October 09, 2025 | Tuoitre News |
Farm-gate prices for aromatic coconuts in Thailand’s Songkhla Province have plummeted to 2–3 baht per fruit, well below the 4–5 baht production cost. With Thailand producing about 500 million coconuts annually, each one-baht drop translates to a staggering 500 million baht (US$15.2 million) in losses. Experts attribute the collapse largely to Vietnam’s rapid expansion in the Chinese market, previously Thailand’s main buyer.
Vietnam’s coconut industry, centered in the Mekong Delta—particularly Vinh Long Province—has grown into one of the world’s top exporters. The sector benefits from modern processing facilities, strong government backing, and its proximity to China. About one-third of Vietnam’s plantations are now organically certified, bolstering its competitiveness. Export earnings surged from US$180 million in 2010 to over US$900 million in 2023, and are projected to reach US$1.15 billion in 2025.
In contrast, Thailand’s coconut sector faces structural challenges such as fragmented smallholder production, inconsistent quality, and weak government coordination. The price slump has forced many farmers in Ratchaburi and Samut Sakhon to abandon their crops. Despite global demand for coconuts and related products—expected to grow from US$3.5 billion in 2023 to US$8.2 billion by 2032—Thai producers risk losing their foothold without urgent reforms and market diversification.
