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Published on October 8, 2007

After spending nearly two years heading the office that promotes Thai exports to Germany and Switzerland, Piramol Charoenpao says without hesitation, "No other country in the world can beat us on food".

It is the quality of Thai food that makes the director of the Thai Trade Centre in Frankfurt so confident. In the basic food category, which comprises food that is consumed daily, she says there is great potential yet to be captured in Germany, because Thai products meet market demand.

"For example, our seafood has higher quality than that of our neighbouring countries. We also have better packaging and cleanliness, which is a big concern in European markets. Our price might be slightly higher, but customers are willing to pay."

Ready-made frozen food is also increasingly popular, especially with younger consumers who are unwilling to spend time preparing their own food. Moreover, innovative Thai products are also attracting intense interest from importers.

"Thai exporters have never stopped developing their products - for example, frozen shrimp. Besides the typical frozen shrimp, there are a lot of value-added products, such as deep-fried frozen shrimp. German importers are aware of these developments and are very happy about them," Piramol says.

The volume of Thai exports to Germany seems to support her claims. It is one of the most important markets for Thai agricultural products in Europe. Last year, it imported products worth Bt10.75 billion, up 21.5 percent from 2005. The top products were prepared meat and fish, preserved food and seafood (see charts).

One problem, however, is with perishable goods, particularly fresh fruit and vegetables.

Thai exporters find it difficult to compete with similar products from Southern Europe and South America, because of the distance and high shipping costs. Sometimes their products are already beginning to spoil before they reach store shelves.

Piramol believes exporters must develop a technique to prolong the freshness of fruit and vegetables. "Shocking freeze", involving a rapid decrease in temperature, is one possibility, as it can retain more than 95 per cent of quality and flavour.

Meanwhile, she is very positive about the popularity of and demand for traditional Thai cuisine.

"I believe the popularity of Thai cuisine in Germany is beyond that of all other Asian foods," she says, referring to the large number of Thai restaurants scattered throughout Germany and acting as ambassadors-cum-promoters of Thai products.

Although there are several other international cuisines competing with Thai food, they don't concern Piramol.

"Thai cuisine is unique. It is different from Italian or Indian, for example. So we are not competing against them."

Despite the popularity, authentic Thai ingredients like spices and curry pastes constitute only 2 per cent of Thailand's entire agricultural exports, and Piramol says it is crucial to promote them, because of the role they play in boosting Thai food products generally.

Her challenge is not only to get these spices onto the shelves of German supermarkets, but also increase demand for them.

"Otherwise these products might get kicked off the shelves again," she says.

"What the Thai Trade Centre [in Frankfurt] is trying to do is promote authentic Thai cuisine, so that German consumers know how it tastes, and would like to be able to cook it for themselves. In this way, our basic products, such as vegetables, will also be in demand."

Another of her goals is to promote Thai jasmine rice, so that it's recognised in the same way as Italian pasta.

"I would like Germans to see Thai jasmine rice as a part of their daily lives, so that when they think of Asian food, they think of Thai rice. Rice has a weaker position in German's basic food segment, compared to noodles and potatoes. Most Germans are also unaware of the different varieties and origins of rice."

Her chance of showcasing Thai jasmine rice, along with other Thai products, is around the corner. Later this week, the world's most famous food fair, Anuga 2007, will open in Cologne, Germany, and Thailand will be featured as a "country partner".

A Thai pavilion covering 2,071 square metres will house displays from nearly 200 Thai exhibitors. The theme is "Kitchen of the World", with a focus on Thai rice, ready-to-eat products, fresh fruits and vegetables and canned food. There will also be cooking demonstrations, seminars and business-to-business matching. Commerce Minister Krirk-krai Jirapaet will also be there.

Coinciding with the fair, Piramol has successfully organised an event promoting Thai products in a wholesale supermarket chain called Metro, which has 61 branches throughout Germany. All Metro stores will stage the promotion, and in three big branches - Cologne, Frankfurt and Dusseldorf - there will also be cooking demonstrations.

Piramol says attending the Anuga fair is a very good opportunity for Thai exporters. Besides generating immediate orders, they will meet importers, wholesalers and retailers from 108 countries, particularly from Europe. She rejects criticism that all the Thai Trade Centre in Frankfurt does is the routine and mundane business of attending fairs.

"It may look that way, because fairs often take place around the same time of the year. But they are ever-changing events," she says. "By attending fairs each year, Thai exporters see the trends in the food market, including the new concepts, packaging and preservation techniques. They also see the capabilities of their competitors. It is a very worthwhile exposure."

Despite the many obstacles and the fierce competition in the food export industry, Piramol maintains that Thai food products have very strong potential in the German market. Perhaps the fact that Thailand has been chosen as the first-ever partner country in the 80-year history of the Anuga Fair is confirmation of the promising future for Thai products in Germany.

Sopaporn Kurz

The Nation

Frankfurt, Germany