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Thailand Places Aromatic Coconut Under Fruit Board Oversight as Output and Price Risks Grow

Thailand is bringing aromatic coconut under the Fruit Board’s oversight after production reached 731,094 tonnes in 2568 and prices continued to fluctuate. Authorities plan to improve crop forecasts and coordinate production and marketing across a sector that exports 80% of its output.

Thailand Places Aromatic Coconut Under Fruit Board Oversight as Output and Price Risks Grow

Fruit Board takes responsibility for a major export crop

Thailand has placed aromatic coconut under the supervision of its Fruit Development and Management Committee, known as the Fruit Board, as rapidly expanding production increases the risk of oversupply and price volatility. Bangkok Biz News reported that the board approved the change at meeting 2/2569 and called for a working group to study stability across the entire aromatic coconut supply chain.

The decision covers one of Thailand’s five most important fruit crops and a high-value export product. The country has 234,745 rai planted with aromatic coconut, including 188,430 rai currently bearing fruit, according to Bangkok Biz News. The industry supports 15,816 farming households. More than two-thirds of the productive area is concentrated in four provinces: Ratchaburi, Samut Sakhon, Nakhon Pathom and Samut Songkhram.

Record supply raises the need for better forecasts

Thailand produced 731,094 tonnes of aromatic coconut in 2568, exceeding output in previous years. Around 80% of production was exported because of the fruit’s distinctive taste and aroma and strong demand in overseas markets. Fresh coconut exports generated 6.462 billion baht, underlining the crop’s importance to growers, processors, exporters and the national agricultural economy.

Higher volumes have also created a more difficult balancing problem. Anjali Suwajittanon, director-general of the Department of Agricultural Extension, said fast production growth, together with changing production and marketing practices, had contributed to persistent price fluctuations. A crop concentrated in a small number of interconnected production areas can experience a sharp market impact when harvesting volumes rise faster than processing or export demand.

Officials are being trained to manage the full chain

The Department of Agricultural Extension has launched a training project for officials responsible for aromatic coconut production. The program has two priorities: preparing staff to operate within the Fruit Board framework and establishing systematic planning, knowledge exchange and networks among officials in the main growing regions and related agencies. Staff will be trained to manage production data, assess conditions and prepare advance crop forecasts.

The government views forecast accuracy as its principal tool for planning marketing and acting before excess supply reaches the market. Field officers are expected to move beyond general cultivation advice and manage the commodity across its supply chain. Implementation will involve the Department of Agricultural Extension, Department of Agriculture, Office of Agricultural Economics and other partner bodies. The immediate policy emphasis is therefore on information and coordination rather than a disclosed production quota, purchasing program or export target. For market participants, the effectiveness of the plan will depend on whether forecasts arrive early enough and are sufficiently precise to guide harvesting, processing capacity and sales.

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