THAILAND ANALYSIS: Opportunity Knocks Loudly

Thailand's world-famous cuisine is gaining in popularity at the international level. In 2006, the country's food manufacturers posted a total turnover of over $9.3 billion, representing a double-digit jump compared to the previous year. Seafood accounted for the lion's share of food exports, at just under 53 percent–an increase of more than ten percent. Fruit and vegetables took second spot, representing almost 20 percent of all food exports. They also posted an impressive rate of growth–up 14 percent compared to 2005. Poultry products came third, followed by beverages, dairy products and various rice–based products. So just where is this business coming from? In 2006, the Thai food industry grew about 25 percent in the new markets of Latin America, Eastern Europe, Australia, China and Taiwan. Twelve percent of growth came from existing sales markets in the US, EU, Japan and ASEAN. This year, the Thai Ministry of Commerce expects export volume to increase by 12.5 percent. In line with global trends towards convenience foods and healthy nutrition, a key role will be played by ready-meals, organic food items and functional food.

Competitive strengths

Thailand's food industry have demonstrated a willingness to embrace the latest standards of technology and hygiene. This is demonstrated by the long shelf-life of frozen products; eye-catching, environmentally-friendly packaging; and high-quality, ready-toprepare food items that are popular at Thai restaurants abroad. Such items are the result of a food-production mentality that focuses on the concept of added value. The food sector uses the "Q" quality assurance seal, which was developed on the initiative of various trade and industry organizations, to draw attention to the high quality and safety of its products. Thailand's food industry has certifi cation in accordance with the ISO 9000, ISO 14001, GMP, HACCP and SQF international standards.

Many companies have responded to new trends, such as the global demand for organic foods. Supported by research and development experts from around the world, the Thai food industry is pursuing ambitious goals to position the country as the centre of organic production in the region. Another growth market for food manufacturers in Thailand is halal food (items permissible according to Islamic law). Although the regulations governing quality and production are extremely stringent, companies now offer products specifi cally for this market and are regarded as reliable suppliers to Muslim communities around the world.

As a result of these strategies, the Thai food sector has achieved an international profi le that will help export volumes to continue growing in the long term.