Chia Meng Rice Group, the country's leading rice trader and exporter, plans tolaunch ready-to-eat GABA, or germinated brown rice, as the latest innovation in Thailand's rice industry.
Under the "Golden Phoenix Ready Rice" brand, the product offers cooked GABA rice in a microwavable container with a lengthy shelf-life of up to two years, said Vasana Manathanya, brand and marketing manager of Chia Meng's subsidiary, Bangsue Chia Meng Rice Mill Co."The product is aimed at healthconscious target groups and a choice for consumers' demand for new lifestyle products," she said.
The company plans to market GABA rice in November after receiving approval from the Food and Drug Administration.Health stores, premium retail outlets and direct sales are key selling channels.Chia Meng Group may also export the rice, especially to Asian markets such as Singapore and Hong Kong.
Since the product employs advanced know-how, its retail prices will be high,at about 30 to 35 baht for a 180-gramme cup, or three times the price of normal rice.
Gamma-aminobutyric acid or GABA is naturally produced by soaking brown rice in water for about four to six hours.Researchers have found that GABA has health benefits, helping lower blood pressure, improve kidney function and treat insomnia.
Chia Meng last week also launched a range of nutritious rice under the V-Life brand to tap into the growing market for healthy grain products among Thai consumers.
The healthy rice market is a strong niche market worth about 450 million baht this year and expected to rise to 1 billion in the next few years, said Sopan Manathanya, president of Chia Meng Marketing Co.
The company now has about 50 million baht in sales in the segment, giving it an 11% share. The products are aimed at upper-end buyers with strong purchasing power.
"V-Life products will help increase our sales income to about 100 million baht and raise the market share to 20%by the year-end," said Mrs Sopan.
The Rice Department expects to see more varieties of healthy rice enter the market soon to offer health benefits and add value to the grain.
Several varieties of nutritious rice including rice mixed with vitamins, herbcoated rice and GABA rice - have been offered in recent years to tap the growth,said Laddawan Kunnoot, director of the Bureau of Rice Products Development.
Although this is a niche market compared with about 10 million tonnes of rice consumed locally each year, the department supports any developments that will eventually increase income for farmers, says Ms Laddawan."It's a winwin for all sides," she said.
The department has regularly conducted research and development for innovations to rice and is willing to share its findings with manufacturers for commercial development, she added.
Monday, August 31, 2009
Thursday, August 27, 2009
INDUSTRIAL INDEXES SHOW IMPROVEMENT SINCE JANUARY
Thailand's industrial indexes have improved significantly since the start of the year, with the July manufacturing index contracting only 9 per cent year on year compared to 25.6 per cent in January, according to the Industrial Economics Office.
The index in February contracted 23.1 per cent year on year, March by 23.1 per cent, April by 12.8 per cent, May by 12.4 per cent and June by 6.8 per cent.
Arthit Wuthikaro, director-general of the office, yesterday said the month-on-month figures had also shown improvement since February, when the index rose 0.5 per cent from January.
In March, the index expanded 14.2 per cent month on month. Due to political violence, the April figure contracted 8.7 per cent, before expanding 9.2 per cent and 6.6 per cent in May and June respectively.
The July index, however, dropped 1.3 per cent from June.
Arthit said that despite the July reversal, the index should return to positive territory soon due to new orders in several industries and many plants having to increase capacity as a result.
July capacity utilisation stayed at 57 per cent, well above the trough of 50 per cent in February.
Hard disk drives are one sector for which the manufacturing index has increased for three consecutive months, as manufacturers have been able to offer new products to customers. They are, however, concerned about a labour shortage.
In the first seven months of the year, the sector's output and distribution dropped 6.3 per cent and 6.5 per cent respectively from the same period last year. The sector is expected to show positive growth in the fourth quarter.
The frozen-food sector in July also enjoyed growth in manufacturing and sales.
The index in February contracted 23.1 per cent year on year, March by 23.1 per cent, April by 12.8 per cent, May by 12.4 per cent and June by 6.8 per cent.
Arthit Wuthikaro, director-general of the office, yesterday said the month-on-month figures had also shown improvement since February, when the index rose 0.5 per cent from January.
In March, the index expanded 14.2 per cent month on month. Due to political violence, the April figure contracted 8.7 per cent, before expanding 9.2 per cent and 6.6 per cent in May and June respectively.
The July index, however, dropped 1.3 per cent from June.
Arthit said that despite the July reversal, the index should return to positive territory soon due to new orders in several industries and many plants having to increase capacity as a result.
July capacity utilisation stayed at 57 per cent, well above the trough of 50 per cent in February.
Hard disk drives are one sector for which the manufacturing index has increased for three consecutive months, as manufacturers have been able to offer new products to customers. They are, however, concerned about a labour shortage.
In the first seven months of the year, the sector's output and distribution dropped 6.3 per cent and 6.5 per cent respectively from the same period last year. The sector is expected to show positive growth in the fourth quarter.
The frozen-food sector in July also enjoyed growth in manufacturing and sales.
Wednesday, August 26, 2009
Local plastics producers optimistic
The outlook for the local plastics industry is improving in the second half of this year, thanks to demand for plastic packaging in the food and electronics industries, according to the Petroleum Institute of Thailand (PTIT).
According to the institute's research,plastic product growth contracted by 5% in the first half, reflecting poor purchasing power of consumers.
However, the study found that the trend in orders had started to rebound,said Kriengsak Wongpromrat, the assistant executive director of the PTIT.
Demand is rising for packaging for food, agricultural products and for hard disk drives but is sluggish among customers automotive, construction and electrical appliance industries.
"After declining continuously since the economic slowdown started (late last year), demand was steady early this month. That showed us the falling pace had stopped and may be starting to head upward this year, but this is hard to predict," said Mr Kriengsak.
Ready-to-eat food products have played a big role in lifting plastic demand, as more consumers cut expenses by eating more meals at home, he said.
"But [demand for packaging of] hard disk drives in the electronic sector has risen due to the global demand," he said.
Mr Kriengsak said that packaging businesses accounted for 40% of the local plastics industry, with 12% shared by electronics,7% by automobiles and parts, and 6% by construction materials.The total market was worth 370 billion baht last year with volume of 3.25 million tonnes.
PTIT, as an information service provider and researcher for the petroleum and related industries, was hired by the Office of Industrial Economics to collect data on the plastics sector. The aim is to better serve the demand of operators as well as develop the industry in the long term.
A total of 3,000 plastic and related industries out of 5,000 registered companies have participated by providing data to the institute. Major categories include 900 companies in packaging,followed by electronics, automobiles and construction materials.
Arthit Wuthikaro, the OIE directorgeneral, said the research would help operators gauge demand trends, such as for high-grade film products, which are now imported.
The OIE will join with the Board of Investment and other agencies to promote locally made film products through investment privileges, Mr Arthit said.
For the future, research will go toward the bioplastic industry, since concern about climate change is on the rise throughout the world.
According to the institute's research,plastic product growth contracted by 5% in the first half, reflecting poor purchasing power of consumers.
However, the study found that the trend in orders had started to rebound,said Kriengsak Wongpromrat, the assistant executive director of the PTIT.
Demand is rising for packaging for food, agricultural products and for hard disk drives but is sluggish among customers automotive, construction and electrical appliance industries.
"After declining continuously since the economic slowdown started (late last year), demand was steady early this month. That showed us the falling pace had stopped and may be starting to head upward this year, but this is hard to predict," said Mr Kriengsak.
Ready-to-eat food products have played a big role in lifting plastic demand, as more consumers cut expenses by eating more meals at home, he said.
"But [demand for packaging of] hard disk drives in the electronic sector has risen due to the global demand," he said.
Mr Kriengsak said that packaging businesses accounted for 40% of the local plastics industry, with 12% shared by electronics,7% by automobiles and parts, and 6% by construction materials.The total market was worth 370 billion baht last year with volume of 3.25 million tonnes.
PTIT, as an information service provider and researcher for the petroleum and related industries, was hired by the Office of Industrial Economics to collect data on the plastics sector. The aim is to better serve the demand of operators as well as develop the industry in the long term.
A total of 3,000 plastic and related industries out of 5,000 registered companies have participated by providing data to the institute. Major categories include 900 companies in packaging,followed by electronics, automobiles and construction materials.
Arthit Wuthikaro, the OIE directorgeneral, said the research would help operators gauge demand trends, such as for high-grade film products, which are now imported.
The OIE will join with the Board of Investment and other agencies to promote locally made film products through investment privileges, Mr Arthit said.
For the future, research will go toward the bioplastic industry, since concern about climate change is on the rise throughout the world.
Food exporters have doubts
Food exporters remain unsure whether the Thai and world economies have bottomed out, as revived purchase orders for Thai foods are mostly short-term.
"Purchase orders for the food sector until the year-end are still relatively small,with most of them made just for about two months in advance," said Paiboon Ponsuwanna, chairman of the food industry club of the Federation of Thai Industries, at a seminar on Thailand's agro-food economic outlook held yesterday.
"Advance purchase orders should be for a longer term and sustainable if the world's economy has bottomed out."
Short-term purchase orders have tended to prevent food operators and exporters from planning their production in the longer term, he said.
Improved demand from new markets has failed to offset sluggish sales in key markets such as the United States, Europe, Japan and Asean, he added.
In the first six months of this year,Thailand shipped food products worth 354.96 billion baht -6.6% less than in the first half of 2008- and imports fell 13% to 107.40 billion baht.
Food exports this year are now projected to shrink by about 7.2% from 722 billion baht last year, an improvement from earlier forecasts of a 14-15% contraction, he said.
"Thailand's food exports remain in good shape compared with the figures in 2007," said Mr Paiboon.
"The performance would be negative if we compared it with that of last year,when exports saw phenomenal growth as the sector was driven by speculation on fears of food and energy shortage."
Dr Olarn Chaipravat, an honorary adviser to the Fiscal Policy Research Institute Foundation, said Thailand's future policy needs a better understanding of the interconnections between the prices of oil, agricultural commodities and financial assets.
"For Thailand's policy framework over 10 to 15 years, it is essential to study demand for alternative energy, the increase of the world's population, climate change, as well as a new mechanism to raise income of Thai farmers," he said.
"Purchase orders for the food sector until the year-end are still relatively small,with most of them made just for about two months in advance," said Paiboon Ponsuwanna, chairman of the food industry club of the Federation of Thai Industries, at a seminar on Thailand's agro-food economic outlook held yesterday.
"Advance purchase orders should be for a longer term and sustainable if the world's economy has bottomed out."
Short-term purchase orders have tended to prevent food operators and exporters from planning their production in the longer term, he said.
Improved demand from new markets has failed to offset sluggish sales in key markets such as the United States, Europe, Japan and Asean, he added.
In the first six months of this year,Thailand shipped food products worth 354.96 billion baht -6.6% less than in the first half of 2008- and imports fell 13% to 107.40 billion baht.
Food exports this year are now projected to shrink by about 7.2% from 722 billion baht last year, an improvement from earlier forecasts of a 14-15% contraction, he said.
"Thailand's food exports remain in good shape compared with the figures in 2007," said Mr Paiboon.
"The performance would be negative if we compared it with that of last year,when exports saw phenomenal growth as the sector was driven by speculation on fears of food and energy shortage."
Dr Olarn Chaipravat, an honorary adviser to the Fiscal Policy Research Institute Foundation, said Thailand's future policy needs a better understanding of the interconnections between the prices of oil, agricultural commodities and financial assets.
"For Thailand's policy framework over 10 to 15 years, it is essential to study demand for alternative energy, the increase of the world's population, climate change, as well as a new mechanism to raise income of Thai farmers," he said.
Chokdee to raise funds from MAI for expansion
Chokdee Dimsum Restaurant plans to grow domestically and venture abroad in the next three years with funds to be raised from the stock market.
Managing director Dheeraphop Siraprapathum said last week that the company was working with a financial adviser to prepare for listing on the Market for Alternative Investment (MAI).
According to the listing plan, it has already separated its business into three companies.
Chokdee International Food operates the central kitchen and distributes frozen dim sum to all branches nationwide.
Chokdee Dimsum Restaurant operates the dim sum restaurants.
And Chokdee International Franchise oversees its franchised restaurants.
Listing on the MAI would be the springboard for expansion, Dheeraphop said.
Domestically, Chokdee Restaurant would like to enter department stores and shopping centres, while it would like to penetrate overseas markets such as China.
"To have a restaurant in one shopping mall, we need at least Bt4 million. Meanwhile, if we would like to have a Chokdee Dimsum Restaurant overseas, we have to set up a central kitchen. Therefore, the investment will increase to Bt20 million per branch, which is too much for us. We need to mobilise funds from the bourse," he said.
The enterprise would grow rapidly after listing on the MAI, he said.
Since its establishment in 2000, it has multiplied to 18 branches, of which nine operate around the clock.
"We are the first dim sum restaurant in Thailand that sets reasonable prices, which everyone can afford and is open for 24 hours. This is our strength. We can utilise every resource such as employees for the most effective results to gain more money. And night-time is a good period for making money," he said.
The company plans to increase its coverage by six branches this year, of which three have already been created by franchising both in Bangkok and upcountry.
Managing director Dheeraphop Siraprapathum said last week that the company was working with a financial adviser to prepare for listing on the Market for Alternative Investment (MAI).
According to the listing plan, it has already separated its business into three companies.
Chokdee International Food operates the central kitchen and distributes frozen dim sum to all branches nationwide.
Chokdee Dimsum Restaurant operates the dim sum restaurants.
And Chokdee International Franchise oversees its franchised restaurants.
Listing on the MAI would be the springboard for expansion, Dheeraphop said.
Domestically, Chokdee Restaurant would like to enter department stores and shopping centres, while it would like to penetrate overseas markets such as China.
"To have a restaurant in one shopping mall, we need at least Bt4 million. Meanwhile, if we would like to have a Chokdee Dimsum Restaurant overseas, we have to set up a central kitchen. Therefore, the investment will increase to Bt20 million per branch, which is too much for us. We need to mobilise funds from the bourse," he said.
The enterprise would grow rapidly after listing on the MAI, he said.
Since its establishment in 2000, it has multiplied to 18 branches, of which nine operate around the clock.
"We are the first dim sum restaurant in Thailand that sets reasonable prices, which everyone can afford and is open for 24 hours. This is our strength. We can utilise every resource such as employees for the most effective results to gain more money. And night-time is a good period for making money," he said.
The company plans to increase its coverage by six branches this year, of which three have already been created by franchising both in Bangkok and upcountry.
EXPORTERS SEEK TAX CUTS FOR REST OF YEAR
The government has been urged to cut withholding and income taxes applying to exporters as an urgent measure to boost export growth in the remaining months of 2009.
The call was made yesterday by exporters themselves, saying that proposed cuts to import duties may be ineffective in bolstering export growth in all sectors.
Next week the Commerce Ministry is to propose a cut in import duties to the Cabinet, as a measure to promote export growth in the second half of the year. The measure was suggested earlier by 23 trade associations.
However, Thai Garment Manufacturers Association secretary-general Wallop Vitanakorn said that import tariffs for his industry were already very low. Only 1-per-cent import duty is payable on yarn and 5 per cent on fabric. Import tariffs on machinery for the indystry are also only 1 per cent, he said.
The Asean-China Free Trade Agreement will also abolish import taxes on textile and fabric imports next year.
To ensure that the government's support measures will help all industrial sectors, the government should cut withholding taxes for all exporters from 3 per cent to 1 per cent instead of cutting import duties, he said.
Although the Finance Ministry may lose some income, it should not face any legal difficulties in cutting withholding taxes to give the export sector temporary help for the remaining month of the year, Wallop said.
He also called for the government to reduce company income taxes from 30 per cent to 25 or 28 per cent for exporters, because high tax collections were part of the burden being carried by exporters.
Wallop said the government had already reduced income taxes for stocl-marketing investors. It should also consider cutting taxes for the export sector, which was a major engine driving Thailand's economic growth.
In addition, to increase liquidity for small- and medium-sizes enterprises (SMEs), Wallop called for government-owned banks to relax the qualifications required for loan finance.
For example, government banks should lower their collateral or mortgage security requirements from 80 to 100 per cent of total loan value to less than 50 per cent for SMEs.
Thai Frozen Foods Association president Panisual Jamnanwej said that in this industry, import tariffs were major burden only for shrimp exporters.
He suggested that the government should consider cutting import tariffs on shrimp feed because this was a major cost of production for shrimp exporters.
To ensure smooth export growth, the government should stabilise the exhcange rate, as the baht's apprecition had caused difficulties for exporters' competitiveness, he said.
A Commerce Ministry source said the Commerce and Finance Ministries had agreed that, instead of cutting taxes related to imports, they should seek new measures that could be implemented more rapidly.
"The ministry has asked exporters from each tradle association to send their opinions, and on which products they want the government to cut import duties. Responses will be returned to the ministry this week for passing on for the Cabinet's approval, as an urgent measure to lower the burden on exporters," the source said.
Previously, a proposal to cut related import tariffs to help exporters was rejected by the Finance Ministry as it involved legal changes.
Nevertheless, the source said cuts to import tariffs should be implemented within a month of receiving Cabinet's approval. This would ensure that exports could return to positive growth next month or in October.
This would help to avoid a drop in exports earlier projected at a contraction of 18 to 20 per cent, and would mean a drop of only 10 to 13 per cent for the entire year, the source said.
The call was made yesterday by exporters themselves, saying that proposed cuts to import duties may be ineffective in bolstering export growth in all sectors.
Next week the Commerce Ministry is to propose a cut in import duties to the Cabinet, as a measure to promote export growth in the second half of the year. The measure was suggested earlier by 23 trade associations.
However, Thai Garment Manufacturers Association secretary-general Wallop Vitanakorn said that import tariffs for his industry were already very low. Only 1-per-cent import duty is payable on yarn and 5 per cent on fabric. Import tariffs on machinery for the indystry are also only 1 per cent, he said.
The Asean-China Free Trade Agreement will also abolish import taxes on textile and fabric imports next year.
To ensure that the government's support measures will help all industrial sectors, the government should cut withholding taxes for all exporters from 3 per cent to 1 per cent instead of cutting import duties, he said.
Although the Finance Ministry may lose some income, it should not face any legal difficulties in cutting withholding taxes to give the export sector temporary help for the remaining month of the year, Wallop said.
He also called for the government to reduce company income taxes from 30 per cent to 25 or 28 per cent for exporters, because high tax collections were part of the burden being carried by exporters.
Wallop said the government had already reduced income taxes for stocl-marketing investors. It should also consider cutting taxes for the export sector, which was a major engine driving Thailand's economic growth.
In addition, to increase liquidity for small- and medium-sizes enterprises (SMEs), Wallop called for government-owned banks to relax the qualifications required for loan finance.
For example, government banks should lower their collateral or mortgage security requirements from 80 to 100 per cent of total loan value to less than 50 per cent for SMEs.
Thai Frozen Foods Association president Panisual Jamnanwej said that in this industry, import tariffs were major burden only for shrimp exporters.
He suggested that the government should consider cutting import tariffs on shrimp feed because this was a major cost of production for shrimp exporters.
To ensure smooth export growth, the government should stabilise the exhcange rate, as the baht's apprecition had caused difficulties for exporters' competitiveness, he said.
A Commerce Ministry source said the Commerce and Finance Ministries had agreed that, instead of cutting taxes related to imports, they should seek new measures that could be implemented more rapidly.
"The ministry has asked exporters from each tradle association to send their opinions, and on which products they want the government to cut import duties. Responses will be returned to the ministry this week for passing on for the Cabinet's approval, as an urgent measure to lower the burden on exporters," the source said.
Previously, a proposal to cut related import tariffs to help exporters was rejected by the Finance Ministry as it involved legal changes.
Nevertheless, the source said cuts to import tariffs should be implemented within a month of receiving Cabinet's approval. This would ensure that exports could return to positive growth next month or in October.
This would help to avoid a drop in exports earlier projected at a contraction of 18 to 20 per cent, and would mean a drop of only 10 to 13 per cent for the entire year, the source said.
THAI UNION URGES GOVT TO PURSUE FTA WITH EU
Thailand's leading canned and seafood exporter, Thai Union Frozen Products, has urged the government to strengthen exporters' competitiveness by going ahead with bilateral free-trade negotiations with the European Union.
Company president Thiraphong Chansiri said Thailand should move ahead on trade liberalisation with the EU to facilitate market access for Thai foods. So far, Thai foods are subjected to high import tariffs compared with other export rivals in the EU.
"Thai food enterprises have reaped the highest benefit from the FTA's low tariff. The government should consider continuing bilateral trade talks with the EU under the Asean-EU FTA," he said.
Exports of Thai canned tuna to the EU is subject to 24-per-cent export tariff, while other export rivals such as the African, Caribbean and the Pacific Group of States (ACP) and Andean countries have enjoyed a zero per cent tariff rate.
Thiraphong said that if the government can negotiate for lower rates to halve the current import tariff, Thai exporters should be able to boost export share in the market.
He also called for the government to talk to EU countries about increasing market access for sardine and mackerel exports due to their high export potential overseas.
In addition, the company is expecting other bilateral trade pacts, including with Japan, to rapidly pave the way for higher export growth of agricultural and fishery products.
However, he called on the government to issue early warning about rising non-tariff barriers as it could hamper export growth of the Kingdom, despite having FTAs.
Nuntawan Sakuntanaga, director-general of the Trade Negotiations Department, said that talks with the EU under the Asean framework had been suspended due to varying levels of interest among Asean member states.
However, due to the lack of a clear policy to pursue bilateral talks, the department is waiting for the government's mandate on further negotiations.
The EU strongly wants to press ahead with a bilateral free-trade pact with Thailand and some countries in Asean as it foresees high potential for market access.
Company president Thiraphong Chansiri said Thailand should move ahead on trade liberalisation with the EU to facilitate market access for Thai foods. So far, Thai foods are subjected to high import tariffs compared with other export rivals in the EU.
"Thai food enterprises have reaped the highest benefit from the FTA's low tariff. The government should consider continuing bilateral trade talks with the EU under the Asean-EU FTA," he said.
Exports of Thai canned tuna to the EU is subject to 24-per-cent export tariff, while other export rivals such as the African, Caribbean and the Pacific Group of States (ACP) and Andean countries have enjoyed a zero per cent tariff rate.
Thiraphong said that if the government can negotiate for lower rates to halve the current import tariff, Thai exporters should be able to boost export share in the market.
He also called for the government to talk to EU countries about increasing market access for sardine and mackerel exports due to their high export potential overseas.
In addition, the company is expecting other bilateral trade pacts, including with Japan, to rapidly pave the way for higher export growth of agricultural and fishery products.
However, he called on the government to issue early warning about rising non-tariff barriers as it could hamper export growth of the Kingdom, despite having FTAs.
Nuntawan Sakuntanaga, director-general of the Trade Negotiations Department, said that talks with the EU under the Asean framework had been suspended due to varying levels of interest among Asean member states.
However, due to the lack of a clear policy to pursue bilateral talks, the department is waiting for the government's mandate on further negotiations.
The EU strongly wants to press ahead with a bilateral free-trade pact with Thailand and some countries in Asean as it foresees high potential for market access.
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