The latest report on Chinese investors buying protected forest land to expand their durian plantations is worrying. This is more than just an illegal land grab, however. Soon, the whole durian supply chain will feel the impact. As such, these blatant land grabs must be stopped with a sense of urgency.
Clearly, the government has been slow to respond. Foreigners, especially Chinese businessmen, who are major durian importers, integrated with the local supply chain over a decade ago. They opened loeng, a Chinese word for warehouses, where middlemen buy directly from local farmers. Now, some of these foreign investors are moving into the farming sector upstream of the supply chain.
The level of land grabs taking place in Chachoengsao and, more recently, in Chanthaburi are startling. Both provinces are known for their fruit plantations, and both have large swaths of protected public forest.
In one case in Chachoengsao, 500 rai of protected forest land has been converted into a durian farm by a company owned by a Chinese investor with Thai partners. These investors are reported attempting to grab another 300 rai by paying local taxes -- a pretext to justify their land occupancy.
In another case in Chanthaburi, over 900 rai of protected forest has seen some Sor Por Kor land converted into durian farms.
Thailand's durian industry is worth over 82.8 billion baht (US$2.4 billion), with China the biggest buyer. Chinese investors already control 90% of local durian export hubs.
The question is whether local fruit growers are reaping the full benefits. With foreigners and Thai businesses controlling the supply chain, how can they compete?
The bigger question is how much Thailand will benefit from its durian exports if foreign investors become part of the supply chain.
Without its own supply chain, the country and its native farmers lack bargaining chips. Investors and foreign exporters in the supply chain will ultimately set the prices and determine the market. Meanwhile, Thailand's forests are quickly disappearing.
So how are these foreigners gaining access to the land? Needless to say, without local officials either being hoodwinked or complicit, these investors and their Thai proxies would not be able to get their hands on public forest land.
Poor law enforcement is equally to blame. Officials are quick to point the finger at local villagers for giving up their land to outsiders. It remains to be seen whether these foreign investors and their proxies will be arrested for their crimes. Moreover, will the officials responsible for approving these land transfers face any investigation?
Such foot-dragging by the authorities merely emboldens unscrupulous investors and their local partners to snatch more of our national resources while corrupt officials turn a blind eye. Land grabs have become easy, lucrative, and unchecked.
Meanwhile, clearing forests for plantations is ruining our ecosystems. Deforestation erodes soil, dries up water sources, and displaces wildlife. Heavy use of toxic farm chemicals contaminates soil and water sources.
If the government wants to save Thailand's durian industry, it must stop blaming villagers and start tackling these foreign land grabs. Officials who allow such deals to take place should be punished.
Equally important, the government needs to protect local farmers by ensuring fair competition.