Businesses face difficulties in building frozen durian warehouses for export

Among the commodity groups that have just signed a protocol between Vietnam and China, frozen durian is considered the product with the largest export value, contributing significantly to agricultural export turnover. However, the implementation of durian freezing warehouses by enterprises in Dak Lak is facing some difficulties and obstacles.

Inside a durian freezer warehouse of a business in Krong Pak district, Dak Lak province. Photo: Bao Trung
Many difficulties and problems
A representative of Thao Cuong Durian Purchasing and Distribution Company Limited (located in Krong Pac district, Dak Lak province) shared: "Our company has been operating in the field of purchasing and distributing durian for more than 5 years. According to the law of market development, we have invested about 3 billion VND in a frozen warehouse system to meet the requirements of our partners to export to the Chinese market".
However, according to the representative of this company, investing in this frozen warehouse is not simple, in addition to experience and capital, the biggest obstacle for the company is the power source. "High electricity costs and expensive transmission systems make it difficult for many new entrants to survive" - this representative said.
This same person said that the company is storing about 1 container of frozen durian in the warehouse, with about 280,000 VND/kg peeled to send to partners. This quantity of durian is a strategic source of goods for businesses, with more stable profits than fresh fruit and easy to transport.
To enter the frozen durian industry, businesses must have a stable output, study current regulations to invest in warehouses according to standards, as well as guidance documents from competent authorities. Mr. Vu Duc Con - Chairman of the Dak Lak Durian Association - expressed his opinion that recently, many businesses in the province have deployed frozen durian warehouses to export durian to the Chinese market with partners. In general, during the implementation process, many units are still facing difficulties and problems arising related to land procedures and construction permits.
Some units spend a lot of money to build a cold storage warehouse but do not have a construction permit or are stuck in planning and land use conversion. Secondly, the power source connecting from residential areas to the cold storage is not enough, so businesses have to connect and upgrade the power grid system, which is very expensive.
Expectations to increase agricultural product value
According to the Department of Agriculture and Rural Development of Dak Lak province, by 2024, the province's durian area will reach about 33,000 hectares, with an output of nearly 300,000 tons. The province has 23 packaging facilities and 68 growing areas that have been granted codes to serve the export of fresh durian to the Chinese market.
Currently, the Ministry of Agriculture and Rural Development of Vietnam and the General Department of Customs of China have signed a Protocol on requirements for inspection, plant quarantine and food safety for frozen durian from Vietnam exported to China. Mr. Nguyen Van Ha - Deputy Director of the Department of Agriculture and Rural Development of Dak Lak province informed that regarding preparations for the export of frozen durian, after the protocol is signed between Vietnam and China, the province will wait for instructions from the Ministry of Agriculture and Rural Development to implement this method appropriately.
The unit has approached businesses, ready to invest in frozen warehouses, according to the common standards of the parties involved as well as the partners to export frozen durian in 2025.
Mr. Nguyen Hoai Duong - Director of the Department of Agriculture and Rural Development of Dak Lak province - said that when frozen durian is officially exported to the Chinese market, it will help diversify the processing form, reduce the pressure of harvest season for farmers as well as businesses and increase the value of the industry. "The early implementation of frozen durian by businesses will open up great opportunities for sustainable development in the coming years" - Mr. Duong said.
Source: Lao Dong Newspaper