Required Report - public distribution

**Date:** 10/6/2006

**GAIN Report Number:** TH6105

TH0000

**Thailand**

**Exporter Guide**

**Report**

**2006**

**Approved by:**

![](media/image1.wmf)Mr. Gary W. Meyer, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Ms. Sukanya Sirikeratikul, Marketing Specialist

**Report Highlights:**

This guide serves as a resource for U.S. companies seeking to do
business in Thailand, and provides practical tips and information on
local business practices, consumer preferences and trends, food
standards and regulations, import and inspection procedures. This guide
also identifies opportunities and entry approaches for the three market
sectors (food retail, food service, and food processing). Finally, this
guide identifies the best high-value product prospects and key contacts.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Bangkok \[TH1\]

\[TH\]

**Table of Content**

[**Section I.** **Market Overview 3**](#section-i.-market-overview)

[Section II. Exporter Business Tips
7](#section-ii.-exporter-business-tips)

[Section III. Market Sector Structure & Trends
9](#section-iii.-market-sector-structure-trends)

[Retail Sector 10](#retail-sector)

[HRI Food Service Sector 13](#hri-food-service-sector)

[Food Processing Sector 14](#food-processing-sector)

[Section VI. Key Contacts & Further Information
19](#section-vi.-key-contacts-further-information)

[Appendix I. Statistics 24](#appendix-i.-statistics)

[TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION
24](#table-a.-key-trade-demographic-information)

[TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS
24](#table-b.-consumer-food-edible-fishery-product-imports)

[TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS
25](#table-c.-top-15-suppliers-of-consumer-foods-edible-fishery-products)

[TABLE D. GDP Growth Rate (%) 25](#table-d.-gdp-growth-rate)

[TABLE E. Economic Projection of 2006
26](#table-e.-economic-projection-of-2006)

[TABLE F. EXCHANGE RATE (2000-2005)
26](#table-f.-exchange-rate-2000-2005)

# Section I. Market Overview 

The Kingdom of Thailand is popularly known by the Thai food and
agricultural industry as the "Kitchen to the World." Thailand is the
Southeast Asia's second largest economy and has experienced strong
annual economic growth in recent years. Although the September 19 coup
may affect the confidence of some foreign investors, the new government
led by the new Prime Minister, General Surayud Churanont, will have the
legislative power to pass the 2007 budget. Therefore, the Thai economic
situation remains healthy. It is estimated that the Thai growth rate
should be over 4 percent in 2006 and be slightly reduced to around 4
percent in 2007. For 2006, exports and domestic consumption are the
major economic factors driving the Thai economy and, as a result of a
decline in oil prices, pressure on the Thai economy has improved.

![](media/image2.wmf){width="5.7347222222222225in"
height="1.3965277777777778in"}During January-August this year,
agricultural exports expanded by 17.8 percent, industrial exports by 14
percent, and other exports by 25.8 percent. Overall economic stability
is expected to remain favorable. The unemployment rate declined from 3.6
percent in 2000 to 1.7 percent in 2005 and according the Ministry of
Labour, the unemployment rate as of June 2006 is 1.5 percent. During
2005, Thai Baht moved in the range of 38.21 to 42.02 Baht per dollar,
and the average rate for 2005 was 40.22 Baht per US dollar. Minimal
economic impact has been detected since the transition of political
power in Thailand on September 19. The Thai Baht has become stable after
a slight 2 percent depreciation.

Thailand is currently the 18^th^ largest export market for U.S.
agricultural products including fish and forestry products. In 2005,
Thailand imported \$136 million in consumer oriented foods from the
U.S., up 19 percent over 2004's \$114 million. Corresponding U.S.
imports from Thailand were \$543 million, up 9 percent. Exports have
been among the key engines maintaining Thailand's economic stability
since 2005, despite increasing concerns over the volatile global
economy.

![](media/image3.wmf){width="5.7347222222222225in"
height="2.0833333333333335in"}

Total exports of U.S. foods (including bulk and intermediate, consumer
oriented, and edible fishery) to Thailand have shown tremendous growth
over the past five years. For example, exports to Thailand jumped from
\$601 million in 2001 to \$644 in 2005. The fastest growing segments are
consumer oriented agricultural products (19 percent), edible fish and
seafood products (4 percent), and bulk and intermediate products (2
percent). The mix of products exported to Thailand from the U.S. has
remained stable; bulk and intermediate account for 76 percent followed
by consumer-oriented products with 19 percent and edible fishery
products with 5 percent in 2005.

High duties on agriculture and food products are a major hurdle for
exports of high-value U.S. food products. Duties on imported
consumer-ready food products range between 30 percent and 60 percent.
Tariffs on meats, fresh fruits and vegetables, and processed foods are
likewise high, even for items with little domestic production. Frozen
french fries, for example, are not produced in Thailand, but face a high
tariff of 30 percent (WTO bound rate for 2006). When import duties,
excise taxes, and other surcharges are calculated, imported wines face a
total tax of nearly 360 percent. The tariff on apples stood at 10
percent, while pears and cherries saw a tariff as high as 30 percent and
40 percent (2006 WTO bound rate) respectively.

The Free Trade Agreement between Thailand and the U.S., which began in
mid 2004 and takes aim at market access barriers such as the high
tariffs in Thailand. FTA would be particularly beneficial for U.S.
agricultural producers, remove existing trade barriers and create new
opportunities for U.S. agricultural exporters in this major market.
Reducing Thailand's high tariff on imported agricultural products is of
crucial benefit to the U.S. agriculture. It also helps ensure that U.S.
exporters are not put at a disadvantage with their key competitors from
countries such as ASEAN, China, Australia, New Zealand and India, which
already have preferential trade agreements with Thailand. Political
unrest caused progress on FTA talks to stall in early 2006. At this time
it is not clear when FTA negotiations might resume.

Thailand offers many opportunities for alert U.S. exporters. Some
examples include:

-   Thailand, covering 198,114 square miles, is situated in the heart of
    Southeast Asia and is considered as the gateway to Southeast Asia.
    Thailand borders with Laos in the north and northeast, the Union of
    Myanmar in the north and west, the Andaman Sea in the west, Cambodia
    and the Gulf of Thailand in the east, and Malaysia in the south.
    With a population of 65 million, Theravada Buddhism is the national
    religion and is actively practiced by about 95 percent of Thais,
    with the remainder practicing Islam, Christianity, Hinduism and
    other faiths. About 51 million Thais are aged over 15 years.

-   The size of the work force now exceeds 37 millions, of which 54
    percent are male and 46 percent are female.

-   The minimum wage in Thailand is roughly \$4.63 per day in Bangkok,
    and between \$3.52-4.55 per day in other provinces.

-   A literate population due to increased overseas studies,
    international travel, access to Internet and cable TV.

-   Over 49 percent of Thai population aged above 6 years old favored
    snacks. In 2005, about 42 percent of children aged between 6-14
    years old ate snacks everyday.

-   About 10 percent of the total population lives in Bangkok, which
    accounts for 90 percent of the sales of fast moving consumer goods.

-   Most of medium and high-income people live in the major cities,
    including Bangkok, Phuket, Chiang Mai, Prachuapkhirikhan, Chonburi,
    Hat Yai, Nong Khai, Nakorn Ratchasima, Samui Island, Surat Thani,
    Ubon Ratchatahni and Udon Thani.

-   Baht stability and appreciation in 2006 led to an increase in
    imported consumer-oriented food products from the U.S.

-   Thais living in urban areas have become relatively brand conscious
    and their shopping styles have moved away from the traditional
    open-air wet markets to modern supermarkets and shopping centers
    which offer them convenience and a wide selection of products.

-   The expansion of retail business, particularly, hypermarkets,
    supermarkets, modern shopping malls, convenient stores, department
    stores, etc.

-   The demand for imported processed food and raw materials used for
    re-processing and re-exporting has increased as they are considered
    better quality than local products.

-   Due to the increasing number of women and young adult labor in the
    work force, the introduction of ready-to-eat and prepared food items
    is expected to trigger major growth in the convenience food market
    in Thailand. Moreover, this younger population is very receptive to
    new food tastes that fit their lifestyles.

-   The Tourism Authority of Thailand has set a target to develop
    Thailand as a tourism hub of Asia. In 2006, tourist arrivals are
    estimated at 13.5 million, a rise of 20 percent and the revenue
    generated will be \$11 billion, an increase of about 30 percent. The
    target for tourist arrivals in 2007 has been set at 14.7 million.
    Tourism revenue is expected to reach \$13 billion, representing an
    increase of 15 percent.

-   The hotel occupancy rate in Thailand for 2005: Bangkok-70 percent,
    Chiang Mai-47 percent, Kanchanaburi-37 percent, Krabi-26 percent,
    Hua Hin-59 percent, Nakhon Ratchasima-51 percent, Nongkhai-42
    percent, Pattaya-58 percent, Phuket-35 percent, and
    Ubonratchathani-44 percent

-   High growth in the number of hotels, resorts and other tourist
    accommodations leads to an increase in the number of imported food
    items to support more tourists.

-   Upper and middle-income groups in Thailand like to spend money on
    food, especially during the holidays. Consumption of imported food
    products peak during New Year, Christmas, Chinese New Year and Thai
    New Year as gifts of food are given, especially consumer products
    such as coffee, tea, milk, snack food, jelly, jam, crackers, nuts,
    fruit juice, wine, beer, whisky, health food and fresh fruit.

-   Continuous increases in the number of health-conscious consumers is
    leading to higher demand for health and functional food and drinks.

-   Thai consumers view U.S.-origin foods and beverages as high quality
    and consistent products, for instance: U.S. beef, French Fries,
    dried and fresh fruit, nuts, fruit juice, jams, and other products
    are always rated by local consumers as the best in the world.
    However, this perspective does not apply to all U.S. products, as
    some local consumers still think of France first when they think of
    wine.

-   Even though Thai consumers view U.S. products as high quality, they
    are very price conscious and susceptible to economic swings. There
    is a high possibility that the low and middle-income group will
    shift to cheaper products of acceptable quality during an economic
    recession.

In summary, the Thai market offers many opportunities to U.S. exporters,
but it is not without difficulties. To put these opportunities in
perspective, some U.S. "Advantages" and "Challenges" are shown in the
table below:

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| -   Varieties of superior U.S.    | -   U.S. exporters have spotty or |
|     high quality agricultural     |     incomplete knowledge about    |
|     products from fresh to        |     the Thai market and at the    |
|     processed food                |     same time face severe         |
|                                   |     competition from China,       |
| -   High opportunities exist for  |     Australia, New Zealand, Japan |
|     U.S. products targeting niche |     and neighboring countries.    |
|     markets                       |                                   |
+-----------------------------------+-----------------------------------+
| -   GDP for 2006 is projected in  | -   U.S. products are not always  |
|     the range of 4.0-4.5 percent  |     price-competitive compared to |
|                                   |     imports from other Asian      |
| -   Increase in Thai consumers'   |     countries due to high         |
|     preference for higher quality |     tariffs, shipping costs and   |
|     products                      |     the long distance to Thailand |
+-----------------------------------+-----------------------------------+
|                                   | -   Bilateral free trade          |
|                                   |     agreement between Thailand    |
|                                   |     and other countries,          |
|                                   |     particularly China,           |
|                                   |     Australia, New Zealand and    |
|                                   |     India, induces the import of  |
|                                   |     more low-price products from  |
|                                   |     these trade partners          |
+-----------------------------------+-----------------------------------+
| -   Local Thai consumers view     | -   Local manufacturers can       |
|     US-origin products as high    |     improve or change quality of  |
|     quality and safe and are      |     products, tastes or packaging |
|     confident in U.S. foods and   |     sizes according to changes in |
|     beverages consistency         |     consumer behavior and can     |
|                                   |     lower production cost         |
+-----------------------------------+-----------------------------------+
| -   Proliferation of retail       | -   Lack of importer and retailer |
|     industry. New retail outlets  |     knowledge and training in     |
|     are expanding which allow     |     purchasing and handling of    |
|     consumers in any part of      |     U.S. food products            |
|     Thailand to get access to new |                                   |
|     imported products             |                                   |
+-----------------------------------+-----------------------------------+
|                                   | -   Strong local brands which are |
|                                   |     either foreign or Thai        |
|                                   |     origins in many food and      |
|                                   |     beverage products e.g.        |
|                                   |     Nestle, Singha Beer, Chang    |
|                                   |     Beer, Frito-Lay, etc.         |
+-----------------------------------+-----------------------------------+
| -   Eating style of Thai people   | -   Lack of continuous promotion  |
|     is changing to include more   |     of U.S. varieties in Thai     |
|     imported food items           |     market. Exporters need to     |
|                                   |     support market promotion      |
|                                   |     campaigns to attract and then |
|                                   |     build new markets             |
+-----------------------------------+-----------------------------------+
| -   The international food        | -   Local production is           |
|     service industry is expanding |     increasingly substituting     |
|     rapidly, both in numbers of   |     traditional food imports.     |
|     companies entering the market |     Snack foods, salad dressings, |
|     and in numbers of outlets.    |     sauces, jams and other        |
|     Most major international fast |     processed foods that are      |
|     food companies are            |     relatively inexpensive, but   |
|     represented in Thailand,      |     have high freight costs, are  |
|     including McDonalds, Burger   |     increasingly produced         |
|     King, KFC, A&W, Pizza Hut,    |     locally.                      |
|     Auntie-Anne's, Baskin         |                                   |
|     Robbins, Swensen's,           |                                   |
|     Delifrance, Starbucks, Subway |                                   |
|     etc. The rapid growth of the  |                                   |
|     fast food sector is           |                                   |
|     stimulating many related      |                                   |
|     businesses such as bakery     |                                   |
|     products, dairy products,     |                                   |
|     meat and poultry etc.         |                                   |
+-----------------------------------+-----------------------------------+
| -   Increase in niche markets     | -   Market penetration for        |
|     with higher incomes and high  |     imported products is          |
|     premium product preferences   |     concentrated in Bangkok and   |
|                                   |     major tourist-destination     |
|                                   |     provinces mostly              |
+-----------------------------------+-----------------------------------+
| -   The booming tourism industry  | -   American style food products  |
|     is ratcheting up demand for   |     mass produced locally cost    |
|     HRI products, especially U.S. |     less                          |
|     beef, turkey, seafood, wine   |                                   |
|     and seasonings which can be   |                                   |
|     used in American, French,     |                                   |
|     Japanese and other            |                                   |
|     international style           |                                   |
|     restaurants                   |                                   |
+-----------------------------------+-----------------------------------+
| -   Reliable supply of U.S.       | -   Thai government's policy and  |
|     agricultural products and     |     actions try to increase       |
|     advanced U.S. food processing |     demands for Thai local        |
|     technology                    |     products                      |
|                                   |                                   |
|                                   | -   Food safety concerns          |
+-----------------------------------+-----------------------------------+
| -   Government's policy to        | -   Some food ingredients can be  |
|     support the development of    |     produced locally              |
|     value-added production, this  |                                   |
|     will boost the demand of food |                                   |
|     ingredients, especially new   |                                   |
|     ingredients                   |                                   |
+-----------------------------------+-----------------------------------+
| -   Good relationships with       | -   High import tariffs on high   |
|     foreign suppliers             |     value consumer food and       |
|                                   |     beverage products, especially |
|                                   |     U.S. meat products, wine,     |
|                                   |     whiskies, cherries, peaches,  |
|                                   |     plums, pears, French fries,   |
|                                   |     etc.                          |
+-----------------------------------+-----------------------------------+
| -   Thai importers prefer to deal | -   Lack of trader and consumer   |
|     with quality and reliable     |     awareness of U.S. products,   |
|     U.S. suppliers who are able   |     while marketing costs to      |
|     to supply products at         |     increase consumer awareness   |
|     competitive prices            |     are high                      |
+-----------------------------------+-----------------------------------+
| -   Thailand's beneficial         | -   Due to the high import        |
|     geographical location is      |     tariffs on U.S. products,     |
|     viewed as a gateway to the    |     most Thai importers have      |
|     larger Indochina and other    |     shifted to import products    |
|     Asian markets                 |     from other Asian countries,   |
|                                   |     especially Australia, China,  |
|                                   |     Malaysia, and Singapore       |
+-----------------------------------+-----------------------------------+
| -   Increasing Thai exports of    | -   US products, especially soya  |
|     food products drive demand    |     based products, are           |
|     for food ingredients.         |     experiencing some issues with |
|                                   |     GMO content. There is no      |
| -   Increasing demand for using   |     problem with food products    |
|     imported ingredients for      |     destined for local            |
|     innovative products.          |     consumption, but there are    |
|                                   |     issues for export products to |
| -   Growing number of companies   |     countries such as EU and      |
|     paying attention to quality   |     Japan.                        |
|     over cost for food            |                                   |
|     ingredients.                  |                                   |
+-----------------------------------+-----------------------------------+

#  Section II. Exporter Business Tips 

The following are a number of thoughts, collected from a variety of
sources, on exporting food products to Thailand. Some are obvious, but
warrant repeating, while some you may never have considered. They are
organized under three topics: communicating, meeting, and exporting. We
hope these suggestions will prove useful in your efforts to build food
exports to Thailand.

######### Communicating

-   When greeting a Thai, use the word Khun (pronounced coon) in place
    of \"Mr.\" or \"Mrs.\" and the person's first name, which is listed
    first on his or her business card. For example, a Westerner with the
    name \"Peter Moore\" would be called \"Khun Peter\". Among Thais,
    family names are not usually used. Most Thais refer to each other by
    their first names only. Never refer to yourself with the word Khun;
    simply say your first name. Thais will probably address you by using
    \"Mr.\" or \"Mrs.\" and your first name.

-   Introductions: foreign companies may write directly to Thai
    companies, although personal introductions will always enhance a
    firm's credibility and acceptance.

-   Most Thais greet someone by bowing slightly towards them while
    bringing the hands pressed together in a praying position between
    the chest and forehead. The exact location of the hand depends on
    the level of respect being offered ---- the height and depth of a
    person's bow indicates social status. This gesture, known as a
    \"wai\", can be used when greeting someone on arrival and departure,
    and also when saying, \"I am sorry\" or \"thank you.\" There is no
    need to wai taxi drivers, secretaries, clerks, and other support or
    service people.

-   It would behoove foreign businesses to hire a representative or
    agent with local connections, especially if they intend to buy from
    or sell to Thailand. Assess any local representative or partner's
    political relationship, as the government is still very much
    involved in the private sector. Networking with government officials
    and/or correct authorities can be the key to doing business
    successfully, especially if your firm intends to do a major project.
    Although a local representative is often the best choice, monitor
    your representative closely and require measurable performance.

-   Keep in mind that in most of Asia that dates are shown in
    day/month/year format, ex. 05/12/06 means December 5, 2006. To avoid
    confusion, you may want to use the full date in correspondence.

-   Have some fun and try to learn a few words of the local language,
    especially social greetings. This shows to all your interest in the
    country.

######### Meetings

-   Avoid business visits during the New Year Festivals (both the
    Chinese and Thai ones).

-   Heavy traffic is the most common excuse for tardiness.

-   Business cards are always exchanged at the first meeting. It is
    important to carry a sufficient quantity; failure to offer a
    business card may make Thais suspicious of your position and
    authority. Be sure your card indicates your position and
    responsibility. And be sure to have your personal information in
    Thai on the back of the card. Don't throw or slide your card.

-   Begin initial meetings with casual conversation on such topics as
    your travels, the beauties of Thailand, possibly questions about
    your counterpart's overseas experiences.

-   Avoid topics relating to politics, the royal family, and religion. A
    little praise of the country and the Thai people goes a long way.

-   Never touch or point with your feet. It is consider rude to cross
    your legs and point your feet at someone. Thais place a great
    importance on appearance and politeness.

#########  Exporting

-   It is essential to visit the market to conduct market research,
    especially for product testing, price comparisons, and for reviewing
    export statistics of the last 3-5 years.

-   Localize your products: adjusting the product for local tastes,
    verifying consumers' preferences and setting your products' price to
    be very competitive.

-   U.S. exporters should locate the best distribution channel (e.g.
    local importers, distributors, supermarkets, retailers, etc.) and
    establish a good relationship with them, as they are very useful in
    facilitating and promoting exports of U.S. consumer-ready foods to
    Thailand.

-   Trade fair participation is another way to raise awareness of your
    product.

-   In Thailand, some large manufacturers and retailers import raw
    materials or products directly while medium, small manufacturers,
    retailers, as well as hotels, prefer to purchase products from local
    importers. But there are exceptions to this rule.

-   Successful U.S. exporters must provide reliable product
    availability, consistently supplying a quality product, technical
    support, information support, and accurately responding to inquiries
    within 24 hours as Australia and New Zealand are just a phone call
    away in a similar time zone.

-   Understand that there is likely only one decision-maker in a
    company, and that person often is not the purchasing manager.

-   Product Registration: Applications for product registration should
    be submitted to the Food Control Division, FDA. The approximate
    amount of time required for product registration, starting from
    submitting the application, is about one month. However, delays are
    usually caused by inaccurate or unacceptable details in the
    documents. There is little chance for licensing a product unless the
    manufacturer or exporter provides the necessary details required by
    the FDA.

-   The product should be packed and shipped for a tropical climate and
    have clear storage instructions. This is especially important, as
    few cold storage or air-conditioned facilities and delivery trucks
    exist.

-   When introducing new products, several factors should be kept in
    mind. Thai consumers from middle to upper income groups have an
    aversion to low quality products and are attracted to branded
    products. They also tend to be image conscious. Existing brand
    loyalties are most likely to be broken by new products that are of
    good quality, well packaged, distributed, promoted and competitively
    priced, rather than cheap products.

-   Be patient and think long term. It is not unusual to visit the
    market 2-3 times before details are finalized.

-   Study the most recent Food and Agriculture Import Regulations and
    Standards (FAIRS) Report for Thailand. This concise document -
    covering food laws, labeling requirements, food additive
    regulations, pesticide and other contaminants, import procedure and
    other key regulations, requirements and specific standards-should be
    required reading for all exporters and is available on the internet
    at http://www.fas.usda.gov/

-   Contact, after reviewing the foregoing, the Foreign Agricultural
    Service in the U.S. Embassy, Bangkok (agbangkok@fas.usda.gov) with
    any remaining questions on issues such as standard, tariffs,
    regulations, labeling, and other concerns.

#  Section III. Market Sector Structure & Trends 

According to Euromonitor, one notable trend is the large proportion of
consumer expenditure on retail food compared to food service sector. The
retail market share of consumer expenditure accounts for more than 70
percent of total food spending, while consumers are allocating a lower
proportion of their expenditures to food service (30 percent). This
reflects a general tendency among Thais to cook at home rather than dine
out, particularly among residents living in rural areas. This coincides
with a preference among consumers for traditional cooking methods and
authentic styles of cuisine. An increase in eating out and patronizing
restaurants in specially prominent among the younger generation, as well
as working professionals, as it is more convenient and efficient than
cooking at home. Some people rarely cook at home, as they can buy foods,
which are cheaper, more acceptable to the family and more varied than
they could make themselves. Furthermore, the increasing number of food
establishments in the market also resulted in a considerable increase in
food service.

Tourism is Thailand's second-biggest source of foreign currency revenue
after exports, accounting for 6 percent of GDP. In 2005, tourists in
Bangkok and Chiangmai spent about 25-30 percent on shopping activities
-- the largest share. In general, low cost products, unique Thai
traditional products, and in particular different retail concepts
ranging from department stores to large-scale flea markets attract
tourists. Accommodation expenditure constituted a significant 25 percent
share for other major tourist expenses. In 2007, Thailand will focus on
the "Thailand Unforgettable" as the tourism promotion campaign and it is
expected to bring in about 14.7 million international tourists into the
country.

![](media/image4.wmf){width="5.998611111111111in"
height="2.0069444444444446in"}![](media/image5.wmf){width="5.995833333333334in"
height="2.1756944444444444in"}

## Retail Sector 

Thailand's retail trade sector is a vital component of the Thai economy
accounting for a 15 percent share of GDP. Thailand\'s retail sector
experienced a rapid increase in new investments from both local and
foreign players since 2003 despite economic uncertainty. Driven by its
hypermarkets and convenience stores, Thailand is the second most dynamic
retail market in Asia after China. According to AC Nielsen, about an 8
percent increase in sales for the Thai retail sector is expected and 10
percent of sales has passed through convenience store channel. Half of
all urban shoppers visit a convenience store on a weekly basis, with an
average number of visits about 2-3 times per week.

Multinational retailers have dominated Thailand's modern food retail
market with continued aggressive store expansion in 2000-2002,
especially in the hypermarket segment. The majority of these investments
have come from the leading international retail chains: UK-based Tesco
with its Tesco Lotus stores, Big C Supercenter of Casino
Guichard-Perrachon SA of France, Carrefour of France, and
Netherlands-based Makro. About 90 percent of urban Thai shoppers use
hypermarkets at least once a month. In 2005, the average Thai consumer
spent is about \$122 per month on retail products, of which 49 percent
has been spent on fresh food. These modern trade companies, especially
the larger firms, represent excellent opportunities for U.S. exporters
of consumer food items. Intense competition in the retail market,
particularly from these large-scale modern trades who use price
strategies and loan extensions to low-income consumers, led to the
closure of many traditional stores. As a result, the retail market
structure continually changes, with modern retailers such as
hypermarkets, supermarkets and convenience stores continuously gaining
market share and traditional retailers gradually losing their position.

Since the beginning of 2003, hypermarket expansion in Bangkok is
experiencing decelerating growth, given the fewer new hypermarket
construction projects underway. This is due to the difficulty in
locating new business opportunities/areas for further store expansion.
It is projected that retail business competition in the future will be
more in the form of innovative channels to meet consumer demand;
branches to cover more areas, and searching for newer and better
products to offer to customers. In addition, the flow of local shoppers
has been diverted from department stores, wet markets and grocery stores
to hypermarkets and supermarkets. Therefore, supermarkets and
hypermarkets are the best method of entry for U.S. exporters to enter
Thailand's retail food market and offer a variety of quality products at
competitive prices to satisfy Thai customers' desires.

Large convenience store chains like CP's 7-Eleven are recommended for
selected foodstuffs. The CP group is redesigning 7-Eleven outlets to
focus more on food products by raising the number of food items to be 90
percent of total products, up from 70 percent, or 1,700 items at
present. It is estimated that by the end of 2006, the number of 7-Eleven
stores in Thailand will reach 3,750. The main factors U.S. exporters
should consider for U.S. food products are pricing, shelf life of the
product, and customer preferences. The traditional 'Mom and Pop' stores
and wet markets in Thailand are not ideal entry points for U.S.
exporters as price sensitivity and preferences for traditional diets by
the end consumers in this sector are not a good match. U.S. exporters
should be aware that many U.S. branded food products such as snack
foods, candy, chocolate and breakfast cereals are present in the market
as locally or regionally produced food products. The ASEAN Free Trade
Area (AFTA) is one of the major factors contributing to shift in
manufacturing bases.

Most of the supermarkets and hypermarkets in Thailand have their own
house brands for ready-to-eat foods, ready-to-cook prepared foods,
home-made bakery items, TV dinners, sausages, water, cooking oil, rice,
sauces, cereals, dairy products and fruit juice. Thai consumers are
moving toward these house brand items for some particular products due
to their cheaper prices, especially food items when they cannot
differentiate the products' value - especially items such as sugar, fish
sauce, bottled water, etc. There is high opportunity for the private
label products to grow in this market since the market share of private
label products is only 1 percent compared to its 18 percent growth rate.
Almost hypermarket and supermarkets also provide space for fast food
outlets, kiosks, a laundry, a florist, bookstores, a photographic store,
movie rental stores and restaurants. They also have their own
distribution centers to ensure product freshness and operation
efficiency.

**Entry Strategy -- Supermarkets, Hypermarkets and Cash and Carry**

The best method for U.S. exporters to sell to supermarkets, hypermarkets
or cash and carry is to directly contact supermarkets, discount stores,
hypermarkets, and cash and carry, which import direct, and to contact
importers and distributors. U.S. exporters should be aware that many
multinational retailers in Thailand charge listing fees or a listing
allowance for new products. The fee will be charged in accordance with a
formula based on the number of retail outlets and SKU (stock keeping
unit).

**\
Distribution Channels - Supermarkets, Hypermarkets and Cash and Carry**

The distribution channel to supermarkets, cash and carry, and
hypermarkets in Thailand normally begins with importers and goes to
distributors, then to a central warehouse or direct to retail outlets.
The foodstuffs will be kept either in the importers' warehouse,
distributors' warehouse, or a central warehouse before delivery. Some
supermarkets, superstores and hypermarkets operated by multinational
operators import food products directly and keep them at their own
distribution centers before delivery to each outlet.

**Entry Strategy - Convenience Stores, Gas Marts & Kiosks**

The best method for U.S. exporters to enter this Thai market segment is
to contact the head office of convenience stores, gas marts and kiosks.
U.S. exporters should be aware of the listing fee or listing allowance
that may be charged by large convenience store chains. The fee will be
charged in accordance with a formula based on the number of outlets and
SKU.

U.S. branded food sold in these C-stores is generally produced in
Thailand or in neighboring Southeast Asian countries. This group of
products includes snack foods, chocolates, cookies, candies, gums and
breakfast cereal. Distributors import U.S. branded food from neighboring
countries rather than from the United States because of the low cost and
AFTA preferential tariffs. Trends in the sales of imported food for
C-stores versus locally produced will decrease gradually from five to
zero percent, in line with the purchasing power of the target group.
U.S. products will be well received by Thai consumers in C-stores if
price and quality is similar to what local suppliers offer.

**Distribution Channels - Convenience Stores, Gas Marts & Kiosks**

A common distribution channel to convenience stores, gas marts and
kiosks flows from U.S. exporters to U.S. consolidators and traders to
Thai distributors to C-stores, gas marts and kiosk distribution centers.
Some Thai distributors distribute foodstuffs directly to C-stores, gas
marts and kiosk outlets. Most of the foodstuffs that are distributed
directly to the outlets are fresh, including baked goods and dairy
products. The flow pattern of different retailers varies depending on
the sales volume and number of outlets. A key ingredient in the success
of the larger retailers is control of their own distribution centers.

**Entry Strategy - Traditional Markets**

For U.S. exporters, Thai traditional wet markets are more difficult
markets to enter considering the expected purchase price of products,
low consumer purchasing power, the size and traditional distribution
channels of the outlets, and consumer preference for traditional Thai
and Chinese food.

**Distribution Channels - Traditional Markets**

Usually local manufacturers will have their own distributors to
distribute their products. Some local producers are under supervision of
a Royal Project in which assigned distributors manage the distribution.

**Best Market Prospects**

The best market prospects for U.S. suppliers include breakfast cereal,
frozen seafood (scallop, lobster, fish, mussel), fruit juices, instant
and ground coffee, jam, nuts (walnuts, hazel nuts, macadamia nuts),
canned soup and fruits, candy, chocolate, chocolate milk mix, dairy
products (cheese, cheese spread, cream cheese, whipped cream, cheese
sticks, cheese dip and ice-cream), dips, fresh fruits (cherries, grapes,
peach, plums, nectarine, berries, grapefruit, apples), frozen pizza,
frozen peas, pie fillings, frozen processed turkey, dried fruits, red
meat, American spices, seasonings and sauces, snack foods, syrup,
vinegar, wine, spirits and pet food.

The best selling U.S. food products are U.S. beef, U.S. Turkey, fresh
fruits (cherries, grapes, and WA apples), frozen French fries, scallops,
snack foods, breakfast cereal, wine, dried fruits, and pet foods.
Products that are not currently present in the market in significant
quantities but have good sales potential are American bourbon and
whisky, seafood including Alaska King crab legs, halibuts and other
fishes, fruit juices, biscuits, candy, peaches, pears, plums,
nectarines, chocolate milk mix, cheese, dip sauce, other cooking
products.

**Further Information**

Further information on this area is available in A Market Brief on
Thailand's Retail Food Sector Report, which can be obtained from the FAS
homepage at [http://www.fas.usda.gov](http://www.fas.usda.gov/)

##  HRI Food Service Sector 

Thailand's large HRI food service sector comprises approximately 150,000
outlets including some 100,000 restaurants and more than 5,000 hotels
and resorts. Hotels, resorts, restaurants and institutional contracts
are the heavy users of imported food for food preparation and
ready-to-eat meals at restaurants, catering services for airlines and
cruise lines. This is because this sector attracts middle to higher
income Thais, Thai corporate businessmen, resident expatriates, and
tourists. Thailand tourism is an important component of the service
sector that generated approximately 406.5 billion Baht (\$10 billion)
revenue in 2005. This industry is one of the key factors, which provided
the engine power for Thailand's quick economic recovery. For the entire
year of 2005, the international tourist arrivals to Thailand totaled
11.4 million, down by 2.5 percent and the average hotel occupancy rate
was at 60.6 percent, down from 63.5 percent in previous year.

![](media/image6.wmf){width="5.872916666666667in"
height="1.7402777777777778in"}

Food and beverage sales of hotels and resorts accounts for about 30
percent of total revenues. The average rate of imported food versus
locally produced food in the entire HRI sector is 30 percent; the U.S.
has approximately 15-20 percent of the imported product share. U.S.
beef, seafood (lobster, Alaska king crab legs, scallops, etc.), wines,
potato, seasonings, etc are well known in the hotel/restaurant trade,
and with airline catering companies. Thai Airways International uses
30-40 percent imported food in their in-flight catering service.

General restaurants have been replaced by chains of restaurants such as
Oishi, Fuji, Zen, S&P, Black Canyon, MK Suki, Grayhound, etc. Sidewalk
restaurants have been continually replaced by food centers and food
courts, which are more hygienic and more convenient. Food centers and
food courts can be seen in most of the department stores and office
buildings. Fast food and chain restaurants have boomed for the last few
years and are expected to continue to do so for the next few years. Hot
and cold drinks including coffee and ready-to-eat foods are served in
convenience stores and stand alone outlets.

![](media/image7.wmf){width="4.691666666666666in" height="0.88125in"}

The consumption of alcohol beverages continued to rise even though the
government has tried to launch many campaigns against drinking behavior
including the limit of duration for the sale of liquors. The proportion
of young people, aged between 15-24 years old, drinking alcoholic
beverages, increased from 21.6 percent in 2001 to 23.5 percent in 2004.
Nevertheless, there is a decrease in consumption of alcoholic beverages
for the people in other ages.

**Entry Strategy**

Direct contact with local food service importers is the best entry for
U.S. exporters. Normally the hotels and resorts do not import food
directly. It is easier for hotels and resorts to order from food service
companies because they have specialized in providing high quality U.S.
products to the five-star hotel and restaurant industry. Restaurants
such as fast food chains or family style restaurants, also order and
purchase imported food from food service companies or from their
affiliate companies who act as their distributors. Five star hotels and
resorts are highly recommended for U.S. exporters. International food
restaurants located in prime areas of Bangkok, Phuket, Hua Hin, Krabi,
Chiang Mai, Samui Island and Pattaya are secondary recommendations for
U.S. exporters. Direct contact with Thai Airways International's
catering department is also recommended.

**Best Market Prospects**

Best market prospects for U.S. suppliers include U.S. beef, turkeys,
seafood such as U.S. fish (halibut, king salmon, cod), Alaska king crab,
scallop, mussels, and oysters; spices, seasonings and sauces; baking
products, canned foods (soup, fruit and vegetables), dairy products
(cheese, cheese spread, cream cheese, whipped cream, sour cream, cheese
dip, ice-cream, dips), fresh fruits and vegetables (radish, celery,
carrots, apples, grapes, cherries, avocados, blueberries, grapefruit,
oranges), frozen berries, pie fillings, frozen peas, fruit juice (apple,
prune, orange, grape, sparkling white grape), jam and jelly, nuts
(walnuts, hazel nuts, macadamia nuts), dried fruits, pickles,
ready-to-mix pancakes, cookies, muffins and cake, syrup, vinegar, wine
and whisky.

##  Food Processing Sector 

Thailand has become one of the leading food producers in the world and
is the largest food exporter among all Southeast Asian countries. There
are over 10,000 food-processing companies in Thailand, the majority (80
percent) of which are small sized establishments and cottage industries.
Currently, Thailand is among the top food-exporting countries in the
world. Reflecting Thailand's state of economic development, the average
household spending on food & beverages is in-between that of the
Philippines (around 40 percent) and Singapore (around 13 percent). The
total value of spending on food & beverages will rise by an average of
more than 7 percent a year, from an estimated \$26 billion in 2004 to
\$38 billion in 2009.

The country is a leading supplier of a wide variety of commodities
and/or products including rice, rubber, cassava, sugar, seafood, poultry
meat, frozen, ready-to-eat foods, and fresh hand processed fruits and
vegetables. Thailand's food processing sector is heavily export-oriented
with more than 50 percent of production sold outside the country.
Approximately 67 percent of exports are processed seafood products. Thai
food processors import large quantities of food ingredients for the food
processing industry, which are not available locally.

Although domestic ingredients hold the greatest share of the market,
these items tend to be low-value, high-volume raw and semi-processed
products such as grains, vegetable oils, and starches. Higher value and
more technology-based ingredients are generally not available locally
and must be imported. The food ingredient market is growing continuously
due to increases in population and in purchasing power; increases in the
number of dual income families; and new product development.

Followings are some general characteristics of the Thai food processing
industry:

-   Thailand's food processing industry has been developing at a rapid
    pace throughout the past decade despite suffering a slight setback
    during the 1997-1998 crisis. The Thai processed food sector is one
    of the most developed in South East Asia. Its main products are
    frozen shrimp, sugar, poultry, canned tuna, confectionery and
    snacks, canned pineapple and tapioca.

-   The Thai market for raw materials is growing. Thai companies
    primarily supply raw inputs to the food-processing sector.
    Nevertheless, the import market for these ingredients has been
    growing continuously. The growth in demand for raw materials is due
    to the increased localized production of processed products that are
    in high demand and are expensive to ship long distances;

-   Many Thai retail stores are modernizing and increasing their
    capacity in the refrigerated and frozen foods sections. In addition,
    modern logistics and technology are being introduced by
    multinational retail chains to the market;

-   Major retail chains purchase directly from processed food producers;

-   Increased local production of some traditionally imported foods.
    Snack food, salad dressings, sauces, jams and other processed foods
    that are relatively inexpensive but have high freight costs will be
    increasingly produced locally;

-   An increase in the trend of using imported ingredients for
    innovative products;

-   A move toward higher quality ingredients. There are some companies
    moving towards using better quality ingredients instead of
    ingredients chosen on the sole basis of cost;

-   High investment in capital equipment, improvements in food
    technology, more stringent sanitary requirements, marketing
    innovations, and Thai exports of finished food products all have
    contributed to the increasing demand for food ingredients. Major
    food exporters have expanded their production capacity through new
    machinery purchases or upgrades to meet demand for a variety of
    products in the major markets and to satisfy international quality
    standards including HACCP and ISO;

-   There is a rising awareness of the benefits of healthy foods. In
    light thereof, natural ingredients are playing an increasingly
    important role. Nonetheless, some food processors still prefer
    synthetic chemicals due to the limitations of natural ingredients,
    e.g. shelf life, consistency, quality of taste, color etc.

Fish and seafood, dried fruits, soybean, milk products, cereals, fat and
oils, starches and derivatives, fresh fruit and vegetable products, and
coloring were the leading volume imported food ingredients in Thailand.
The larger food processors tend to be the ones, which are more
export-oriented, their major markets being Japan, the U.S. and the EU.
Accordingly, Thailand must produce products of a quality necessary to
meet international standards.

Thailand's processed food exports have been increasing continuously, due
to a number of factors: the government's efforts to improve the quality
of local industries' output to export quality; the processed food
sector's efforts to raise quality and sanitation standards; and the
introduction of new, ready-to-cook products, mainly for the Japanese and
EU markets. Domestic processed food consumption continues to grow,
following the increase in Thailand's population, accompanied by a higher
proportion of processed food and beverages consumed as income and
lifestyles change.

Although domestic ingredients hold the largest share of the market, at
the moment, these items tend to be low value, high volume, raw and
semi-processed products such as grains, vegetable oils, and starches.
Higher value and further processed products are generally not available
locally and must be imported. All this expected expansion in the food
processing industry should provide many export opportunities for U.S.
exporters of food ingredients in the medium- and long- term as this
market segment continues to expand.

The Thai food and beverage manufacturing industry has a broader base
than many other Southeast Asian food and beverage manufacturing
industries. Most of the major Thai food processing companies are also
involved in exporting their products to overseas markets. Several trends
are influencing the type and quality of inputs used in processed foods:

-   Thailand's open trading environment has stimulated the extensive use
    of imported ingredients by the local food processing industry. This
    has enabled the industry to experiment and introduce a wide range of
    new processed products to the market, e.g. prepared frozen foods,
    processed meats, and new age beverages;

-   Thai people have an increased awareness about their health and
    nutrition. Macrobiotic foods, vegetarian foods, and health foods
    have become popular in recent years. Although the scope of the
    healthy foods business is smaller and less advanced compared to
    Western countries, Thai consumers are steadily becoming more
    health-conscious and demanding more flavor-intensive convenient
    health foods;

-   Changes in the retail sector have driven changes in the processing
    sector. The trend in the retail sector is away from small grocery
    stores and towards supermarkets and hypermarkets. Currently there
    are approximately over 700 branches of supermarkets and hypermarkets
    in Thailand. Consumer expectations have also changed significantly.
    Faced with an increasingly diverse range of products, quality and
    price, consumers have become more demanding. In response to
    increasing consumer expectations, large food retailers, especially
    international companies, are demanding that Thai food manufacturers
    meet higher quality standards;

-   The rapid change in consumption patterns has led Thai food
    processors to begin investing in ready-to-eat meals and frozen food
    products;

-   The snack foods industry is also benefiting from the trend toward
    Western foods and more entertainment and tourist centers throughout
    the country. The increasing popularity of mini-marts and convenience
    stores are the driving force in the snack foods market. There are
    over 15 large manufacturers of snack foods in Thailand and a large
    number of small firms supply snacks to the local market. Several of
    the larger manufacturers are increasing exports to other Asian
    countries, Europe and the U.S.;

-   The snack market is becoming increasing competitive. Therefore, the
    snack manufacturers have to differentiate their products by
    introducing innovative flavouring, especially for potato chips and
    rice crackers. In addition, consumers are increasing their rate of
    snack consumption, while trying new snack tastes and varieties.

-   Thailand's seafood processing sector is the fourth largest in Asia
    after Japan, China, and India. More than 90 percent of its output is
    bound for export markets, so continual improvements in production
    quality are being made to maintain and expand demand. Canned and
    frozen products account for 80 percent of the output. The leading
    products are canned tuna, frozen prawns, squid, and assorted fish.

**Entry Strategy**

The most effective way for U.S. food ingredients exporters to enter the
Thai market is either appoint a reputable and experienced local
importer/distributor or contact directly to the food manufacturers.
Local firms usually have a good understanding of the market and know how
to make direct contact with food manufacturers, government officials and
other key contacts. A good local importer/distributor can also provide
valuable support in arranging meetings with the manufacturers especially
their R&D and manufacturing divisions, translating technical
information, and help arrange other marketing and sales activities.
Trade shows are also highly effective ways to promote new food
ingredient products. Food Ingredients Asia, which will be held in
Thailand again in 2007, is usually well attended by Thai and neighboring
country food companies.

U.S. market development cooperators are also active in Thailand and
other Southeast Asia countries. These groups offer many marketing
opportunities for U.S. firms, including trade team visits, technical
seminars, local promotional events, and other activities. Cooperators
with active programs in Thailand and other regional countries include
the U.S. Grains Council, U.S. Meat Export Federation, U.S. Poultry & Egg
Export Council, U.S. Dry Pea and Lentil Council, U.S. Dairy Export
Council, California Raisin Administrative Committee, U.S. Wheat
Association, American Soybean Association, U.S. Potato Board, various
U.S. fruit and nut associations, as well as several state and regional
groups such as WUSATA, EUSAFEC, SUSTA, and Food Export Association of
the Midwest USA.

**Best Market Prospects**

The best market prospects for food processing include dried fruit and
nuts, wheat, maize, dehydrated potatoes, soybeans, food chemicals and
additives, flavorings, starch, meat, whey, skim milk powder, juice
concentrates and other baking ingredients.

**Distribution System**

Food processing generally is distributed through two main channels. The
first is via traditional importers, who re-sell to local distributors or
distribute through their own marketing and delivery network to
end-users. As Thailand's food processing industry has grown and become
more sophisticated over the past decade or more, food manufacturers are
increasingly importing directly from foreign supplies. This is
especially true for large, integrated food processors, which export many
of their products and are well oriented to international trade.

**Further Information**

Further information on this area is available in A Market Brief on
Thailand's Food Processing Sector Report, which can be obtained from the
FAS homepage at http://www.fas.usda.gov

![](media/image8.wmf){width="7.75in"
height="5.788194444444445in"}**Section IV. Tariff**

**\
**

# Section VI. Key Contacts & Further Information

**A) U.S. Department of Agriculture, Foreign Agricultural Service**

The Foreign Agricultural Service in Bangkok maintains up-to-date
information covering food and agricultural import opportunities in
Thailand and would be pleased to assist in facilitating U.S. exports and
entry to the Thai market. Questions or comments regarding this report
should be directed to following:

+-----------------------------------+-----------------------------------+
| **Local:**                        | **U.S. Mail:**                    |
|                                   |                                   |
| Office of Agricultural Affairs    | Office of Agricultural Affairs    |
|                                   |                                   |
| U.S. Embassy                      | U.S. Embassy, Box 41              |
|                                   |                                   |
| 120-122 Wireless Road             | APO AP 96546                      |
|                                   |                                   |
| Bangkok 10330 Thailand            | Key Contact(s):                   |
|                                   |                                   |
| Tel: +662-205-5106                | Gary W. Meyer, Agricultural       |
|                                   | Counselor                         |
| Fax: +662-255-2907                |                                   |
|                                   | Corey Pickelsimer, Agricultural   |
| E-mail: agbangkok@usda.gov        | Attaché                           |
|                                   |                                   |
| Website: www.usdathailand.org     |                                   |
+-----------------------------------+-----------------------------------+

**B) Cooperators**

Contact any of the many U.S. non-profit organizations, representing U.S.
agricultural products and exporters and do market development activities
to promote the various U.S. commodities and high value products in
Thailand and other Asian markets. Please note: some of these
organizations are located in Thailand and others in neighboring
countries such as Singapore have regional responsibilities.

+-----------------------------------+-----------------------------------+
| **U.S. Dairy Export Council**\    | **U.S. Dry Pea & Lentil           |
| Southeast Asian Representative    | Council**\                        |
| Office                            | AgriSource Co.,Ltd.               |
|                                   |                                   |
| Pacrim Associates Limited         | No. 416, 4 th Fl., Ambassador's   |
|                                   | Court                             |
| 11/14 Soi Ruam Rudee              |                                   |
|                                   | 76/1 Soi Langsuan                 |
| Wireless Road                     |                                   |
|                                   | Ploenchit Road                    |
| Bangkok 10330                     |                                   |
|                                   | Bangkok 10330                     |
| Tel. (662) 689-6311               |                                   |
|                                   | Tel. (662) 251-8655/6, 251-8669,  |
| Fax (662) 689-6314                | 251-8772                          |
|                                   |                                   |
| E-mail:                           | Fax (662) 251-0390                |
| usdec@pacrimassociates.com        |                                   |
|                                   | E-mail: agsource@loxinfo.co.th    |
+-----------------------------------+-----------------------------------+
| **American Soybean Association**\ | **USA Poultry & Egg Export        |
| Thailand Representative           | Council\                          |
|                                   | **#15-04 Liat Towers              |
| 59/43 Baan Klangmuang             |                                   |
|                                   | 541, Orchard Road                 |
| Ladprao 71 Road                   |                                   |
|                                   | Singapore 238881                  |
| Bangkok 10230                     |                                   |
|                                   | Tel: 656-737-1726                 |
| Tel. (662) 539-5373, 539-5332     |                                   |
|                                   | Fax: 656-737-1727                 |
| Fax (662) 539-5256                |                                   |
|                                   | E-mail:                           |
| E-mail: asathai@loxinfo.co.th     | usapeec_sing@pacific.net.sg       |
+-----------------------------------+-----------------------------------+
| **U.S. Meat Export Federation**\  | **U.S. Wheat Associates**\        |
| #15-03 Liat Towers                | #15-02 Liat Towers                |
|                                   |                                   |
| 541 Orchard Road                  | 541 Orchard Road\                 |
|                                   | Singapore 238881                  |
| Singapore 238881                  |                                   |
|                                   | Tel: 656-737-4311                 |
| Tel: 656-733-4255-6               |                                   |
|                                   | Fax: 656-733-9359                 |
| Fax: 656-732-1977                 |                                   |
|                                   | E-mail: msamson@uswheat.org       |
| E-mail: singapore@usmef.com.sg    |                                   |
+-----------------------------------+-----------------------------------+
| **Wine Institute of California**\ | **United States Potato Board**\   |
| Block 3 Alexandra Distripark      | Block 3 Alexandra Distripark      |
|                                   |                                   |
| Unit 08-22 Pasir Panyang Road     | Unit 08-22 Pasir Panyang Road     |
|                                   |                                   |
| Singapore 118383                  | Singapore 118383                  |
|                                   |                                   |
| Tel: 656-278-3832                 | Tel: 656-278-3832\                |
|                                   | Fax: 656- 278-4372                |
| Fax: 656- 278-4372                |                                   |
|                                   | E-mail: Richelieu@lieumktg.com.sg |
| E-mail: Richelieu@lieumktg.com.sg |                                   |
+-----------------------------------+-----------------------------------+
| **Pear Bureau Northwest\          | **Raisin Administrative           |
| **Block 3 Alexandra Distripark    | Committee**                       |
|                                   |                                   |
| Unit 08-22 Pasir Panyang Road     | Block 3 Alexandra Distripark      |
|                                   |                                   |
| Singapore 118383                  | Unit 08-22 Pasir Panyang Road     |
|                                   |                                   |
| Tel: 656-278-3832                 | Singapore 118383                  |
|                                   |                                   |
| Fax: 656- 278-4372                | Tel: 656-278-3832                 |
|                                   |                                   |
| E-mail: Richelieu@lieumktg.com.sg | Fax: 656- 278-4372                |
|                                   |                                   |
|                                   | E-mail: Richelieu@lieumktg.com.sg |
+-----------------------------------+-----------------------------------+
| **California Pistachio            | **Washington Apple Commission**\  |
| Commission\                       | 208 Ram-Inthra Soi 19, Ram-Inthra |
| California Table Grape            | Road\                             |
| Commission\                       | Bankhen, Anusao-waree\            |
| California Tree Fruit Agreement** | Bangkok 10220, Thailand\          |
|                                   | Tel. 662-521-2170\                |
| Block 3 Alexandra Distripark      | Fax. 662-970-8208\                |
|                                   | E-mail: pt@waapples.com           |
| Unit 08-22 Pasir Panyang Road     |                                   |
|                                   |                                   |
| Singapore 118383                  |                                   |
|                                   |                                   |
| Tel: 656-278-3832                 |                                   |
|                                   |                                   |
| Fax: 656- 278-4372                |                                   |
|                                   |                                   |
| E-mail: Richelieu@lieumktg.com.sg |                                   |
+-----------------------------------+-----------------------------------+
| **Northwest Cherry Board**\       |                                   |
| 208 Ram-Inthra Soi 19, Ram-Inthra |                                   |
| Road\                             |                                   |
| Bankhen, Anusao-waree\            |                                   |
| Bangkok 10220, Thailand\          |                                   |
| Tel. 662-521-2170\                |                                   |
| Fax. 662-970-8208\                |                                   |
| E-mail: pt@waapples.com           |                                   |
+-----------------------------------+-----------------------------------+

**\
D) American Chamber of Commerce in Thailand**

The American Chamber of Commerce in Thailand serves as point of contact
and exchange for members of the American business community, it also
serves as a valuable resource of information and interaction for
members. The Chamber has an active Food & Agribusiness Committee, which
represents the interests of Chamber member firms on issues concerning
food, agriculture, and agribusiness. The Committee also aims to promote
dialogue on these issues between the American food and agricultural
community and Thai decision-makers in the public and private sectors.

+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
| 7 th Fl., GPF Witthayu (Old       | Key Contact(s):\                  |
| Diethelm Building) Tower A        | Judy Benn, Executive Director     |
|                                   |                                   |
| 93/1 Wireless Road,               |                                   |
|                                   |                                   |
| Lumpini, Pathumwan,               |                                   |
|                                   |                                   |
| Bangkok 10330                     |                                   |
|                                   |                                   |
| Tel. (662) 254-1041               |                                   |
|                                   |                                   |
| Fax (662) 251-1605                |                                   |
|                                   |                                   |
| E-mail: info@amchamthailand.com   |                                   |
+-----------------------------------+-----------------------------------+

**E) Thai Government\
**These are the major regulatory government agencies that deal with food
and agricultural products.

**Food & Drug Administration, Ministry of Public Health**

+-----------------------------------+-----------------------------------+
| **Import License, Product         | **Food Products from Animals**    |
| Registration\                     |                                   |
| & Label Approval**                | Tivanont Road, Muang              |
|                                   |                                   |
| Food Control Division             | Nonthaburi 11000                  |
|                                   |                                   |
| Tivanont Road, Muang              | Tel. (662) 590-7207/8             |
|                                   |                                   |
| Nonthaburi 11000                  | E-mail: food@fda.moph.go.th       |
|                                   |                                   |
| Tel. (662) 590-7178               |                                   |
|                                   |                                   |
| Fax (662) 591-8460                |                                   |
|                                   |                                   |
| E-mail: food@fda.moph.go.th       |                                   |
+-----------------------------------+-----------------------------------+
| **Food Products from Plants**     | **Chemicals and Food Additives**  |
|                                   |                                   |
| Tivanont Road, Muang              | Tivanont Road, Muang              |
|                                   |                                   |
| Nonthaburi 11000                  | Nonthaburi 11000                  |
|                                   |                                   |
| Tel. (662) 590-7023               | Tel. (662) 590-7209, 590-7219     |
|                                   |                                   |
| E-mail: food@fda.moph.go.th       | E-mail: food@fda.moph.go.th       |
+-----------------------------------+-----------------------------------+
| **Food for Special Purposes and   | **Other Food Products**           |
| Food Supplement**                 |                                   |
|                                   | Tivanont Road, Muang              |
| Tivanont Road, Muang              |                                   |
|                                   | Nonthaburi 11000                  |
| Nonthaburi 11000                  |                                   |
|                                   | Tel. (662) 590-7220               |
| Tel. (662) 590-7205, 590-7098     |                                   |
|                                   | E-mail: food@fda.moph.go.th       |
| E-mail: food@fda.moph.go.th       |                                   |
+-----------------------------------+-----------------------------------+
| **Food Inspection**               |                                   |
|                                   |                                   |
| Inspection Division\              |                                   |
| Tivanont Road, Muang              |                                   |
|                                   |                                   |
| Nonthaburi 11000                  |                                   |
|                                   |                                   |
| Tel. (662) 590-7323               |                                   |
|                                   |                                   |
| Fax (662) 591-8477                |                                   |
|                                   |                                   |
| E-mail: food@fda.moph.go.th       |                                   |
+-----------------------------------+-----------------------------------+

+-----------------------------------+-----------------------------------+
| **Department of Medical Sciences, |                                   |
| Ministry of Public Health**       |                                   |
+-----------------------------------+-----------------------------------+
| **Food Analysis**                 |                                   |
|                                   |                                   |
| Food Analysis Division            |                                   |
|                                   |                                   |
| Department of Medical Sciences    |                                   |
|                                   |                                   |
| Soi Bumratnaradul Hospital        |                                   |
|                                   |                                   |
| Muang, Nonthaburi 11000           |                                   |
|                                   |                                   |
| Tel. (662) 951-0000 Ext. 9561     |                                   |
|                                   |                                   |
| Fax (662) 951-1023                |                                   |
+-----------------------------------+-----------------------------------+
| **Department of Foreign Trade,    |                                   |
| Ministry of Commerce**            |                                   |
+-----------------------------------+-----------------------------------+
| **Import Control**                | **Commodity Division**            |
|                                   |                                   |
| Commodity Trade Division          | Sanam Bin Nam-Nonthaburi Road     |
|                                   |                                   |
| Sanam Bin Nam-Nonthaburi Road     | Nonthaburi 11000                  |
|                                   |                                   |
| Nonthaburi 11000                  | Tel. (662) 547-4801               |
|                                   |                                   |
| Tel. (662) 547-4737               |                                   |
|                                   |                                   |
| E- mail: cdtdft@moc.go.th         |                                   |
+-----------------------------------+-----------------------------------+
| **Grain Division**                |                                   |
|                                   |                                   |
| Sanam Bin Nam-Nonthaburi Road     |                                   |
|                                   |                                   |
| Nonthaburi 11000                  |                                   |
|                                   |                                   |
| Tel. (662) 5474820                |                                   |
+-----------------------------------+-----------------------------------+
| **Department of Livestock,        |                                   |
| Ministry of Agriculture and       |                                   |
| Cooperatives**                    |                                   |
+-----------------------------------+-----------------------------------+
| **Animal Quarantine Inspection    | **Bangkok Seaport Animal          |
| Services**                        | Quarantine Station**              |
|                                   |                                   |
| Phyathai Road                     | Klong Toey Port                   |
|                                   |                                   |
| Bangkok 10400                     | Bangkok 10110                     |
|                                   |                                   |
| Tel. (662) 653-4444 Ext. 4110     | Tel. (662) 249-2112               |
|                                   |                                   |
| Fax (662) 653-4865                | Fax (662) 249-4358                |
|                                   |                                   |
| E-mail: dcontrol8@dld.go.th       |                                   |
+-----------------------------------+-----------------------------------+
| **Bangkok Airport Animal          |                                   |
| Quarantine Station**              |                                   |
|                                   |                                   |
| Suvarnabhumi Airport              |                                   |
|                                   |                                   |
| Bangkok                           |                                   |
|                                   |                                   |
| Tel. (662) 134-0731-2             |                                   |
|                                   |                                   |
| Fax (662) 134-0733                |                                   |
+-----------------------------------+-----------------------------------+

+-----------------------------------+-----------------------------------+
| **Department of Fisheries,        |                                   |
| Ministry of Agriculture &         |                                   |
| Cooperatives**                    |                                   |
+-----------------------------------+-----------------------------------+
| **Marine Animals**                |                                   |
|                                   |                                   |
| Chief of Fisheries Administration |                                   |
| & Management Section              |                                   |
|                                   |                                   |
| Fisheries Resources Conservation  |                                   |
| Division                          |                                   |
|                                   |                                   |
| Kasetsart University, Chatuchak   |                                   |
|                                   |                                   |
| Bangkok 10900                     |                                   |
|                                   |                                   |
| Tel. (662) 562-0600/15 Ext 3509   |                                   |
|                                   |                                   |
| Fax (662) 562-0528                |                                   |
|                                   |                                   |
| E-mail:                           |                                   |
| fishtradeins@dof.thaigov.net      |                                   |
+-----------------------------------+-----------------------------------+
| **Department of Agriculture,      |                                   |
| Ministry of Agriculture and       |                                   |
| Cooperatives**                    |                                   |
+-----------------------------------+-----------------------------------+
| **Plant Quarantine Subdivision**  |                                   |
|                                   |                                   |
| Agricultural Regulatory Division  |                                   |
|                                   |                                   |
| Chatuchak, Bangkok 10900          |                                   |
|                                   |                                   |
| Tel. (662) 940-6573, 940-6670     |                                   |
| Ext. 108                          |                                   |
|                                   |                                   |
| Fax (662) 579-4129                |                                   |
|                                   |                                   |
| E-mail: ard@doa.go.th             |                                   |
+-----------------------------------+-----------------------------------+
| **Excise Department, Ministry of  |                                   |
| Finance**                         |                                   |
+-----------------------------------+-----------------------------------+
| **License of Alcoholic            |                                   |
| Beverages**                       |                                   |
|                                   |                                   |
| License Subdivision               |                                   |
|                                   |                                   |
| Bureau of Tax Administration 1    |                                   |
|                                   |                                   |
| Excise Department                 |                                   |
|                                   |                                   |
| 1488 Nakhon Chaisri Road          |                                   |
|                                   |                                   |
| Bangkok 10300                     |                                   |
|                                   |                                   |
| Tel. (662) 243-0525               |                                   |
+-----------------------------------+-----------------------------------+
| **Department of Intellectual      |                                   |
| Property, Ministry of Commerce**  |                                   |
+-----------------------------------+-----------------------------------+
| **Application for Patent and      |                                   |
| Trademark**                       |                                   |
|                                   |                                   |
| **Services and Information        |                                   |
| Division**                        |                                   |
|                                   |                                   |
| Department of Intellectual        |                                   |
| Property                          |                                   |
|                                   |                                   |
| 338 Rachadapisek Road             |                                   |
|                                   |                                   |
| Huay Kwang, Bangkok 10320         |                                   |
|                                   |                                   |
| Tel. (662) 275-4854               |                                   |
|                                   |                                   |
| Fax (662) 276-0061                |                                   |
+-----------------------------------+-----------------------------------+
| **Customs Department, Ministry of |                                   |
| Finance**                         |                                   |
+-----------------------------------+-----------------------------------+
| **Import Formalities Division**   | **Legal Affairs Bureau**          |
|                                   |                                   |
| Klong Toey, Bangkok 10110         | Klong Toey, Bangkok 10110         |
|                                   |                                   |
| Tel. (662) 249-4266, 671-5250     | Tel. (662) 671-7560 Ext. 9310,    |
|                                   | 9311                              |
| Fax (662) 249-4297                |                                   |
|                                   | Fax (662) 671-7626                |
+-----------------------------------+-----------------------------------+

# 

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#  

# Appendix I. Statistics

## TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION

  -------------------------------------------------------- --------------
  Agricultural Imports From All Countries (\$Mil) / U.S.   \$3,813
  Market Share (%)                                         Mil/20%

  Consumer Food Imports From All Countries (\$Mil)/U.S.    \$1,146
  Market Share (%)                                         Mil/15%

  Edible Fishery Imports From All Countries (\$Mil) / U.S. \$1,364 Mil/2%
  Market Share (%)                                         

  Total Population (Millions) / Annual Growth Rate (%)     65 Mil/0.04%

  Urban Population (Millions) Annual Growth Rate (%)       5.7 Mil/0.44%

  Number of Major Metropolitan Areas                       37 provinces

  Size of the Middle Class (Millions) / Growth Rate (%)    1.57 Mil/5.86%

  Per Capita Gross Domestic Product (U.S. Dollars)         \$1,425

  Unemployment Rate (%)                                    1.7%

  Per Capita Food Expenditures (U.S. Dollars)              \$331

  Percent of Female Population Employed                    65%

  Exchange Rate                                            US\$1=40.22
  -------------------------------------------------------- --------------

## TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS

![](media/image9.wmf){width="8.0in" height="3.7055555555555557in"}

## 

## 

##  

## TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS

![](media/image10.wmf){width="7.874305555555556in"
height="2.7583333333333333in"}

## TABLE D. GDP Growth Rate (%)

![](media/image11.wmf){width="6.247916666666667in"
height="1.4479166666666667in"}

## TABLE E. Economic Projection of 2006

![](media/image12.wmf){width="6.285416666666666in"
height="4.027777777777778in"}

+-----------------------------------+-----------------------------------+
| ##                                |                                   |
|                                   |                                   |
| ##                                |                                   |
|                                   |                                   |
| ##                                |                                   |
|                                   |                                   |
| ##                                |                                   |
|                                   |                                   |
| ##                                |                                   |
|                                   |                                   |
| ## T                              |                                   |
| ABLE F. EXCHANGE RATE (2000-2005) |                                   |
|                                   |                                   |
| ![](media/image13                 |                                   |
| .wmf){width="5.001388888888889in" |                                   |
| height="1.0708333333333333in"}    |                                   |
|                                   |                                   |
| End of Report.                    |                                   |
+-----------------------------------+-----------------------------------+