Authorities say Chinese investors using Thai nominees have illegally taken control of aromatic coconut production in Ratchaburi Province, suppressing farm-gate prices paid to Thai growers while generating large profits from exports.
At a press conference on Tuesday, representatives from the Central Investigation Bureau and the Department of Business Development said the investigation was launched after Thai coconut farmers in Ratchaburi and nearby provinces reported severe financial hardship despite strong international demand for Thailand’s aromatic coconut products.
Police said officers raided eight coconut-processing and export companies operating in Ratchaburi on Saturday.
Investigators found that six of the firms were illegally involved in agricultural product procurement — a business sector reserved for Thai nationals under Thai law. Authorities have filed charges against 17 people, including 10 Thai nationals and seven foreigners.
According to investigators, the companies were formally structured with Thai shareholders holding 51% of the shares. However, officials said those shareholders were in fact employees of Chinese investors and were acting as nominees on their behalf.
Authorities said the companies operated as intermediaries and exporters while effectively controlling the prices paid to farmers.
“Coconut procurement prices for Thai growers were kept unusually low — at two to five baht each — and the coconuts were processed for export to other countries, especially China, at 35–50 baht each. The huge profits were transferred to the foreign investors,” said Thatphum Jaruprat, commander of the Economic Crime Suppression Division.
“This practice excluded Thai farmers from normal trade systems and caused coconut prices at plantations nationwide to plunge and become unstable,” he said.
Officials also said the six companies had allegedly falsified financial records by reporting losses in order to avoid paying taxes.
Investigators said on Monday they had identified a total of 15 companies suspected of using Thai nationals as nominees.
Eleven of the firms are based in Ratchaburi Province, while others operate in Samut Prakan Province, Pathum Thani Province, Samut Sakhon Province and Bangkok.
Authorities added that some of the companies were found leasing coconut plantations, processing the fruit and exporting the products themselves.
Officials said this vertically integrated structure allowed the firms to maintain tight control over the supply chain and suppress the prices paid to farmers.
