Coconut prices in Thailand have declined to as low as 2 baht (US$0.06) per fruit, affecting grower returns across key producing regions. Farmers report that prices have dropped from around 20 baht (US$0.55) before the pandemic to 10 baht (US$0.28), and more recently to 2 baht, with lower-quality fruit selling for 1 baht (US$0.03).
Growers in Songkhla province state that current price levels are below production costs, with some leaving fruit unharvested or considering removing trees. According to producer representatives, the decline is linked to supply chain dynamics, where a limited number of companies control purchasing and exports.
Industry sources indicate that companies linked to Chinese investors dominate parts of the supply chain, including procurement and exports to China. Estimates suggest that six or seven companies manage a large share of the sector, purchasing coconuts at 2 to 5 baht (US$0.06–0.14) and exporting at 35 to 50 baht (US$0.97–1.39) per fruit.
The situation is affecting the aromatic nam hom coconut segment, which is primarily exported to China. The role of local intermediaries has declined, with over 80 per cent of wholesale trade reportedly controlled by external capital.
Production levels have increased in recent years as growers shifted toward coconut cultivation in response to demand for coconut water. Thailand now produces around two million coconuts per day. In 2025, supply increased by over 55 per cent, while export volumes rose by about 9.7 per cent, resulting in a total export value of 6.5 billion baht (US$200 million).
The coconut sector is also affected by input supply constraints, including fertiliser availability linked to disruptions in the Strait of Hormuz. Market conditions are further influenced by supply levels and export demand.
Government measures include purchasing coconuts at 5 baht (US$0.14) per fruit and investigations into purchasing centres. Average prices were 3.20 baht (US$0.09) per coconut in February, compared to 5.75 baht (US$0.16) in December.
According to industry analysis, reducing surplus volumes and supporting downstream processing could support price recovery, with a target of 7.5 baht (US$0.21) per coconut by the third quarter of 2026.
Source: AsiaNews
