KUALA LUMPUR (Nov 15): PLS Plantations Bhd has inked an exclusive distributorship with China’s agri-product trader China Oil and Foodstuffs Corporation (COFCO) in relation to exporting Malaysia’s durian to China.

In a statement released on Tuesday (Nov 15), PLS Plantations said its trading and export subsidiary Dulai Fruits Enterprise Sdn Bhd had inked an export and exclusive distribution agreement with COFCO’s import and distribution subsidiary in China, COFCO Food Import Co Ltd (COFCO Food).

“With this exclusive distribution partnership, both PLS and COFCO aim to achieve an annual growth rate of 30% (annual import volume of 200 million yuan) in all types of durian imported from Malaysia over the next three years,” said PLS Plantations.

COFCO Food vice general manager Wu Yiran said the demand for durian in China has been growing over the years. In a span of four years between 2017 and 2020, China’s annual import value of fresh durian had increased more than threefold.

“In fact, the General Administration of Customs saw China importing 822 million kilogrammes of durian in 2021, which translates into an import value of US$4.2 billion. With local demand for fresh durian likely to continue increasing, we [are] pleased to finalise this exclusive distributorship agreement. This partnership will ensure a steady supply of fresh, high-quality fruit and products, specifically for unique varieties of durian that can only be grown in Malaysia, such as the Musang King, Red Prawn and D24, to name a few,” she added.

PLS Plantations group CEO Lee Hun Kheng said through COFCO, Malaysia’s durian will be distributed to China’s most populous cities and provinces, reaching a potential audience in Beijing, Shanghai, Guangzhou and Shenzhen.

“We are working hard to ensure that we meet the booming food and durian demand in both China and Malaysia, and are also optimistic that this partnership will be one of the many we will establish, as we continue our expansion into different cash crops,” Lee added.

PLS Plantations’ share price settled unchanged at 80 sen on Tuesday, for a market capitalisation of RM320 million.