FRIDAY, March 29, 2024
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Sending Thailand’s food to China

Sending Thailand’s food to China

Our food industry provides us with a unique advantage. We are the only country in Asia that is a net exporter of foodstuff. The food industry contributes about 10 per cent of our GDP. However, despite our strong position, there is still a great deal of po

Our food industry owes a lot to our warm climate, fertile soil and abundant natural resources. However, this is by no means the whole story. Our success is also very much due to agricultural research, the cultivation of skills and the sharing of knowledge, and the development of infrastructure that supports the agricultural sector.
It is encouraging that the food industry was picked as one of the 10 high-priority clusters targeted by the government for support and development. One particularly exciting initiative is the development of a Food Innopolis – an innovation park for the food industry, located north of Bangkok, which is due to open early next year. 
Manufacturers from around the world investing in the park will be awarded special privileges and supported by an R&D centre that coordinates with thousands of researchers from universities across the country. 
This kind of initiative will help the industry maintain its competitive edge through the development of world-class product and hygiene standards, associated industries such as nutraceuticals and sophisticated brand development and packaging. 
China, with its advanced technology and well-established food industry, has a lot to contribute in this area. Already there is growing interest from Chinese companies in investing in Thailand’s food industry.
While China’s population of 1.3 billion will ensure a large and healthy appetite for Thai foods, especially as incomes grow, it is important to remember that China is made up of many different markets with different tastes, cultures, infrastructure and regulations. 
The region that is probably of most interest to Thai food exporters is Yunnan, which has a high level of economic development and strong cultural links to Thailand and Asean. 
Yunnan has its own thriving agricultural sector and the fruits and vegetables produced in its temperate climate can complement those produced in different parts of Thailand such as longan, mangosteen and durian. 
While fresh fruits and vegetables from Thailand are already gaining a strong following in Yunnan, the market for Thai processed foods is still untapped. There is plenty of room for growth as more people move to urban centres. 
Since the Kunming-Bangkok Highway was completed two years ago, there has been a sharp increase in shipments of Thai produce to Yunnan. The development of the new railway linking China, Laos and Thailand will bring fresh opportunities. I hope Thailand’s food producers will take advantage of these convenient new transport routes. 
The government aims to transform Thailand into Asia’s largest food-oriented trade and distribution centre. While this may seem ambitious, Thailand’s existing advantages plus the many initiatives underway suggest strongly that this should be achievable. 
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