"Price of Thai coconuts is rising"

Coconuts are an important product in the Chinese market. Even when the weather is gradually growing colder, Chinese consumers still show a strong demand for coconuts.

The coconut market conditions were quite unstable and unpredictable in the last two months. The price rapidly increased. Ms. Yu Boyang of Shenzhen Maoxiong Industry Co., Ltd. recently shared her view on the current conditions in the Chinese coconut market:

"Rainfall is a major influence on the coconut production volume. More rainfall means more coconuts. However, the weather conditions in Thailand have been quite hot and dry this season. There was virtually no heavy rainfall in the period until May. Many production areas entered the warm season in late March. Some production areas enjoyed a little bit of rain, but most of the production areas remained dry. Irrigation canals run between the coconut trees to water them, but during this season the irrigation canals quickly ran dry. The coconuts were unable to grow in a regular manner."

"The price of coconuts was 9 Thai baht [0.30 USD] per coconut around this time last year, but the current cost price is already around 30 Thai baht [0.99 USD]. The current price is more than triple the price of last year. It is difficult to predict when the price will come down again. The price is likely to recover only after the production volume grows in April."

Maoxiong Industry has subsidiary companies in Thailand that purchase and process the coconuts before they are exported to China. However, as Ms. Yu explained, coconut supply is difficult to secure at the moment. Buyers are competing over limited supply. "Coconut supply is extremely difficult to find right now. Coconuts were quite popular in 2019, so a lot of traders entered the coconut business. Although Vietnam and the Philippines also export coconuts to China, the market is still dominated by Thailand. Our supply from Thailand is quite regular around 5 shipping containers per week."

In addition to coconuts, Maoxiong Industry also exports fresh vegetables to China and other countries. The company was established in 1997. Maoxiong Industry integrates production, processing, storage, and distribution in the green food industry. The company mainly delivers directly from farm to end-market. Plantation is adjusted based on the volume of orders.

"Maoxiong Industry has 9 overseas branch offices in Hong Kong, Malaysia, Thailand, Indonesia, and Singapore. Our products are sold as far as Southeast Asia, the USA, Canada, and Australia. In the Chinese market we sell our products through large-scale supermarkets such as Carrefour, CR Vanguard, Wal-Mart, and Hema, as well as a number of fruit chain stores and restaurants. At the same time, we also work hard to expand our market and establish brand stores and alliance stores. We want to make our marketing strategy concrete and speed up the journey of fruit and vegetables from farm to table."

Maoxiong Industry will participate in the Berlin Fruit Logistica on February 5-7 to showcase their variety of mushrooms and vegetables. "We hope to find new partners to explore business opportunities. New clients and old customers are all welcome to visit our company stand in Hall 5.2 at booth B-05."

For more information:

Ms. Yu Boyang

Shenzhen Maoxiong Industry Co., Ltd.

E-mail: buyer002@mx-greenstuff.com  

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