Published on January 04, 2006

Low export value used to be the hallmark of locally made goods like herbal products, wines and spirits, silk and cloth, but the government’s One Tambon One Product (Otop) programme has upgraded them to where they now command premium prices.

Otop products are now among the Kingdom’s major exports, last year generating up to an estimated US$1.63 billion (Bt66.7 billion).

The programme was designed to upgrade the standard of living of the poor, mainly rural farmers. But lately, the products have begun to compete with others of international standard.

Commerce Vice Minister Suvit Maesincee said the government had set a growth target for Otop exports of 25-30 per cent this year. In 2004, the Otop exports grew 20 per cent in value, to $1.25 billion.

For the last 10 months of last year, Otop exports totalled $809 million, an increase of 13 per cent over the same period in 2004.

“Otop products are one of the Kingdom’s main exports, and they showcase Thailand’s unique culture to the rest of the world. These products will be the country’s key exports, attracting both foreign and local buyers,” he said.

Surat Jiraratanawong, who owns a model-boat export business, said that before Otop, his company had very low revenues. But since Otop allowed him to sell his products in the world market, the company has doubled its income.

“Jobs and stable income creation for the poor are the benefits of Otop,” he said, adding that the project had helped local businesses reach international standards.

The Export Promotion Department named his model boats a five-star Otop product of Ratchaburi.

The department takes into consideration everything from product design to quality.

Surat added that his products were exported mainly to the United States market.

Sarawut Wiangwisate, head of the Charoen Five Communities Housewives’ Group, said that with the support of the Export Promotion Department, her organisation had learned to improve itself and expand capacity.

Another five-star Otop product is this same community’s hand-made products, including bedspreads, curtains and cloth. The cloth is mostly exported to the European Union. The group cooperates with the department to display their products at international trade fairs, a strategy that will help develop its export market.

Previously, these housewives had no income, but the Otop initiative has created a monthly income of Bt2,000 to Bt5,000 for each of them, said Sarawut.

To promote Otop goods, the department plans to participate in at least 100 international trade fairs worldwide.

Thitima Muenthongchin, director of the Export Promotion Department’s Otop Office, said the government planned to set up Thailand’s outlets to increase international network as well as distribution channels.

The United States, England, Germany, the Middle East, Japan and Singapore are targeted markets where the government will establish Otop outlets.

Thitima said setting up such outlets would create a direct link between buyers and suppliers and should also increase export growth.

The ministry also plans to establish a special training programme to increase the potential of Thai Otop manufacturers to meet international standards.

The programme will include business administration, marketing strategy and adding value to Otop products.

She said she hoped that local traditions combined with new technology would bring the target of turning Thai Otop into a global brand that much closer.

There are now about 600 competitive Otop producers whose products can compete with their high-quality foreign products.

The top five Otop products continue to expand in both volume and value: health and beauty products ($216 million in export revenues last year), silver jewellery ($125 million), furniture ($107 million), kitchenware and other household/decorative items ($98 million) and fabrics and textiles ($80 million).

Thitima said Otop food, health and beauty products would play a key role in the world market next, year due to their growing fame.

Petchanet Pratruangkrai

The Nation

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