|
|
| • EXCH RATES |
|
Baht/$ 33.18/21
Bid/Ask
|
GOLD |
13,650
- 100
|
|
ASIA FOCUS
Working with foreign experts could help bring down barriers to Thai fruit in tough markets, writes Walailak Keeratipipatpong
Forming joint ventures with foreign partners could be an effective tool to push Thai products abroad, especially to sophisticated markets guarded by restrictive import standards.
For instance, a joint venture between the CP Group and Japan's Diamondstar Corporation five years ago has enabled Thai mangosteen and a large variety of Thai mangoes to access the Japanese market.
Also, the co-operation contract the group signed with the Australian state of Queensland in 2004 to develop Thai tropical fruit for export has opened up a chance for Australian consumers to taste Thai mangosteen. The deal has also established logistics and marketing collaboration on fruit between the two countries.
"In the past, only certain kinds of Thai fruit were exported and only to a limited number of markets, largely because of poor logistics and post-harvest handling," said Kreingkrai Wattanasawang, general manager for horticulture of Charoen Pokphand Seeds Co.
 |
| Technology and know-how provided by foreign partners have helped improve the management of Thailand's fruit orchards. |
He said these two markets imposed high import standards, especially on exotic fruit, to protect local consumers and they would only buy from the manufacturers they trusted.
The Thai-Japanese joint venture, CP Diamondstar Co, was therefore formed to break the barriers, with registered capital of 70 million baht, 51% of which is held by the Thai partner.
It established a factory in Chon Buri to buy mangosteen, and many varieties of mango: Nam Doc Mai, Choke Anan, Maha Choke and the Australian-developed variety R2E2. The fruit is then disinfected by wind and hot steam.
Mangosteen is subjected to additional scanning since its thick skin makes it hard to check if the quality is good.
The company claimed to be the only company in Thailand to use scanners to check the quality of each fruit, a costly process that is reflected in their price in Japan, at around 85 baht each.
Banharn Wismitanant, general manager of CP Diamondstar Co, said the joint venture had not only brought in technical know-how but allowed CP to enter the Japanese market thanks to the strong network of Diamondstar Corporation, a leading Japanese fruit trader.
It shipped 140-150 tonnes of mangoes to Japan last year, the first full year of sales by the joint venture, and the volume is expected to rise to 200 tonnes by the end of the year.
The Thai company is waiting for Japan to give the green light to pomelo imports soon after authorities of the two countries have been working on the procedure for some time.
The Agriculture Department is negotiating for Japan to open its market for pomelo, the third item from Thailand, after mango and mangosteen.
The permission could convince CP to double the production of the fruit to two million units this year.Last year, CP shipped about 400,000 pomeloes to China, Hong Kong, Canada, and Singapore.
Mr Banharn said that Australia's Queensland State was famous for its effective management of pre- and post-harvest fruit handling, especially tropical fruit, as it has the same climate as Thailand. The state can grow many of the same kinds of fruit as in Thailand, such as mangoes, mangosteen, pineapple, rambutan, durian, lychee and longan but have different harvesting periods.
According to Mr Banharn, CP has definitely benefited from the Thailand-Australia free trade area agreement which had been signed just a month before it entered the co-operation contract.
Preecha Kaisrikaew, a horticultural manager, said that care and good management would allow mango trees to bear fruit for at least 20 years.
"With good management, mangoes from the orchard weigh between 700 and 800 grammes each when ripe, as foreign consumers do not prefer green mangoes," Mr Preecha said.
CP Group began its fruit orchard business in 1990 and now operates five orchards in Chiang Rai, Kamphaeng Phet, Ratchaburi, Chon Buri, and Prachin Buri. It also buys produce from a number of contract farms across the country.
Mr Kreingkrai added that the company planned to generate 120 million baht in export revenue this year, from 80 million baht fetched in 2007.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Next
