Thailand reaps fruits of close cooperation with China

The ministry and supermarket Ito Yokado are jointly promoting Thai fruit in the store's chains across Chengdu city, and is expected to expand further through nine Ito Yokado branches in Beijing.

"Thai fruit export to China |will grow significantly, by no less than 30 per cent this year, thanks to good response from Chinese consumers and the joint-promotion strategy," said Veerasak Jinarat, assistant to the deputy commerce minister.

The value of Thai fruits exported to China reached Bt908.3 per cent in the first quarter of this year, showing a 17.44 per cent leap compared to the same period last year.

The total value of fruit exported to China hit Bt4.9 billion last year.

The fruits most in demand are durian, banana, longan, mangosteen, rambutan, mango and custard apple.

Veerasak said the ministry's strategy to cooperate with local supermarkets and retailers would ensure continuous growth for Thai fresh fruits because more and more Chinese consumers are shopping at malls instead of fresh markets nowadays.

Moreover, Chengdu will work as a gateway for Thai exports to other cities in China, he added.

Jin Jing Cheng, Ito Yokado's deputy general manager, said the import of Thai products and fruits at its branches should double this year.

"Consumers don't just like the taste of Thai fruit, but are also enjoying the health benefits. Fresh fruit from Thailand is becoming very popular, and our supermarkets will increase importsto serve the higher demand," Cheng said.

Last year, Ito Yokado sold 1.6 million yuan (Bt8.2 million) worth or 53 tonnes of Thai fruits in its three branches in Chengdu, a 150-per-cent increase compared to figures from 2007, all thanks to the joint cooperation.

However, the export of Thai fruit to China is still facing many obstacles, including logistical problems, non-tariff barriers and distribution facilities.

Despite the free-trade agreement, Thai fruit exports to China are still subjected to a 13-per-cent value-added tax, plus the long-winding transport adds to the costs.

To eliminate these problems, the ministry is negotiating a waiver of the high tariff and is also planning to make deals with private enterprises to set more distribution centres in the south and west of China so as to ensure freshness, Veerasak added.