Chinese Investors Take Control of Thailand's Durian Industry, Research Reveals

กองบรรณาธิการ TCIJ Wed, 26 February 2025 | Read 298

Chinese Investors Take Control of Thailand's Durian Industry, Research Reveals

New research reveals Chinese investors have rapidly gained control of Thailand's durian sector in eastern provinces. Since 2017, Chinese capital has expanded from export operations to direct ownership of packing facilities and orchards, with approximately 90% of packing houses now Chinese-controlled despite being registered under Thai names. Senate investigations have uncovered nearly 1,800 rai of land in Chanthaburi province targeted for large-scale Chinese durian plantations, raising concerns about environmental impact, market monopolization, and Thailand's long-term food sovereignty.

BANGKOK, February 26, 2025 - A recent study conducted by Land Watch Thai and EEC Watch sheds light on how Chinese investors are rapidly taking control of Thailand's durian industry, particularly in the eastern provinces of Chanthaburi, Rayong, and Trat.

The research, published in September 2024, reveals that Chinese capital began entering Thailand's durian market in 2017, initially establishing packing houses for export to China. What started as purchasing from Thai middlemen has evolved into direct ownership of packing facilities and durian orchards.

According to data from Thailand's Department of Agriculture, as of May 2024, there are 2,122 fruit packing houses (known locally as "long") exporting to China nationwide. In Chanthaburi province alone, the number has skyrocketed from just 122 in 2016 to 909 currently. While these businesses are registered under Thai names or companies, approximately 90% are actually Chinese-owned.

Around 2021, Chinese investors began aggressively purchasing durian orchards from local farmers. The research highlights three primary methods used to acquire land:
- Using Thai nominees as proxies
- Marrying Thai women who then hold the land titles
- Obtaining Thai citizenship

Chinese investors strategically target lands near large water sources such as reservoirs or major canals, especially in districts like Kaeng Hang Maeo, Na Yai Am, Tha Mai, and Khao Khitchakut in Chanthaburi province. They often avoid purchasing land with proper title deeds, instead focusing on cheaper properties in national forest reserve areas that lack formal documentation.

In Kaeng Hang Maeo district, Chinese investors now control approximately 20-30% of all land purchased in the area. Prices for undeveloped land average around 100,000 baht per rai, while productive durian orchards sell for 300,000-500,000 baht per rai.

The Senate Committee on Justice and Law has raised concerns after investigating nearly 1,800 rai of land in Chanthaburi province in January 2025, where Chinese investors allegedly plan to develop large-scale durian plantations. Two major cases have already been prosecuted, including a 105-rai plot and another spanning 1,848 rai in protected forest areas.

According to the study, Chinese capital is attempting to control the entire durian supply chain from production to export markets. A Thai packing house operator revealed that five major Chinese business groups now control durian prices daily.

The research also highlights environmental impacts, including intensive water and chemical usage on Chinese-operated farms with little regard for surrounding agricultural areas or water sources. Encroachment on forest areas and irrigation zones has been documented, particularly in Trat province.

The researchers warn that without urgent intervention, Thai operators—who comprise less than 10% of the market—will disappear, threatening Thailand's food sovereignty and long-term agricultural sustainability.

 

Note: 1 rai equals approximately 0.4 acres (0.16 hectares). The land areas mentioned in this article (1,800 rai) would be equivalent to about 720 acres or 290 hectares.

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