Surat Thani
Surat Thani exhibits dual niche specialization: tourist gateway to islands above, palm oil belt below, with 200% sustainable certification growth since 2019.
Surat Thani embodies dual specialization—two distinct economic niches operating in parallel within the same territory. As mainland gateway to Koh Samui and Koh Phangan, the province processes tourist flows through its ferries and buses. But the hinterland tells a different story: Surat Thani anchors Thailand's palm oil belt, containing a third of the nation's oil palm plantations alongside Krabi and Chumphon.
Thailand produces only 4.7% of global palm oil (distant third behind Indonesia and Malaysia), but this modest share supports 400,000 farm households. Surat Thani has positioned itself as an innovation hub for sustainable production. Since a 2022 MoU with the Roundtable on Sustainable Palm Oil, certified plantation area grew 31% to over 17,000 hectares. The province's sustainable palm oil output increased 200% between 2019 and 2024, reaching over 1.1 million tonnes.
This certification strategy responds to existential market pressure: the EU's Deforestation Regulation (effective December 2024) requires demonstrable deforestation-free sourcing for rubber and palm oil imports. Surat Thani's farmers face a stark evolutionary choice—certify or lose European market access. The province's experience demonstrates how external regulatory pressure can accelerate sustainability transitions faster than domestic incentives alone, functioning as selection pressure that rewards adaptive producers.