Bangkok: Cooperative networks are lending their support to an initiative by Supajee Suthamphan to establish a central processing plant for fragrant coconuts to combat price manipulation. This move is aimed at stabilizing the coconut market and providing fairer prices for farmers.
According to Thai News Agency, the Director-General of the Department of Cooperative Promotion revealed that numerous agricultural cooperative networks have welcomed the government's proposal to create centralized coconut processing plants. This initiative addresses the issue of low coconut prices, with cooperatives ready to collect produce and send it to these central plants. The goal is to continue developing processing techniques that add value to substandard coconuts. Nationwide, cooperative networks have purchased over 2.3 million coconuts, aiding in price stabilization in regions showing signs of recovery.
Mr. Nirun Multhida, Director-General of the Department of Cooperative Promotion, discussed a meeting led by Commerce Minister Supajee Suthamphan alongside executives from the Ministry of Commerce and the Ministry of Agriculture and Cooperatives on March 2, 2026. The meeting aimed to integrate efforts to address the expected influx of eastern Thai fruits into the market by mid-April and to explore solutions for the low prices of fragrant coconuts. A proposal was made to establish a "central purchasing center" to replace Chinese buyers, who have been criticized for driving down coconut prices to around 2 baht per fruit.
The Director-General emphasized that the proposed central purchasing center is a fitting solution, considering that cooperatives are more adept at production and collection than marketing. They are prepared to act as an upstream mechanism, collecting produce from members and delivering it to central wholesalers or private sector entities skilled in marketing.
Mr. Nirun clarified allegations of cooperatives colluding with Chinese middlemen in the coconut trade, stating that this is unlikely. Cooperatives collect produce from their members and sell it to buyers, whether Thai or Chinese, as long as the price is favorable.
In response to the low price of fragrant coconuts, the Department of Cooperative Promotion coordinated with cooperative networks nationwide to purchase produce above the market rate. This effort commenced on February 4, 2026, at the Ban Phaeo Agricultural Cooperative Limited in Samut Sakhon Province. The Kaset Wisai Agricultural Cooperative Limited in Roi Et Province, along with its northeastern network, purchased 50,000 coconuts at 5 baht each, while the local market price was only 2 baht per coconut.
Cooperative networks in several provinces have since joined forces to continuously purchase coconuts from producers in Ratchaburi, Samut Sakhon, and Samut Songkhram provinces, expanding to include Songkhla province. Over 2.3 million coconuts have been distributed to end markets through these networks, valued at over 11.86 million baht, leading to improved coconut prices in these areas.
Additionally, the Department of Cooperative Promotion supports cooperatives in enhancing the value of their produce through processing by allocating budgets for marketing equipment. For example, in fiscal year 2024, they provided freezers to the Prasan Kasikij Agricultural Cooperative Limited in Ban Phaeo District, Samut Sakhon Province, for storing coconut blossom nectar, allowing it to be processed into coconut sugar, coconut syrup, and other products.
Mr. Somkiat Praphrutkit, Chairman of the Board of Directors of Wat Phleng Agricultural Cooperative Limited in Ratchaburi Province, expressed agreement with establishing a central coconut processing plant. This initiative aims to create fairer prices for farmers, as current coconut prices are primarily determined by processing plants. The cooperative acts as an intermediary between members and the plants, ensuring timely payments to farmers.
Currently, the Wat Phleng Cooperative provides an average of 20,000-30,000 coconuts daily to wholesalers at approximately 5-6 baht per coconut. Only coconuts meeting market size demands are selected, while substandard ones are processed into bottled coconut water for added value.
Meanwhile, Mr. Chamroon Niltao, chairman of the Ban Rang Si Mok Agricultural Cooperative Limited in Damnoen Sawat District, Ratchaburi Province, voiced support for the centralized coconut packing house concept. However, he acknowledged the substantial investment required and market challenges, as most coconut production is exported through Chinese packing house networks.
Mr. Chamroon noted that over 230 Chinese-owned coconut packing houses operate in the Damnoen Saduak area. Currently, the price for mixed-grade coconuts is around 4 baht per fruit, lower than the production cost of 5-6 baht. However, most farmers own trucks, increasing transportation and labor costs for packing houses. Combining all income, farmers receive approximately 7-8 baht per fruit.
'Many farmers still rely on Chinese middlemen due to long-standing business relationships spanning 10-20 years,' said Mr. Chamroon.