Push to become Japan's top supplier

The memorandum of understanding for developing the food industry will be signed by Industry Minister Charnchai Chairungrueng during a roadshow in Japan with a delegation led by Prime Minister Abhisit Vejjajiva from February 5-7.

 "The cooperation will not only help develop the food industry standard, but also increase Thai export growth as Japan has high safety standards and a developed logistics system," said Yutthasak Supasorn, director of the National Food Institute (NFI).

He said the development of Thailand's food industry standards would also lead to growth in exports, as many countries are laying emphasis on safety and the appropriateness of purchases amid the global economic slowdown.

The value of Thai food exports is expected to drop by 7-8 per cent, from Bt790 billion last year to Bt720 billion this year, due to lower agricultural goods prices and the slowdown in global trade growth, according to the NFI.

Japan is Thailand's major export market, in particular for food, as it is a net food importer.

Japan relies on imports for 60 per cent of its food supply. Its food imports reached US$65.54 billion (Bt2.3 trillion) in 2007, or 10.5 per cent of its total imports. Although China is its major food supplier, the problem of chemical contamination has prompted importers to slash orders from its neighbour. Thailand has high potential to be a major food supplier for Japan.

Under the contract, Japan will transfer knowledge and technology for traceability-system development, cool chain logistics, and cool storage for the Thai food industry.

Yutthasak added that the cooperation would also pave the way for more Japanese investments in the country to make Thailand a genuine food production base for supplying to Japan.

During the trip to Japan, Charnchai is also planning to meet officials from Japan's leading trading firms like Itochu, Marubenni, and Mitsui to increase their confidence in Thai food products.

In addition to boosting Thai food exports, Yutthasak has urged Thai exporters to utilise more of the food export quota under the Japan-Thailand Economic Partnership Agreement, as only a few exports have been reported under the pact's tariff privileges.

Meanwhile, Commerce Minister Porntiva Nakasai will also hold meetings with officials from Japan's Ministry of Economy, Trade and Industry and Jetro during a visit to promote export growth for the country.

Rachane Potjanasuntorn, director-general of the Department of Export Promotion, said the ministry would meet with IEON and Jusco, Japan's leading department stores, to convince them to increase imports from Thailand.