We live in a time where investment opportunities are everywhere. Whether it is traditional
investing such as stocks, bonds and gold or modern investing such as cryptocurrencies and
NFTs. However, one area of investment that has been under the radar until recently is agriculture
investment, specifically durian investment.
Agroforestry Group (AFG) a well-known durian grower has helped us compile a list of frequently
asked questions from investors regarding the durian industry to offer some clarity on this
lucrative investment opportunity.
Why should I invest in durian?
The durian, which is native to South-East Asia, has become one of the most expensive fruits
globally. Currently, durians are considered one of the most profitable fruits for exporters and
growers, which makes having a share in the profits a worthy investment for any business or
individual. Demand is growing significantly around the world, driven by China. China represents
80% of all durian imports and is breaking import records every year. Just last year alone, China
import a record breaking 77% more durian fruit than in 2020. Durian however is also becoming
more global, with countries like Australia, the UK and the US beginning to import them too. Since
2019 durian imports by Australia are up 347%, the UK up 145% and the US 85%.
What kind of returns should I expect?
This depends on a variety of factors such as which varieties of durian are being grown, the
location, and export markets. There are numerous opportunities available with the minimum one
should expect 15% in annualized returns. Returns are higher for commercial sized businesses
such as ourselves compared to smaller individuals.
How are profits generated?
Profits are generated from the sale of fruits. Durian trees only start to fruit after 5 years with the
amount of fruits harvested increasing year by year. The more mature a tree is the more fruit and
better quality fruit it produces. A word of advice, any company claiming that they can provide
durian harvests immediately or less than 5 years should be questioned. Durian trees need time to
How do I start investing in durian?
The most profitable and convenient way would be to find a company that allows clients to partner
with them. These companies are typically private, and have been in the business for a long time.
Other than that, one can start their own durian farm however this is not advisable as it is very time
consuming and much more expensive. Plus, you need a lot of scale in order to export durian fruit.
We have seen many people attempt to set up durian businesses themselves and failed because
the domestic price is far lower than what it is sold internationally. To export you need size, strong
operations, infrastructure and government licensing.
How safe is durian investment?
Durian investment by its nature is safe as you own something physical you can touch and see. As
a company, we know that durian trees will harvest fruits and we know the market is profitable and
growing. Individual investors or companies just getting into the durian industry however must be
very careful. Companies such as ourselves who are experienced and have access to resources
others do not. If someone is looking to set up their own farms they must consider all the costs
properly and also plan for how they intend to sell the fruit. If an investor is looking to do business
with a specific company, we advise them to check with the Companies Commission of Malaysia
(SSM) to make sure they are registered, as well as visit their durian plantations and meet the
company directly. Recently we have seen a number of durian scams across Malaysia due to their
profitable nature of the industry.
As for Agroforestry Group, any worries that Agroforestry Group is a scam can be brushed away
with their status with the Companies Commission of Malaysia (SSM).
Visit Agroforestry Group’s website to learn more about durian.