September 12, 2024 | Benar News |
Longan, a prized Thai tropical fruit, faces challenges due to over-reliance on the Chinese market, which accounts for 95% of its exports. In 2023, longan exports to China were valued at $400 million. Farmers like Niwat Kantawong express concern about Chinese merchants controlling prices and market conditions, often leading to significant financial instability for growers.
While the Thai longan industry is the largest in the world, the increasing influence of Chinese middlemen has diminished local farmers' bargaining power. Research indicates that since around 2017, farmers have become increasingly dependent on these middlemen, who can dictate prices and quality standards, leaving farmers with little recourse.
Farmers are also burdened by debt and unpredictable income, which discourages younger generations from entering the industry. As Thailand’s main competitor, Cambodia, gains market share, the Thai government is encouraged to seek new markets and improve product quality to maintain competitiveness.
To address these challenges, proposals have been made for diversifying markets and exploring innovative processing methods. Research suggests that expanding into value-added products, such as longan-based spirits or beverages, could safeguard the future of the industry. As the market landscape shifts, the longan sector must adapt to ensure its sustainability and profitability.