For years orchard owners in the eastern province of Chanthaburi have struggled to survive over-supply and low prices for a wide variety of fruits.
Workers gradually pick their way through thousands of durians as they pack the fruit for export to China.
But the Chinese have come to their rescue with the promise of stable and highly lucrative markets.
Thai fruits are a big hit in China, with investors seeing great potential and looking for business opportunities through local traders so that they can buy produce directly from farmers.
In the past five years, road networks between Thailand, Laos, Vietnam and the southern areas of China have become more accessible, helping to boost land transport in the region.
A wide variety of fruits — rambutan, durian, mangosteen and longgong — from the South and East of Thailand, lychee and longan from the North, as well as bananas, mangoes, coconuts, rose apples and jackfruit from other parts of the country, are transported overland every day to China.
Fruit shipments to China are commonly carried along Route 13 between Nakhon Phanom and Tha Khaek in Laos, Route R3A from Chiang Khong to Huay Xai in Laos, and Route 9 linking Mukdahan to Savannakhet in Laos.
Hundreds of fruit purchasing depots, run by Chinese traders, have also sprung up in the eastern region to buy the produce, particularly durian and mangosteen. The trade is at its busiest in May and June when farm output peaks.
After June, the traders then move to the South, where fruits are ready to be harvested.
The purchased fruits are sent to warehouses in preparation for export.
The quality of the fruits will be examined before being packed and loaded onto container trucks heading to China.
Chinese embassy chargé d’affaires Zhang Yiming, left, leads embassy delegates to Chanthaburi where they sample fruits to be exported to China.
Napssawan Jaejarod, an accounting manager of DFH Interfresh Trading Co, which is the key exporter of Thai fruits to China, said the company has worked with the Chinese traders who buy the produce in the eastern region for years.
“The Chinese markets want a huge amount of fruits, and sometimes we cannot find the produce to meet their demands despite buying hundreds of tonnes every day,” he said.
Wang Yun Liang, a fruit wholesale trader for DFH, said Thai fruits are shifted to major Chinese cities, such as Hong Kong, Shenzhen and Shanghai. There are also big markets for Thai fruits in other cities, he said.
Chinese consumers prefer Thai fruits as they are delicious, fresh and inexpensive, he said.
Somying Sajjatham, a Thai trader who has exported durian to China for almost a decade, said the business generates a lot of income for her.
She said she buys durian from various orchards in Chanthaburi, Rayong and Trat and then moves to the southern province of Chumphon when the fruit season ends in the East.
“The more durian and mangosteen we can get to export to China, the higher revenues we can generate,” Ms Somying said.
“The prices for fruits go up if there is not enough supply in the Chinese market.”
She said fruit quality must be maintained as exporting substandard quality produce, such as unripe durians, will cause Chinese consumers to lose confidence in Thai fruits.
So far this year, Thailand has exported 700,000 tonnes of fruit to China with the total value exceeding 10 billion baht. Almost 20,000 tonnes of it is durian, mangosteen and longan, which are very popular with Chinese consumers.
This year's figure looks certain to surpass last year’s export volume of almost 800,000 tonnes worth nearly 20 billion baht.
Of this year’s exports, almost 400,000 tonnes of fruit have been shifted out of Chanthaburi alone as traders scramble to buy as much produce as they can for export.
According to many orchard growers, every grade of fruit can sell well now.
But it's not only Chinese traders that come knocking on Thailand's door. Vietnamese buyers are turning up as well. The produce they buy is brought back to Vietnam for sorting and distribution throughout the country as well as the southern regions of China.
In the past, farmers only waited for the middlemen to buy their produce and the traders were the ones who manipulated fruit prices.
Many growers suffered from low prices and struggled to cover their farming costs, including petrol, fertiliser and hired workers.
Many said most of their earnings in the past went straight to the Bank for Agriculture and Agricultural Cooperatives (BAAC) for debt repayment, while the rest was used for daily living.
After the money ran out, farmers had to borrow from the BAAC again, creating an endless debt cycle.
The Chinese interest in Thai fruits was highlighted when Chinese embassy chargé d’affaires Zhang Yiming and economic and commercial counsellor Gao Wenkuan, along with other officials and Chinese businessmen, visited central fruit markets and packaging factories in Thailand on June 6.
The visits were organised by the Thai-Chinese Culture and Economy Association (TCCEA) and the Culture Ministry.
Mr Zhang, who was leading the very first high-ranking delegates team from the embassy on a visit to the Thai markets and orchards, confirmed Thai fruits were in high demand in Chinese markets.
“Chinese authorities concerned are ready to facilitate Chinese investment in Thailand and to help Thai businesses to explore the Chinese market,” Mr Zhang said.
He said the cooperation will not only focus on fruits but also gems trading in Chanthaburi, which Chinese investors have an interest in.
Thanaphon Kitkarn, chief executive of the Chanthaburi provincial administration organisation (PAO), said more than 300 Chinese business operators were engaged in the gems trade in the province which has long been known as one of the country’s leading gems trading hubs.
Even more Chinese were coming to invest in the gems trade in Chanthaburi, he said.
The push for Thai fruit exports to China began when Somkid Jatusripitak, the former deputy prime minister and finance minister, worked with the TCCEA in organising a roadshow of Thai fruits in Shanghai as well as the promotions of the products in Guangzhou, Qingdao, Xinjiang and Harbin.
TCCEA chairman Pinij Jarusombat insisted the association will take further steps to strengthen the relationship between the two countries to increase exports.
The trade value of Thai fruits to China is expected to reach 14 billion baht this year, Mr Pinij said, adding he expected this year’s two-way trade could top US$100 billion (3.2 billion baht), versus $80 billion last year.
“The trade partner matching fair between Thai and Chinese businessmen will be held next month in Pattaya after a similar event was successful two years ago. This will strengthen ties between the Thais and Chinese and generate new business opportunities,” Mr Pinij said.
Mr Zhang and Thai-Chinese Culture and Economy Association chairman Pinij Jarusombat inspect durian. Photos by Tawatchai Kemgumnerd
Mr Zhang watches gemstones being sorted at the provincial administration office in Muang district of Chanthanburi.
