Vallop Manathanya presents new jasmine rice products under Chia Meng Group’s ‘Golden Phoenix’ brand.

Chia Meng Group, one of Thailand's top 10 exporters of jasmine rice, will spend a combined Bt120 million to open distribution centres in China and the Philippines this year, as it continues its rapid export expansion.

Vallop Manathanya, managing director of Chia Meng Marketing, said yesterday rising incomes in China had fuelled demand for jasmine rice and the company expected to export 600,000 tonnes of the high-quality rice to China this year.

Demand for jasmine rice is also rising in the Philippines, which is a new market for the company, he said.

The company will form joint ventures with partners in China and the Philippines to open both distribution centres.

Vallop said the company's other ventures, including its restaurant business, were also proving successful.

The Thai restaurant Bai Tong it opened in the United Arab Emirates last September has been a hit and the group is expanding its snack business, he said.

Yesterday, it launched a new health-food snack under its CM brand. The product, made from fried brown jasmine rice and other cereals, will be marketed by CM World Kitchen, Vallop said.

He said the company would continue to launch new products and expand its distribution channels as it built on the success of its jasmine rice brands, Golden Phoenix and Hong Thong.

 Hong Thong rice has won the "Trust Brand Asia Award 2006", marking the third consecutive year it took the prize. It also received the "Quality Thai Jasmine Rice Operator Award 2006" from the Commerce Ministry.

Five more ready-to-eat rice snacks will be launched under the CM brand this year, and the company is negotiating with global chains, including Wal-Mart, to stock its products, Vallop said.

The company's expansion plans are not restricted to export markets, as it plans to open a Hong Thong outlet in Bangkok this year, Vallop said.

The group forecasts total sales volume will rise 20 per cent this year to 480,000 tonnes, most of which will be jasmine rice.

It reported Bt8 billion in sales revenue last year, up 60 per cent from 2004.

The total volume of rice exports almost doubled, from 250,000 tonnes in 2004 to 400,000 tonnes last year.

Vallop said the growth was the result of the company's success in penetrating new markets in diverse regions, including Africa, the Middle East and Southeast Asia.

He said that although the baht's appreciation had hurt all rice exporters, total rice exports should not drop this year.

"Thanks to the high demand for rice this year, export volume should be on target, particularly for jasmine rice," he said.

Thailand is targeting exports of 7.5 million tonnes of rice this year, of which 2.2 million tonnes will be jasmine rice. 

Petchanet Pratraungkrai

The Nation