Suning, one of China’s leading e-commerce platform, has recently signed an agreement with Thailand’s Ratchaburi province to buy 20 million coconuts from local farmers.
The Chinese company will set up a coconut production base in Ratchaburi province to get a foothold in the Thai fruit supply chain. Thailand is the world’s ninth largest coconut producer.
“At the core of fresh produce are the supply chain and logistics. Whoever gets hold of the supply chain and logistics will have the upper hand,” said Suning executive Bian Nong.
Suning is not the first Chinese e-commerce company to build stable “fruit supply chains” to feed the ever-growing appetite of Chinese consumers. Alibaba signed an RMB 3 billion deal buying Thai durians last April.