Hernan Corp Targets 30,000-tonne Durian Export To China In 5 Years

BANGKOK, May 30 (Bernama) -- Hernan Corporation Sdn Bhd, Malaysia’s largest cold chain manufacturer and a leading exporter of Malaysian durians and durian-inspired products, aims to export 30,000 tonnes of durian to China over the next five years.

Its commercial director Yang Hon Shung said the demand for Malaysian durians in China, particularly Musang King and Black Thorn varieties, continues to rise. 

"Last year alone, China imported 1.3 million tonnes of durian fruit, with demand expected to grow annually by five to six per cent.

"In line with our expansion plan, we have set our target to export 30,000 tonnes of durian in the next five years to meet the demand in China," he told Bernama during the Thaifex-Anuga Asia 2024 event at Impact Arena, here.

Yang said the company plans to invest RM30 million to RM50 million over the next two to three years to construct two additional factories in Malaysia.

"Currently, we operate four plants in Malaysia, located at Ara Damansara, Bentong, Tangkak and Puncak Alam. 

"In the next three years, we aim to establish two more durian processing facilities to meet the escalating demand," he added, noting that 95 per cent of the group's durian production is earmarked for export, with the remainder allocated for domestic consumption.

Regarding export limitations, Yang mentioned that Malaysia currently only permits the export of frozen durians, whereas China primarily imports from Thailand and Vietnam. 

However, in light of the 50th anniversary of diplomatic relations with China this year, he expressed hope that Malaysian fresh durians would gain export approval by year-end. 

“Based on the current market share of fresh and frozen imported durian in China, Thailand holds over 50 per cent, Vietnam over 40 per cent, and Malaysia only about 4 per cent.

“We hope that once we are allowed to export fresh durian, our export volume will increase," he said.

Yang also highlighted the company's growth trajectory since its establishment by Datuk Anna Teo in 1996.

With an initial workforce of around 50 employees, Hernan Corporation now employs approximately 200 staff, achieving a revenue of RM120 million last year. 

"We are grateful for the support of the Malaysian government, especially from MITI, Matrade, MIDA, and other related government agencies, which have contributed to our success," he said.

Additionally, Yang revealed the group's expansion plans into the Indian and Indonesian markets for both durians and durian-inspired products. 

"India is starting to consume a lot of durian, especially from Thailand, whereas Indonesia also loves durian, and both are highly populated countries. These are the markets that we hope to enter in the next five years," he said.

Currently, Hernan Corp exports to 22 countries, including Australia, China (including Hong Kong and Macau), Taiwan, Singapore, Vietnam, the European Union, New Zealand, Canada, the United States, and various Middle Eastern countries.

-- BERNAMA