly indicated in all agreements clients sign.
If any trees are impacted by certain factors such as fire, flooding, droughts and disease they they will be fully replaced. Please refer to the agreement should you wish to see a complete list of covered items.
(21) What documentation is required and what do I receive?
You will receive the following documents:
A sublease agreement that will state your exact details, including the amount of Musang King Durian trees planted and
their exact geographical coordinates.
A management agreement covering all of Durian Harvests’ obligations to you during the 20-year term.
A certified Tree Ownership Certificate, stating the exact amount of trees you own and their exact geographical coordinates
(22) Where is this Musang King Durian project based?
The Musang King Durian plantation is located in the town of Kulai in the state of Johor in Malaysia. Johor, a state in southern Malaysia is linked to Singapore by causeways and is known for its beaches, plantations, and rainforests. The capital of Johor is Johor Bahru, and is the southernmost city in Malaysia.
Johor Bahru is one of the largest cities in the country (2nd biggest) with more than 2.7 million inhabitants. The city is an important industrial, tourism, and commercial hub for southern Malaysia and is one of the biggest industrial centers of the country. The population growth rate of Johor Bahru is among the highest in Southeast Asia. Furthermore; the city is part of the Sijori Growth Triangle, which has recorded one of the highest growths in Southeast Asia over the last couple of years.