Concern voiced about possible monopoly of Thai fruit market by Chinese traders

[rooster59]

Concern voiced about possible monopoly of Thai fruit market by Chinese traders

BANGKOK: An academic has sounded an alarm about the ‘invasion” of fruit traders from China who have, so far, have now controlled a substantial market share and, in the near future, may be able to dictate domestic prices of Thai fruits.

Mr Ith Pisarnvanich, director of international trade study centre of Thai Chamber of Commerce University, pointed out that, in the past 2-3 years, the number of Chinese “long” or fruit traders in Thailand has quickly multiplied either in the form of joint venture with Thai partners or using Thais as their nominees.

He said that these Chinese traders do not only buy Thai fruits from major middlemen but also deal directly with the orchard owners by buying fruits of the whole plantations.

If this trend goes on unchecked, Mr Ith warned that Chinese fruit traders may monopolise fruit trading in Thailand and, as such, will be able to dictate fruit prices.

He pointed out that Thai fruit growers are happy to deal directly with Chinese buyers instead of with Thai middlemen because they may get cash in advance and don’t have to be worried with the problem of unsold fruits.

But once the Chinese traders have full control of the market, then they will have more bargaining power and may suppress the prices on the growers, said Mr Ith, adding that fruit processing factories may be hard hit too because most of the fruits have been bought up the Chinese traders.

One reason that Thai fruit exporters find it hard to penetrate the Chinese market because the Chinese law requires that fruits can be imported into China through Chinese companies.

According to statistics, there are now 1,090 Chinese fruit traders in Thailand. Of these, 473 deal in buying of lamyai, 556 in durian and 65 inmangosteen.

Source: http://englishnews.thaipbs.or.th/concern-voiced-possible-monopoly-thai-fruit-market-chinese-traders/

-- Thai PBS 2016-07-09

[Somtamnication]

Can you say Trojan Horse? Thailand has only itself to blame.

[Thailand]

Get used to it!

[Thian]

So the farmers get money in advance, that's why they like the chinese.

Now wait untill they received their money in advance and then there's a natural disaster in Thailand so they can't deliver the fruit......Let's see what happens then.

[colinneil]

Thai farmers are happy to deal with the Chinese, instead of being screwed by corrupt Thai traders.

[shirtless]

Well at least their getting paid , Thailand take your blinkers off,

[ezzra]

The die is cast, those pesky Chinese wormed their way into several key markets in Thailand and now are

controlling most of them, something that Thai people will not be allowed to do the same in China,

the Thai government, deep in the chock hold of the Chinese bear, is afraid to alienate the big boss

of the north, and so, slowly, many important industries and positions will gradually fall in to Chinese hands.....

[Strangebrew]

Do the word annex sound familiar?

[GAZZPA]

Thailand - Welcome to International trade, glad you have finally arrived.

Someone needs to educate this person on the idea of competing. If Chinese traders can buy local fruit in cash and not return unsold qtys then why can't the Thais do the same?

Seems to me the Chinese have seen that they local traders are lazy, lacking innovation and drive and are easy pickings. Might not agree with everything China does but got to say, I don't blame them.

Here is the risk now,, from what I can read the Chinese are trading legally and conforming to Thai law, so what can Thailand do? Well, they can shut the door, that's what they can do. When the whole of the Asean and indeed most of the world is fighting to encourage International trade in their country Thailand is still stuck in over protectionism and xenophobia.

For once I say well done China.

[GAZZPA]

The die is cast, those pesky Chinese wormed their way into several key markets in Thailand and now are

controlling most of them, something that Thai people will not be allowed to do the same in China,

the Thai government, deep in the chock hold of the Chinese bear, is afraid to alienate the big boss

of the north, and so, slowly, many important industries and positions will gradually fall in to Chinese hands.....

Or the Thais compete. Most countries can compete extremely well on home turf, Thailand needs to learn to do the same if it is to embrace International trade, simple as that.

[Familyonthemove]

Difficult to break a generations old culture of treating farmers like a disposable underclass. But with demand about to outstrip supply things are changing, and forward looking Chinese businesses are grabbing a large share of the market.

Same is happening in Africa.

[dageurreotype]

Thailand - Welcome to International trade, glad you have finally arrived.

Someone needs to educate this person on the idea of competing. If Chinese traders can buy local fruit in cash and not return unsold qtys then why can't the Thais do the same?

Seems to me the Chinese have seen that they local traders are lazy, lacking innovation and drive and are easy pickings. Might not agree with everything China does but got to say, I don't blame them.

Here is the risk now,, from what I can read the Chinese are trading legally and conforming to Thai law, so what can Thailand do? Well, they can shut the door, that's what they can do. When the whole of the Asean and indeed most of the world is fighting to encourage International trade in their country Thailand is still stuck in over protectionism and xenophobia.

For once I say well done China.

'Well done China'? Seriously? China produces sh1t. They don't care their poisoned baby milk powder/plastic rice kills their own populace or anyone else's. They Have No Conscience. NONE!

[slapout]

The Thai middle man brought this on himself due to mistreatment of farmers in the past. The Chinese come in with cash in hand , not a promise to pay when they get paid, and pay more for product as there are not 2 or more Thai between them and the farmer.

[masuk]

Well at least their getting paid , Thailand take your blinkers off,

Their what???

[Muzarella]

Also.....Chinese are producing fruits on land bought or leased to Thai, more and more, to export via Laos without paying export fees. Very soon, they will monopoly many businesses in Thailand, just because Chinese are smarter traders than Thai.

[fforest1]

Has anyone seen the price of Durian this year?

Its getting to be damm expensive....

[gandalf12]

Only last night on the television the PM was saying that Thailand wants to be competitive, now is the chance to show it

[gandalf12]

Think what you will of the Chinese but when it comes to business there are few their equal

[gandalf12]

Has anyone seen the price of Durian this year?

Its getting to be damm expensive....

Where I live in Bangkok they are selling it for Baht 120 from the back of a pick-up

[seahorse]

China will not stop at monopolising Thai fruit.

[tomacht8]

This is one of the core strategies of China.
To acquire world food resources for its huge population.
Everywhere they buy agricultural land, South America, Africa, Southeast Asia, Eastern Europe.

[Alive]

There's no magic in the Chinese way. there are a million millionaires by US dollars in China. They are throwing their cash around. block them in the same way you protect Thai land from foreign speculators. Thais can't afford to enjoy their own locally grown food. This is a capitalism reality. Some indigenous people can't even eat their traditional native crops because vegans in the west have found them to be health foods and they are willing to toss heaps of cash at those who grow them. China can buy everything from Thailand and will if Thailand lets them. Durian used to be reasonably priced but these days it's ridiculous. If the Chinese could they buy the orchards and force the Thais out. The government should investigate the money flows to see if there is a transaction record and if the way the funds flowing in violate any tax laws in Thailand or China.

[aussieinthailand]

So when foreigners run a business better than Thai's what do they normally do?

close the profession to foreigners and declare it can only be done by Thai nationals...

[Bluespunk]

Do the word annex sound familiar?

Yeah, it's the building across the road from us...

[Alive]

So when foreigners run a business better than Thai's what do they normally do?

close the profession to foreigners and declare it can only be done by Thai nationals...

I don't think the Chinese are doing it better. They just have a load of money and buy everything cutting out the many small Thai buyers who have to use funds and credit to do their traditional way. Something has to be done for the sake of Thais in the business and consumers. The Chinese could buy everything in Thailand. Business and capitalism isn't everything. I'm sure every nation has controls in place on some items to stop prices spiraling out of control. Thailand has lots of areas already. What else are poor nations to do.

[chowny77]

Heaven forbid that Thai's are getting out maneuvered again. This happened over 150 yrs ago and it will continue. Look at all the gold shops, at least 90% are Thai/Chinese owned.

[selftaopath]

So when foreigners run a business better than Thai's what do they normally do?

close the profession to foreigners and declare it can only be done by Thai nationals...

I don't think the Chinese are doing it better. They just have a load of money and buy everything cutting out the many small Thai buyers who have to use funds and credit to do their traditional way. Something has to be done for the sake of Thais in the business and consumers. The Chinese could buy everything in Thailand. Business and capitalism isn't everything. I'm sure every nation has controls in place on some items to stop prices spiraling out of control. Thailand has lots of areas already. What else are poor nations to do.

Thailand is poor. This is the legacy of almost all corrupt countries. If Thailand was a nation of less self/individual interest it might just really become a nation for the people. Currently is seems to me to be a brunch of families whose sole focus is on acquiring wealth. They are not patriots or lovers of Thailand.

[Friendly Stranger]

That did not take long - the irony.

The list of jobs that are only for Thai's will be substituted for the list of industries that they will no longer have a say in. The Chinese are to blame? I think not.

Fruit today.

Tourism sector tomorrow?

The natives will become restless..

[Friendly Stranger]

Thailand - Welcome to International trade, glad you have finally arrived.

Someone needs to educate this person on the idea of competing. If Chinese traders can buy local fruit in cash and not return unsold qtys then why can't the Thais do the same?

Seems to me the Chinese have seen that they local traders are lazy, lacking innovation and drive and are easy pickings. Might not agree with everything China does but got to say, I don't blame them.

Here is the risk now,, from what I can read the Chinese are trading legally and conforming to Thai law, so what can Thailand do? Well, they can shut the door, that's what they can do. When the whole of the Asean and indeed most of the world is fighting to encourage International trade in their country Thailand is still stuck in over protectionism and xenophobia.

For once I say well done China.

'Well done China'? Seriously? China produces sh1t. They don't care their poisoned baby milk powder/plastic rice kills their own populace or anyone else's. They Have No Conscience. NONE!

I don't think this is what the poster meant with their comment. The old Thai way of doing business is under attack and they have to evolve or they'll just be a supply line for China and the Thai's involvement will just be of a labour force. And maybe this will fall too with eager chinese workers or even cheaper labour from cambodia/burma/vietnam. And my previous comment on the tourism industry is no joke, look at the new tourist demographics.

The only question is that will the light bulb turn on in time?

[timendres]

Thailand - Welcome to International trade, glad you have finally arrived.

Someone needs to educate this person on the idea of competing. If Chinese traders can buy local fruit in cash and not return unsold qtys then why can't the Thais do the same?

Seems to me the Chinese have seen that they local traders are lazy, lacking innovation and drive and are easy pickings. Might not agree with everything China does but got to say, I don't blame them.

Here is the risk now,, from what I can read the Chinese are trading legally and conforming to Thai law, so what can Thailand do? Well, they can shut the door, that's what they can do. When the whole of the Asean and indeed most of the world is fighting to encourage International trade in their country Thailand is still stuck in over protectionism and xenophobia.

For once I say well done China.

'Well done China'? Seriously? China produces sh1t. They don't care their poisoned baby milk powder/plastic rice kills their own populace or anyone else's. They Have No Conscience. NONE!

Reality begs to differ with you: https://www.theguardian.com/world/2009/nov/24/china-executes-milk-scandal-pair

China has many issues, but letting people poison children with no consequences is not one of them.