Below you will find our most Frequently Asked Questions about our Musang King Durian Plantation Ownership Opportunity. If you have any questions that are not listed below, please do not hesitate to contact us.
Species: Malaysian Musang King Durian
Q: Who is Durian Harvests?
Headquartered in Kuala Lumpur, Malaysia , MK Durian Harvests Sdn. Bhd. “Durian Harvests” is a subsidiary of the Plantations International Group of Companies that specializes in growing the Musang King Durian on its plantations in Johor, Malaysia. The Company’s primary focus is on supplying the highly sought after Malaysian Musang King Durian to China, Hong Kong and Singapore, the world’s fastest growing Durian markets.
Durian Harvests’ mission is to become the leading provider and operator of Durian plantations globally – from plantation development and management, through to end product manufacturing. This includes producing Durian in raw form and processing it into a variety of end products including foods products like ice creams, snacks and beverages such as coffee, tea and milk.
Q: What is Durian fruit?
Durian 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. Please Watch the Below Video for an overview of our plantation ownership program and the Musang King Durian market.
Q: What is the global demand for Durian and Durian products?
The demand for raw Durian (fresh, frozen, paste and pulp) has a global retail value of over 15 USD Billion Annually, with its value expected to conservatively grow to more than 25 USD Billion by 2030. The market is now driven by China’s rapidly increasing demand, with large F&B brands such as McDonalds, Pizza Hut, KFC, Nestle and Starbucks all introducing Durian infused products to capture client demand.
Durian products typically fall into 4 key market segments: Raw Durian Fruit, Desserts, Snacks and Beverages.
- Raw Durian Fruit is comprised of fresh, frozen and dry durian
- Dessert products include ice cream, cake, jams and other pastries
- Snacks include chips, crackers and confections such as candies
- Beverages 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
Click Here to download our full Durian Global Market Report for 2018.
Q: What is Musang King Durian?
Malaysia’s Musang King Durian, also known as Mao Shan Wang or D197, is Asia’s most sought after and expensive Durian variety. Due to its creamy texture and delicious bitter-sweet flavour, demand for the Musang King is so immense that it has resulted in a huge requirements for new Musang King Durian plantation producers in Malaysia.
Due to low supply and rapidly rising demand from China, Musang King prices are skyrocketing, resulting in prices reaching over 25 USD/KG in Singapore to a staggering 120 USD/KG in China!
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 including the Shangri-La have all begun offering durian travel and dining packages to meet the incredible rising demand.
Q: What is the global supply of Musang King Durian?
The demand for the Musang King Durian is continuously rising while the market is facing a growing and chronic supply shortage. As China’s consumption increases so will the need for further Musang King supplies. Existing Musang King supply is so low it can only meet 3% of global demand.
Additional supply of Musang King is immediately needed in order to meet rising global demand with Durian Harvests ideally positioned to do so. Currently their are only about 500,000 Musang King Durian trees in all of Malaysia.
Q: What is the purchase price and what minimum harvest returns can I expect?
10 Musang King Durian Tree Plantation Ownership Package has a purchase price of USD 32,800, Harvests occur annually with total net returns of USD 130,252 expected over a fully 20 year harvest cycle. This represents an average annual return of 19.86% or average annual harvest returns of USD 6,513.
NOTE: The above 19.86% annualized return is based on a minimum guaranteed Musang King Durian price of 10 USD/KG . You will however receive the market price for all your fruit, if that is larger than the minimum guaranteed price.
Q: What is the current market price per KG fro Musang king Durian?
The current retail market price in Singapore is 25 USD/KG and ranges up to 120 USD/KG in China. Click Here to download the Musang King harvest returns comparison chart.
Q: What is the minimum guaranteed price per Kg.?
The above 19.86% annualized return is based on a minimum guaranteed Musang King Durian price of 10 USD/KG . You will however receive the above market price for all your fruit, if that is larger than the minimum guaranteed price.
Q: How many Kilos does each Musang King fruit weigh? and how many kilogrammes can I expect on a per tree basis?
Each of your Musang King Durian trees is expected to produce fruit that weigh between 2-3 kilogrammes. The actual weight however will only be known when harvested as trees are growing living, biological and constantly growing organisms.
Durian Harvests projection is below this, at 1.5 kilogrammes, in order to be conservative. This means that your returns will be even larger if they they weigh between the expected average range of 2-3 kilogrammes.
Average Weight Range: 2-3 Kg. per fruit
Conservative Projection: 1.5 Kg. per fruit
Q: This sounds amazing, but how can i verify the demand and the prices of the Musang King on my own?
There are countless of publicly available online sources confirming prices ranging between 25-120 USD/KG. Below are a few for your reference. Please take a few minutes to review them.
Q: How many Musang King Durian trees are you offering?
Yes, out of the 11,800 Musang King trees Durian Harvests has planned, only 500 are going out for retail sale, the remainder 11,300 trees will remain exclusively as private company stock and will not be offered, these trees will be offered on a first come first served basis.
Q: What exact documentation will I receive to document the purchase of my trees?
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.
Q: How long is my sublease for?
Your sublease is for maximum of 20 years, non renewable.
Q: Will I receive annual harvests?
Yes, you will receive annual harvests starting from your second year from intercropping all the way upto year 20.
Q: Where exactly are my Musang King Durian trees located?
Your Musang King plantation is located in the the town of Kulai in 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. Click Here to learn more about Johor.
Q: Can I visit my plantation? I would really like to see it.
Yes! In fact, we very highly encourage you to visit your plantation and see your Musang King Durian trees. Just let us know of your desired visitation dates and we will make complimentary hotel arrangements for you and one guest at the Double Tree Hilton in Johor Bahru (14 days’ notice is required) .
Q: What if my Musang King Durian trees are destroyed or something happens to them?
Firstly, due to the diligence and expertise of the forestry management team, this is highly unlikely. To date we have had no instance of this. Nonetheless, Durian Harvests provides all clients with a Replacement Warranty, which fully guarantees that should any of your trees die or become severely damaged due to the below noted risks; they will be immediately replaced or replanted at no additional cost to you, thus guaranteeing you a 100% harvest. The 100% Replacement Warranty includes the following risks:
• Lightning Damage
• Pests & Disease
• Wild Animal Damage
• Theft & Vandalism
All Durian trees are fully covered from the above risk events. Should any of these events occur, all of the impacted trees will be replaced and/or replanted with our buffer stock. In order to mitigate risk factors, rigorous assessment and due diligence of plantation sites are conducted annually. Each plantation is irrigated and has 24 hours a day security and an on duty plantation manager.
Q: How do I know how much Durian fruit is produced from my trees?
All plantation management duties are carefully recorded. Each individual tree is bar coded and has a unique identification number, allowing us to document the trees diameter size throughout its growth cycle. Also, Durian Harvests carefully records the exact amount and weight of Durian fruit harvested per tree. In addition, each client will receive a harvest statement certified by Durian Harvests indicating the total amount of harvested Durian fruit and their respective weight.
Q: Are there any management or other fees payable??
Our success is tied to yours. Durian Harvests deducts a 30% harvest cost and sales fee from your gross harvest proceeds. This fee includes all costs associated with the management of you trees and the harvest and sale of your Musang King Durian fruit.
Q: Are there any additional fees or management charges?
No, we only get a 30% harvest cost and sales fee upon successful sales of your Musang King Durian fruit.
Q: In which currency and how are harvest proceeds paid?
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 USD, unless you request otherwise, to the bank account provided. If you request any other currency besides USD, currency conversion fees may apply. Bank charges, fees and related expenses, if any, are to be borne by you.
Q: What is banana intercropping?
Banana plants are planted alongside your Musang King Durian trees, which is also known as intercropping, to provide you with additional returns starting at only the second year of your purchase. Durian Harvests aims to maximise your returns as much as possible and intercropping allows us to use available land to boost returns.
Also bananas introduce vital nitrogen to the soil which helps promote growth for your Musang King Durian trees. Durian Harvests offers a guaranteed price of 0.25 USD/KG for your banana intercrops.
Q: Why are you offering this plantation opportunity to third parties?
The company has made a strategic decision to offer third parties this unique ownership opportunity in order to accelerate our corporate growth, without the need for bank debt. We are willing to sacrifice a portion of proceeds in order to gain this financial independence.
The Musang King Durian market is primed for significant growth with demand skyrocketing and prices already at record high levels. The additional cash flow received by selling to third parties allows the company to expand into a multitude of different strategically targeted valued added areas. The company plans to move up the value chain in order to capture additional profitability from higher margin activities. Doing so without debt is expected to result in more profitability in the long term.
Q: Can I transfer or sell my Musang King Durian trees to a third party?
Yes, your trees are your exclusive private property and you may sell or transfer them to anyone at any time without restrictions. All transfers are subject to a USD 5 per tree administration fee and must be paid at the time of your transfer request.
Q: What happens to my Musang King Durian trees if I die or I become incapacitated?
Your trees are part of your estate and can be passed on to whoever you choose, just like your home. In the event of death or incapacitation, the above mentioned administration fee of USD 5 per tree will be fully waived.