Tao Ngoi district in Sakon Nakhon has been famous for decades as the tomato production hub of the Northeast.
The region's sustainable farming legacy was based on the late King Bhumibol's self-reliance scheme, initiated in the 1950s. Farmers in the district were dependent on rice crops, experiencing unstable incomes and hardship until the King's visit to Sakon Nakhon in 1980. He provided a solution for the chronic hardship the farmers in the region were experiencing: tomatoes, baby corn, sweet bamboo and papaya.
The "tomato belt" was born, a region where about 30,000 rai of tomatoes are planted.
Two years later, a processing factory for tomatoes and other produce was established at Tao Ngoi. It was the first factory in the Mun River basin and the third factory owned and operated by Doi Kham Food Products Co.
Tao Ngoi processing factory produces mainly tomato paste and dehydrated fruits, buying the produce not only from Sakon Nakhon but also other nearby provinces, including Nakhon Phanom, lower Ubon Ratchathani, Surin, Buri Ram and Sri Sa Ket.
Yupaporn Charoensuk, manager of the Tao Ngoi factory, said it supports villagers who wish to farm tomatoes within a radius of 150 kilometres from the factory in Sakon Nakhon, Nakhon Phanom, Kalasin, Mukdahan, Bung Kan and Nong Khai provinces by providing tomato seeds and farming technology.
The factory buys tomatoes from farmers for 1-1.50 baht a kilogramme, higher than the market price, but it requires participating farmers to adhere to its tomato-farming standards.
The plant purchases 18,000-25,000 tonnes of tomatoes a year and about 400 tonnes of other fruits a year from farmers.
"The Tao Ngoi factory acts as a social enterprise company that aims to educate farmers not only to develop farming technology in order to increase their productivity, but also preserve the environment and develop sustainably in the long term, as suggested by the late King," Mrs Yupaporn said.
She said the factory recommends that villagers apply the bark grafting technique when growing tomatoes, which can help increase crop yields to 6-12 tonnes per rai, up from four tonnes per rai.
The Tao Ngoi plant generated 150 million baht worth of revenue in 2017, with the figures expected at 200 million this year.
Doi Kham was founded in 1994 by the Crown Property Bureau after a recommendation from the late King Bhumibol to set up a business that buys produce from royal projects and farmers in Chiang Mai at fair prices and provides quality juice for Thais.
The company has grown beyond expectations, becoming profitable in recent years, and there are 5,000 farmers supplying produce for Doi Kham's business.
Doi Kham has processing plants in Fang district, Chiang Mai; Mae Chan district, Chiang Rai; and Tao Ngoi district, Sakon Nakhon.
The company boasts 34 sales shops operating nationwide.
There are 100 products sold under the Doi Kham brands, from concentrated juice, yams and honey to canned fruit in syrup. The company also offers tomato-based products.
The company buys 15,000-30,000 tonnes of tomatoes from farmers each year.
Doi Kham products not only cater to domestic consumers but are also exported to neighbouring markets.
Doi Kham sales are expected to reach 2.07 billion baht for 2017 and 2.4 billion in 2018, up from 1.82 billion in 2016.
In a bid to achieve its sales target, the company is expanding its business via new channels such as hotels, restaurants, catering and airlines, as well as the export market.
Moreover, the company plans to open more Doi Kham shops in Bangkok and suburban areas and open Doi Kham kiosks at skytrain stations for better access to urban consumers.
The company also sells franchise rights to investors to open Krobkrua Doi Kham shops upcountry.
The number of Krobkrua Doi Kham shops will increase to nine this year from seven.
In addition, the company is preparing to benefit from e-commerce, beginning this year.
According to Mrs Yupaporn, Doi Kham plans to improve its old factory at Non Din Daeng district in Buri Ram to make fruit juices that can increase competitiveness and save on transport costs. Certain production lines may be moved from Mae Chan, Chiang Rai to Non Din Daeng.
The improvement is expected to be completed in three years.
The Non Ding Daeng factory was closed in 2001 due to financial difficulties.
The move will save substantial logistics costs for Doi Kham, as 90% of the tomato supply to Mae Chan plants is from the Northeast.
Investment costs for the Non Din Daeng factory are estimated at about 1 billion baht, but exact figures are expected to be disclosed soon.