Thailand, producer of 500 million coconut kernels annually, is welcoming the 2024 Lunar New Year with ample supplies of coconuts.
The February 10 holiday could propel spending by 10% or 50 billion baht ($1.39 billion), a boon for the coconut jelly business. This will be the highest spending since 2021, according to the University of the Thai Chamber of Commerce’s field survey.
Coconut milk jelly is a popular dessert-making ingredient for Chinese restaurants in Bangkok. The eateries capitalize on the boisterous holiday mood to make pricey fancy foods in pig heads and duck shapes.
China’s Multi-million Coconut Purchases
Even as the Lunar New Year celebrations bring extra spending, Thailand is already basking in last season’s coconut exports to China. Sales hit 6.74 billion baht or $187.9 million by mid-Quarter 2, 2023, a yearly rise of nearly 27%.
China buys 80% of its coconut kernels from Thailand annually, which in turn represents 54.83% of worldwide Thai coconut exports.
The mainstay of this crucial commerce is the Free Trade Area that enables tariff-free trade between southeast Asia and China.
Thai Coconut Harvest Labour Issues
Amid rising coconut trade with China, Thailand is still reeling from accusations of using monkey labour in its coconut plantations.
Animal rights advocates in 2023 called for a boycott of Thai coconut imports to stop the use of trained monkeys to do the harvesting.
The Minister of Commerce, Jurin Laksanawisit had first dismissed the allegations in 2020. He had said that the use of macaque primates was only a tourist lure and not an ingrained plantation labour.
Lunar New Year Prices Up
Labour issues aside, costs are rising in time for the Lunar New Year, especially in high class dining spots. A premium dinner is costing up to 3,060 bhat ($85.13) per individual at local restaurants in Bangkok.
The same applies to Thailand’s coconut prices, whose retail prices are up, currently at 49 bhat ($1.36) per unit in supermarkets.
Hence, as Thailand readies for the Chinese New Year tomorrow, coconut and meal prices are uptick due to holiday demand.