Fifteen Chinese-run companies and their ten Thai nominees are under investigation by Thai authorities for alleged collusion and other unfair trade practices, including suppressing the prices of coconuts purchased from growers and attempting to monopolise the coconut trade.
Poonpong Naiyanapakorn, director-general of the Business Development Department, said the department has held an emergency meeting with the Cybercrime Investigation Bureau, the Department of Special Investigation (DSI), the Anti-Money Laundering Office, the Revenue Department and the Department of Agriculture to discuss the problem of plunging prices for Nam Hom coconuts and the roles of the 15 Chinese-run companies, located in Bangkok, Ratchaburi, Pathum Thani, Samut Prakan and Samut Sakhon.
Although over-production and a reduction in Chinese imports of coconut from Thailand, as well as competition from other exporters, have contributed to the plunging coconut prices, he pointed out that the problem is further complicated by collusion among the Chinese-run trading firms, which have engaged in every stage of the production and trading processes, from renting land for coconut cultivation, buying from the growers and packaging to exporting to China.
He claimed that the 15 companies, with the help of Thai nominees, have complete control of the coconut trade in Thailand and can dictate the prices, while Thai coconut growers have virtually no bargaining power and barely make a profit.
According to the Department of Business Development Department, 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 to about 800,000 tonnes last year, representing a significant increase. Chinese imports of the Thai coconut, however, dropped from 62% to 48% last year.
Ex-plantation prices range from 4-5 baht per unit, while retail prices in Chinese cities range from 36-53 baht per unit.
Poonpong said initial findings from his department have been submitted to the DSI for a more in-depth investigation aimed at tackling the unfair trade practices.
