Food industry sees signs of better year as Thaifex kicks off

 

At the world’s fifth-largest international food-industry showcase, local operators have found that more international buyers have higher confidence to do business with Thais amid the stable political situation under a military regime. 

The buyers also view Thailand as a production and trading centre for high-quality and highly innovative foods.

Vasit Taepaisitphongse, executive vice president and chief operating officer of Betagro, said yesterday that the firm is expecting sales to increase 14 per cent to about Bt91 billion this year on stronger domestic consumption and better exports to Asean and other markets.

“With the Asean single market coming up under the Asean Economic Community, the firm will focus our food products and development to serve not only the Thai market, but also Asean and international consumers. 

“The company will invest on average about Bt4 billion, mainly in Cambodia, Myanmar and Laos, to expand our plants to reach Asean consumers,” he said.

For this year, the firm will focus on innovations such as low-fat sausages, as well as on expanding sales to food-service operators and restaurants.

Itthipat Peeradechanpan, chief executive officer of Taokaenoi Food and Marketing, a seaweed-snack producer and trader, said that thanks to the recovery of domestic consumption and regional integration, the company had targeted at least 5-per-cent sales growth this year from last year’s Bt3 billion.

The company experienced only 3-per-cent growth last year, the slowest pace in the 10 years since the firm was established, because of the political problem and fadeout in domestic consumption.

However, for this year, the firm has confidence in generating higher incomes in both local and export markets, especially in Asean thanks to seamless trading.

After Asean’s integration, the firm expects that its exports will exceed domestic sales in the coming years, as the Asean market has more people. 

The firm will adopt more technology and innovation in its products, while making its Tao Kae Noi brand an international one.

More foreign buyers have come to Thaifex this year as they have more confidence in the country’s political stability, while the upcoming AEC has created a halo for Thailand as a centre of food trading in the region, Itthipat said.

Vantanee Seang-U-Tai, managing director of Lucky Union Foods, said that despite the high competition in the frozen-food industry, the firm targeted its sales to grow 10 per cent to Bt2 billion this year.

“The company will focus on a market-penetration strategy to Asean countries, emphasising Cambodia, Laos and Myanmar. Besides producing other brands under OEM [original equipment manufacturer] contracts, the firm will also focus more on producing and promoting its own Kani, Lucky and LUF brands in domestic and Asean markets,” she said.

Vittavat Tantivess, executive vice president of marketing at Charoen Pokphand Foods, said the company’s sales were expected to pick up byy 10-15 per cent this year from Bt426 billion last year thanks to higher exports and domestic trading in the food-service business. Deputy Commerce Minister Apiradi Tantraporn said the Thai food industry was expected to grow by 10 per cent this year from about Bt800 billion in 2014.

With an abundant supply of raw materials and an agriculture-based industry, Thailand has great potential to become the kitchen of the world, she said.

The focus on food innovation, hygiene, food safety and value-added production will help the country become one of the world’s top five food suppliers in the near future. Thailand currently ranks as the 14th largest food supplier in the world, Apiradi said.

Thaifex, which was kicked off yesterday by Prime Minister Prayut Chan-o-cha, is being held until Sunday at Impact Muang Thong Thani. More than 1,600 exhibitors from 34 countries have booked 4,000 booths. About 112,000 people from around the world are expected to join the event.