Switch to desserts brings sweet rewards

Ariya has invested Bt5 million this year to set up a plant in Samut Sakorn province to make the frozen dessert, lod chong, known for its distinctive green colour with servings of coconut milk. 
The plant will help her to expand her export markets, which now include Singapore, Malaysia and Japan.
While the business is going well, it was a different story in 2006. Ariya, who was then in the seafood business, faced a crisis when most of the seafood manufacturing plants were hit by financial problems. That had an impact on her business, which was engaged in the primary processing of seafood for supply to seafood processing manufacturing plants. 
“Under our business at that time, we bought seafood from fishermen and then we did the primary processing before sending the stock on to the processing plants,” said Ariya, now 46.
“In 2006, most fishing operators and seafood manufacturing plants that we did business with faced investigations from the government over claims of the use of illegal labour.
“Due to these investigations, our business face a steep loss of up to Bt2 million. As a result, we decided to shut down the business.”
At the same time, her sister-in-law found a manufacturing plant that produced lod chong with the aim of exports to Singapore, as |her relative had gained interest |from a Singapore firm. 
Her sister-in-law asked Ariya whether she could join in with the venture.
“At that time, I couldn’t do it but I tried to learn more about how to do this from well-known lod chong producers nationwide,” she said. “I tried to develop the product and it took eight months to arrive at the quality of lod chong with coconut milk that would succeed in getting orders from Singapore, which happened in the last quarter of 2006.”
Since 2006, the company has enjoyed success in selling its products in domestic and overseas markets under the brand Lod Chong Siam.
 The company produces on average 3,000 kilograms a day, with up to 80 per cent distributed in the local market at prices averaging Bt100 per kilogram. The remainder is exported to Singapore, Malaysia and Japan. 
For Japan, the company has developed a product that it markets as Lod Chong Green Tea with syrup, meeting the taste preferences of Japanese customers.
 The Bt5 million investment this year in the plant to produce frozen lod chong with coconut milk and syrup is aimed at increasing the company’s capacity to add more export markets, including in Asean. The company is negotiating with local distributors that have more distribution channels overseas.
“The plant for the frozen dessert will start operations next year and that will help us to double our sales next year, from this year’s levels,” Ariya said.