Thailand's Coconut Wars - Asia Insight

Thailand's coconut farmers are on the front lines of an economic war. As global trends towards vegan lifestyles and healthy eating continue to bolster growth in the industry, they are being caught up in the scramble for market share. Producers in different countries are vying for a larger slice of the market, and there's been a sharp rise in wholesalers seeking coconuts at the lowest possible cost. By early 2026, the price had fallen to 6 US cents per coconut, a tenth of its peak level. In central Thailand, it costs around 15 cents to grow a coconut. With every sale, the farmers make a loss. Coconuts are a crucial export. The Thai government views this as a major crisis, with the potential to cause significant economic damage. Amid this turmoil, one farmer is continuing to turn a profit. This former IT engineer has poured all of his skill into coconuts. Some farmers are uniting with others to build alliances and stay ahead of the competition. Coconut farming is diverging from the traditional model. We report from the front lines of Thailand's coconut wars. In Southeast Asia, Thailand is a major economic power. Locals have been consuming coconuts for generations. Tourists enjoy them too. The nation's supermarkets offer stacks of fresh coconuts. And coconut water is sold in many forms. It's rich in minerals with natural sugars. The fibrous white flesh is also full of nutrients. In Thai cuisine, it's used for flavor and texture. Coconut milk extracted from the flesh is a key ingredient. Here's a classic dish, Thai green curry. Coconut milk gives it a smooth richness, balancing out the spicy flavor. This richness goes well with ice cream too, and a wide variety of other desserts. Coconut is also used to make everything from cooking oil to cosmetics. The market has expanded to Western countries, where it was once far less familiar. In 2015, the global coconut industry was worth $28.3 billion. That grew to $35.6 billion in 2025. And over the next decade, it's predicted to grow to $51.7 billion. Central Thailand is a major coconut growing region. This is Ratchaburi province, a key production area. It lies along the lower reaches of a major river flowing from the mountainous north. Fertile soil carried downstream makes the land ideal for agriculture. Coconut groves are scattered throughout. The trees stand on distinctive rows of raised earth, separated by channels of water. Their fruit is harvested throughout the year. The region produces a special variety of coconut called Nam Hom. The name literally means fragrant water, as the water from these coconuts has a refined aroma and a gentle sweetness. It had long commanded a high price. However, sale prices have fallen below production costs. This is having a major impact on the livelihoods of the farmers. Ekasak Pyonyu owns 150 coconut trees. With coconut prices as low as six cents, his business is increasingly losing money, and he's being forced to draw on his savings. The change can be partly explained by an imbalance between supply and demand. The price paid to farmers began rising in 2016. It stalled during the COVID-19 pandemic, but soon resumed its upward trend. This encouraged many other farmers to begin growing coconuts, creating an excess in supply that caused prices to weaken. Then came a movement that sent prices into freefall. China was the primary consumer of Thai coconuts, but in August 2024, it announced an agreement to import coconuts from Vietnam. Producers were left with excess stock as wholesalers became reluctant to buy. Brokers began attempting to take advantage of the situation. In March 2026, the Thai government released a statement. From upstream to downstream, foreign investors completely control the Nam Hong coconut supply chain. They lower the price paid to farmers and send the profits abroad. To protect farmers, the government began cracking down on unscrupulous businesses. Chinese traders used Thai names to illegally register companies and buy coconuts at extremely low prices. Multiple businesses were raided. Recently, Ekasak has been in poor health. He can't afford to hire staff, so he relies entirely on his son. His son is currently watering the trees. His name is Suraset. On this farm, everything is done according to Ekasak's experience and intuition, from the amount of water and fertilizer to the timing of their application and the harvest season. Suraset is currently attempting to absorb that wisdom. There's another challenging task. The farm needs to replant many of its coconut trees. Once they've passed 40 years of age, yields begin to fall. Before that happens, the coconut trees need to be replanted. A phased replanting is essential, but there's no prospect of securing the necessary funds. The farm's fate rests on Suraset's shoulders, but the path forward is unclear. Despite falling prices, some producers are boosting productivity and weathering the storm. This 0.8 hectare farm in Ratchapuri was started in 2012 by a local, Karapong Wong Watanagi. Previously, he worked in Bangkok as a head of information security for a Japanese company. He uses that experience to run the farm. The data is sent to Karapong's phone. Other sensors measure soil moisture. If the reading exceeds the blue mark, there's too much. If it's below the yellow mark, there's too little. Water is applied automatically. The volume and timing are determined by the data. Thanks to modern technology, the business spends around $6,000 fewer dollars a year than farms of similar size. Fertilizer is applied at the optimal time, promoting growth. The coconuts can be harvested once a week, much more often than on other farms. The business's main product is coconut water. Karapong and his wife package it themselves. Using new technology, they're able to minimize labor costs. The product has a consistent quality and solid reputation. It's gradually attracting more and more customers. Karapong quit the Japanese company to try farming in his hometown. From the very beginning, he drew on his IT background to take a unique approach. First, he conducted a geological survey of the family land. He asked a professor from an agricultural university to help him create the ideal environment for coconuts. Then he designed the layout, maximizing the yield within a limited amount of space. Generally, coconut trees are planted in rows. They are spaced six meters apart so their leaves don't touch. This zigzag pattern maintains that spacing, but allows room for 10% more trees. These efforts allow Karapong to turn a profit, even as the coconut wars rage on. The Thai government has launched new measures to support the nation's coconut farmers. At this exhibition of Thai products, there's a central section for those labeled GI, geographical indication. Governments of different countries grant GI certification to products from particular regions with well-established quality and reputation. It's a form of branding designed to make these products stand out. The Thai government has given GI certification to Nam Hom coconuts from Ratchaburi and three neighboring provinces. After a successful approach by the Thai government, the European Union also registered Ratchaburi Nam Hom coconuts under their own GI system. This gave Thailand's Ministry of Commerce a huge boost of confidence. This farm is looking to go beyond GI certification and to make its products even more appealing. It's doing this through a rigorous adherence to organic farming. Farm owner Nuanloa Tokitigung. He's a certified GI farmer, and he's been doing this for a long time. Every morning, she works with her employees to collect eggs from around 40 ducks and other birds. During the day, the birds roam freely throughout the farm. Their droppings act as daily fertilizer for the coconut trees. The farm occupies 1.6 hectares of land. Nuanloa purchased it 10 years ago. Floating in the irrigation channels is Azolla, an aquatic fern. It fixes nitrogen, which is essential for plant growth. When sprinkled on the crops, the fern acts as an excellent fertilizer. Organic farming tends to produce a lower yield than conventional methods. But one key to solving that problem lives inside this box. These bees promote pollination, increasing the yield by around 10%. There are about 50 hives scattered throughout the grove. Nuanloa founded her company in 2017. She studied business at university. After graduating, she worked for an airline, but always dreamed of starting her own enterprise. To build her skills, she took on a role at an international beverage company. There, her attention was drawn by the coconut industry. The business has 20 staff, spread across sales, marketing and other teams. They work hard on branding, seeking to build awareness of the health benefits and exceptional flavor of their organic Nam Hom coconuts. The company established its own distribution network that uses refrigerated trucks to maintain product quality. This allows it to sell directly to consumers and stay largely unaffected by shifting market prices. It's built a reputation and now sells to high-end supermarkets and fine dining restaurants. A cafe in an affluent neighborhood of Bangkok, it uses Nuanloa's coconuts. In stylish establishments like this, mixing coffee with coconut water is a growing trend. The sweetness of the coconut harmonizes perfectly with the bitter coffee. It's a combination said to relieve fatigue. Nuanloa also works with other local farmers, encouraging them to try organic methods. She buys the resulting coconuts and distributes them using her network. To maintain quality, she makes regular visits to each of the farms. Her purchase price is consistent and higher than the market average. The fund gives coconut farmers a sense of security. Nuanloa sees her fellow producers as valuable allies. The company now works with 31 partners. Every day, they generate a total of two tons of discarded coconut shells. These are recycled coconuts. The shells are heated for six hours at over 500 degrees Celsius. This turns the fibrous remains into charcoal. This charcoal has an extremely porous structure. Its microscopic pores are excellent at retaining water. Crushed into fine particles, it becomes an environmentally friendly soil conditioner that helps create healthy and fertile soil. Nuanloa shares the material with her partners. This helps them to grow high-quality coconuts. Today, a group of around 40 is visiting Nuanloa's farm. They are farmers from another province, around 100 kilometers away. They hope the knowledge they acquire will reinvigorate their struggling businesses. On occasions like this, and at many other events, Nuanloa shares her expertise. She gives a tour of the farm and explains the benefits of organic farming. This is the weak spot of organic farming. I can't figure it out. It's hard. Okay, I'll tell you. But one day, COVID-19 will hit again. War will break out again. We have to adjust our living conditions. Are you having fun? Are you having fun today? Yes! We have to adjust our living conditions to suit our needs. We are working on it. Tomorrow, we will adjust the area to be an organic garden. The real goal is to give the farm to others, to teach others, but not to do our own business. Ten years after purchasing the farm, it's time to replant the trees. For the very first time, Nuanloa plants saplings with her own two hands. Farmers are striving to emerge from the coconut roars not as victims, but winners. Amid the turmoil of this growing market, their struggle continues.