Working with foreign experts could help bring down barriers to Thai fruit
Thailand
Thursday 19 June 2008
Forming joint ventures with foreign partners could be an effective tool to push Thai products abroad, especially to sophisticated markets guarded by restrictive import standards. For instance, a joint venture between the CP Group and Japan's Diamondstar Corporation five years ago has enabled Thai mangosteen and a large variety of Thai mangoes to access the Japanese market. Also, the co-operation contract the group signed with the Australian state of Queensland in 2004 to develop Thai tropical fruit for export has opened up a chance for Australian consumers to taste Thai mangosteen. The deal has also established logistics and marketing collaboration on fruit between the two countries.
„In the past, only certain kinds of Thai fruit were exported and only to a limited number of markets, largely because of poor logistics and post-harvest handling," said Kreingkrai Wattanasawang, general manager for horticulture of Charoen Pokphand Seeds Co.
He said these two markets imposed high import standards, especially on exotic fruit, to protect local consumers and they would only buy from the manufacturers they trusted.
The Thai-Japanese joint venture, CP Diamondstar Co, was therefore formed to break the barriers, with registered capital of 70 million baht, 51 percent of which is held by the Thai partner. It established a factory in Chon Buri to buy mangosteen, and many varieties of mango: Nam Doc Mai, Choke Anan, Maha Choke and the Australian-developed variety R2E2. The fruit is then disinfected by wind and hot steam. Mangosteen is subjected to additional scanning since its thick skin makes it hard to check if the quality is good.
„In the past, only certain kinds of Thai fruit were exported and only to a limited number of markets, largely because of poor logistics and post-harvest handling," said Kreingkrai Wattanasawang, general manager for horticulture of Charoen Pokphand Seeds Co.
He said these two markets imposed high import standards, especially on exotic fruit, to protect local consumers and they would only buy from the manufacturers they trusted.
The Thai-Japanese joint venture, CP Diamondstar Co, was therefore formed to break the barriers, with registered capital of 70 million baht, 51 percent of which is held by the Thai partner. It established a factory in Chon Buri to buy mangosteen, and many varieties of mango: Nam Doc Mai, Choke Anan, Maha Choke and the Australian-developed variety R2E2. The fruit is then disinfected by wind and hot steam. Mangosteen is subjected to additional scanning since its thick skin makes it hard to check if the quality is good.