Longan is one of three largest tropical fruit export items in Thailand. Over the past decade, increased investment from China in packing houses in production areas has underpinned the tremendous growth of fresh longan exports to China. Reflecting on the trait of the Chinese market that puts less importance on credence attributes than on product attributes of fresh fruits, firms from outside the supply chain as well as incumbent downstream firms appear to have invested in packing houses. The rising number of packing houses, however, did not always translate to intensifying competition among them, which is represented by the stagnant farm gate price of longan. While it is evident that Chinese investment has boosted fresh longan exports to China, its ramifications on value capture of Thai stakeholders are uncertain.
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