The ministry said yesterday that Lotus Supercentre, a core retail business of the Charoen Pokphand Group (CP), would become a distribution centre to promote Thai fruit. CP operates 74 branches of the supermarket chain across China.

The value of Thai fruit exports to China reached US$73 million (Bt2.78 billion) last year, and it leapt by 14.5 per cent to $38.4 billion in the first five months of this year. Durian, bananas, pomelo, tamarind, custard apples and longans are in high demand in China.

The ministry said the new strategy would help reduce export costs and facilitate distribution.

The Export Promotion Department's deputy director-general, Kunyaphan Raengkhum, said not many Thai exporters were experienced in sending fruit to China. Exports via CP's retail arm will create opportunities and reduce risks.

Lotus Supercentre will help interested exporters by providing information on import restrictions to China so that market access is ensured. However, logistics and quality control are major problems and currently more than 80 per cent of Thai fruit exports enter China at Jiangnan, in Guangzhou province.

The ministry plans to launch exports to other provinces.

Caretaker Commerce Minister Somkid Jatusripitak will lead 20 Thai fruit exporters to Guangzhou, Hong Kong and Macau next week. The trip aims to explore export opportunities by increasing distribution channels for provinces where there is high demand for tropical fruit. Somkid will also hold talks with Chinese officials in an effort to eliminate trade barriers.

The Commerce and Agriculture ministries will establish joint offices to promote fruit sales to China.

Petchanet Pratruangkrai

The Nation