Chinese companies are accused of unfair trade practices in the coconut trade in Thailand.
- Fifteen Chinese companies and ten Thai frontmen are the subject of an investigation for collusion and unfair business practices in the coconut trade.
- Authorities suspect these companies’ influencing the prices paid to producers and attempting to monopolize the market.
- According to authorities, these companies would be present at all stages of the chain, from cultivation to l’export to China.
- Thai producers have very little bargaining power and earn limited revenues from their production.
An investigation into a possible monopoly in the coconut trade
Fifteen Chinese companies and their ten Thai frontmen are the subject of an investigation by Thai authorities for alleged collusion and unfair business practices.
Investigators suspect, in particular, price manipulation paid to producers and an attempt to monopolize the coconut trade.
Poonpong Naiyanapakorn, General Director of the Commercial Development Department, said that his department had held an emergency meeting with several government agencies.
Among them were the cybercrime investigation bureau, the special investigations department (DSI), the anti‑money‑laundering bureau, the revenue department and the agriculture department.
This meeting aimed to examine the drop in prices of Nam Hom coconuts and the potential role of 15 Chinese companies located in Bangkok, Ratchaburi, Pathum Thani, Samut Prakan and Samut Sakhon.
Chinese companies involved in the entire production chain
Overproduction, the decline of Chinese imports of Thai coconuts and competition from ’other exporting countries have already contributed to the price drop.
However, he emphasized that the problem is exacerbated by an alleged collusion among Chinese commercial companies.
According to him, these companies are involved in all stages of the production and marketing chain, from leasing land for coconut cultivation to the ’purchase from producers.
They also participate in packaging and exporting to China.
He stated that the 15 companies, with the help of Thai frontmen, largely control the coconut trade in Thailand and are able to dictate its prices.
Under these conditions, Thai producers have very little bargaining power.
According to him, they therefore only achieve very limited profits.
According to the Department of Commercial Development, there are more than 200 coconut packaging facilities, but only 73 of them are voluntarily registered with the Department of Agriculture.
Nam Hom coconut production in 2024 was estimated at 580,000 tonnes, compared with about 800,000 tonnes in 2025, representing a significant increase.
The 2024 harvest had notably been affected by drought and pests.
See: Thai coconuts victims of drought and parasites
Chinese imports of Thai coconuts have nevertheless fallen from 62 % to 48 % last year's.
A spectacular price gap between Thailand and China
The plantation‑origin prices vary between 4 and 5 bahts per nut, while retail prices in Chinese cities reach 36 to 53 bahts per unit.
Mr. Poonpong said that the initial findings of his department had been submitted to the DSI for a more in‑depth investigation aimed at combating unfair trade practices.
See also:
Khanom krok : the famous Thai coconut dessert
Does the Thai coconut industry really mistreat monkeys?
Source: Thai PBS World
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