Community Collection Hubs Target Coconut Glut

Thailand is bolstering its aromatic coconut industry through a comprehensive strategy focused on upgrading the entire supply chain, from farm to market. Deputy Prime Minister and Commerce Minister Suphajee Suthumpun visited a pilot project in Ratchaburi province to assess progress and engage with farmers and entrepreneurs.

The initiative centers on establishing "community collection hubs," such as the Coconut Breeze enterprise in Damnoen Saduak district. These hubs are designed to serve as central points for collecting, grading, processing, and marketing high-quality coconuts. By consolidating these functions, the project aims to create a more efficient system and connect farmers directly with both domestic and international buyers.

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The ministry, with government agencies, the private sector and farmers, was promoting community collection centres as hubs for collecting, grading, processing and marketing quality produce while linking farmers to domestic and international buyers.

This effort comes in response to persistent price pressures caused by oversupply in recent years. While immediate measures included government purchases and private sector procurement of millions of coconuts, a more structural solution was deemed necessary. The collection center model, piloted in Ratchaburi, is slated for expansion to other key coconut-growing regions like Samut Songkhram and Nakhon Pathom.

Beyond market logistics, the government is also intensifying inspections of processing plants to combat raw-material adulteration. Twenty-four plants have been inspected, with actions taken against suspected operators. The Thai Aromatic Coconut Association president noted that the collection centers aim to stabilize farmer incomes by ensuring prices cover production costs and provide reasonable returns. In 2025, Thailand had over 56,000 aromatic coconut farming households, producing nearly 878,000 tonnes. Exports from January to May 2026 showed a notable increase in volume and value compared to the previous year.

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The collection centre began operating on April 1 and aims to stabilise farmer incomes by purchasing produce at prices reflecting production costs and reasonable returns.