Central Group plans to increase its sales of locally grown produce

FRIDAY, FEBRUARY 03, 2017
Central Group plans to increase its sales of locally grown produce

CENTRAL GROUP has set a five-year plan to increase its annual sales of community-produced items, especially foods and vegetables, from Bt240 million last year to Bt1 billion, to support the government’s Pracha Rath project.

The group’s sales of such locally produced items are expected to reach Bt300 million this year, said chief executive officer Tos Chirathivat.
He said sales of local products should reach about 10 per cent of its supermarket sales in five years.
“We plan to promote ‘Farmers’ Markets’ at our retail branches, operated by our retail subsidiaries, both Central Pattana and Thai Watsadu, which have strong retail networks throughout the country,” Tos said.
He said the group was determined to create secure jobs and sustainable income for local communities under its Central Community Development Volunteers project. This scheme is consistent with the government’s policy on public-private partnerships (PPPs) to promote community development and growth. 
A total of 123 communities in 49 provinces making more than 1,508 products have been able to realise combined incomes of more than Bt637 million over the past seven years.
Most recently, Central Group has supported the construction of a packing house for Nam Duk Tai Vegetable Cooperative in Phetchabun province with the aim of comprehensively developing farm produce and creating a Thai hub for toxin-free vegetables within four years. It is hoped that this will also enable access to international markets while bringing economic security, strength and sustainable self-reliance to communities.
Tos said Central Group had a core commitment to develop the output of communities that was consistent with PPP principles. 
Last year, Central Group provided support for five structures with a total budget of Bt6 million. 
Handing over the packing house to Nam Duk Tai Vegetable Cooperative in Pak Duk, Lom Sak district, Phetchabun, is the latest success of the “Central Group for Our Community” project, in turn part of the Central Community Development Volunteers project set up in 2012. These stress the creation of income and stimulate domestic spending, which are among the main objectives of the government’s PPP policy.
The company has become involved in product-development planning for every production process of Nam Duk Tai Cooperative from the skill development of farmers by providing knowledge of organic farming, farm management and the selection of suitable crops for the soil of a given area. 
Previously, this area had grown only rice and cabbages, but now people grow a diversity of vegetables, which are rotated throughout the year.
Farmers also learn from Central’s buyer team about crop planning in line with market demand to prevent surpluses and add value to the products. 
Central Group additionally helps with production and adding value through the construction of packing houses, packaging design and creating the Ban Nam Duk Tai brand, as well as arranging distribution through branches of Central Food Hall and Tops at prices satisfactory to farmers.
The packing house of Nam Duk Tai Vegetable Cooperative was built to GMP (good manufacturing practice) standards for safe vegetables with a budget of Bt2 million. All varieties of vegetables delivered for packing are safe products under the Green Market Phetchabun project, and they come from four districts – Lom Sak, Khao Kho, Nam Nao and Lom Kao (Phu Thap Boek area). 
In the future, Central Group will join Phetchabun province in a plan to promote 100-per-cent-organic vegetables, to make Phetchabun the hub for organic vegetables in Thailand within four years.
Central Group says its support for the Ban Nam Duk Tai brand since 2015 has caused the community’s income from vegetables to grow by more than 135 per cent. Before the group’s participation in 2014, this income was Bt6.8 million, but that had reached Bt16 million by last year. 
The income target this year is Bt25 million, and Bt46 million by 2020.