Innovate to survive, Thais told

Innovate to survive, Thais told

Thailand needs to focus more on value-added food products to cope with stiffer competition once the Asean Economic Community (AEC) is established in the next few years, an international expert says.

Roger van Hoesel, managing director of the Netherlands-based Food Valley, said the AEC provides an opportune moment for Thailand to innovate as it can no longer compete on low wages.

More value-added products are needed to serve the upper market in order to compete against similar but cheaper products from neighbouring countries. This could be achieved by developing packaging, expanding shelf life, increasing health benefits and with sustainability, he said.

"I haven't heard much about sustainability here. In the Netherlands if you don't do anything to making carbon footprints lower, you're out of the market in a few years. The market will demand it from you," said Mr van Hoesel at a seminar hosted by the Industrial Promotion Department (DIP) and Chulalongkorn University.

Manop Kaewkoi, chief executive of Nature Food, said Thailand's rice market needs to focus on quality and added value on top of sales volume.

"Organic farming is not an alternative but the solution to the country's crisis," said the manufacturer of organic rice, which was one of 10 products showcased on the sidelines of the seminar.

Mr van Hoesel said Thailand's food industry has competitive advantages in terms of quality and research and development while the country's vision to develop "Food Valley" will give a significant boost to innovation, especially for small and medium enterprises (SMEs).

It took two years for the Netherlands' Food Valley NL to be set up in 2004, where 60-65% of businesses are SMEs.

Food Valley NL currently consists of 21 research centres. The Food Valley Society involves over 70 agro-food and food-related businesses such as Kikkoman, Heinz and several others operating more than 235 factories.

The Netherlands, well-known for its bread, milk and meat, is the world's second-biggest exporter of agro-food products. The agro-food sector accounts for 10% of the country's gross national product.

The Thai department has targeted three provinces to launch its Food Valley initiative. Chiang Mai in the North is to be the centre for vegetables and processed fruits, Nakhon Ratchasima in the Northeast will focus on meat production, while Prachuap Khiri Khan in the South will be the hub for fisheries products as well as pineapples and coconuts.

The project is an attempt to establish a network of food producers and agriculture operators in clusters to boost productivity.

Through a public-private partnership, the government plays a role in developing infrastructures, logistics, finance, and research and development.

Do you like the content of this article?
COMMENT