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Published on November 30, 2007

Fruit exporters must accelerate the development of product quality and logistics systems as well as create value-added products to increase opportunities in the world market, particularly the European Union, a seminar heard yesterday.

Exporters urged this action at the "Opportunities and Challenges of Tropical Fruits to the EU Market" seminar. Otherwise, the country might lose its footprint in the market to rivals, they said.

According to the National Food Institute, Thailand has a market share of less than one per cent in world fresh-fruit trading, which was worth US$47.75 billion (Bt1.62 trillion) last year. Thai exports were valued at $344 million.

Thai processed fruit and vegetables have only a 0.48-per-cent share of the EU market.

At the seminar, panellists shared the view that Thai fruit has become more recognised by foreign consumers. However, uncertainty over product quality, lack of marketing research and promotion, and low development of logistics have obstructed export growth.

National Food Institute executive director Yuthasak Supasorn said fruit exports had a great opportunity to grow on a global scale, particularly in the EU, thanks to the increased popularity of tropical fruits. However, exports are still low because of the problems cited at the seminar.

"Fruit exports should double in the next few years if farmers and exporters seriously develop product quality to meet safety standards required by importing countries, develop logistics and do more advertising to raise people's interest," said Yuthasak.

Thai fruits that have a rich opportunity in the global market include mangosteen, mango, longan, rambutan and pineapple.

Yuthasak also suggested that exporters adopt innovative technology to serve the rising demand of markets such as the EU, where there is high purchasing power for premium products.

Chusak Chuenprayoth, president of Kamphaeng-Sean Commercial, Thailand's leading fruit export firm, said European consumers had increased demand for tropical fruits because of rising health consciousness and the popularity of exotic fruits.

"This is a great chance for fruit exports. However, exports to Europe must have high quality since it enforces high standard requirements such as Eurepgap and other import measures to protect its consumers," said Chusak.

Fruit exports to the EU must comply with the Union's food law. Standards required by the market included food safety procedures, pesticide and microbiological applications, quality monitoring procedures and traceability.

The value of Thai fruits exported to the EU fell from $122 million in 2003 to $213.4 million in 2004 and $210.6 million in 2005. EU imports from Vietnam rose significantly from $77.2 million in 2003 to $121.1 million in 2005.

Chusak suggested exporters accelerate exports to China.

Petchanet Pratruangkrai

 The Nation