Required Report - public distribution

**Date:** 11/2/2004

**GAIN Report Number:** TH4123

TH4123

**Thailand**

**Exporter Guide**

**Thailand Exporter Guide Annual 2004**

**2004**

**Approved by:**

![](media/image1.wmf)Rodrick McSherry, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Vladimir Diaz, Marketing Specialist

**Report Highlights:**

This guide is an excellent one-stop source of information on Thailand,
the 15th largest U.S. export market for consumer-oriented foods and
beverages. For U.S. companies seeking to learn how to do business in
Thailand, this guide provides practical tips and information on local
business practices, consumer preferences and trend, food standards and
regulations, import and inspection procedures. Also this guide
identifies which of the three market sectors (food retail, food service,
and food processing) offer the most opportunities for new sales and
describes the best entry approach. Finally, this guide identitfies the
best high-value product prospects and key contacts and further
information.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Bangkok \[TH1\]

\[TH\]

Table of Contents

[**Executive Summary 2**](#__RefHeading___Toc44206933)

[Production 2](#__RefHeading___Toc44206934)

[Production Subcategory 2](#__RefHeading___Toc44206935)

[Consumption
2](#section-iii.-market-sector-structure-trends-consumption)

[Consumption Subcategory 2](#__RefHeading___Toc44206937)

[Trade 2](#__RefHeading___Toc44206938)

[Trade Subcategory 2](#__RefHeading___Toc44206939)

[Stocks 2](#__RefHeading___Toc44206940)

[Stocks Subcategory 2](#__RefHeading___Toc44206941)

[Policy 2](#__RefHeading___Toc44206942)

[Policy Subcategory 2](#__RefHeading___Toc44206943)

[Marketing 2](#__RefHeading___Toc44206944)

[Marketing Subcategory 2](#__RefHeading___Toc44206945)

# Section I. Market Overview

The Kingdom of Thailand is being prompted to be food and agricultural
industry as the "Kitchen to the World." Thailand is Southeast Asia's
second largest economy and it grew by 6.74% during 2003. Domestic
spending and a rebound in exports of 12.20% bolstered the upbeat growth.
Strong intra-Asia demand, diverse export markets, and a competitive
presence in both the agricultural and the industrial sectors supported
strong growth in manufacturing production and helped to strengthen the
economic recovery process.

In the private sector, low interest rates were a major stimulus. Low
interest rates at commercial banks have encouraged Thais to borrow to
buy new homes, cars and other durable goods. Consumer spending accounted
for 56.3% of gross domestic product. Additionally, the government played
a pivotal role in spurring spending. The government provided incentives
for the real estate sector and supported credit extension to villagers,
consumers, civil servants and private companies.

![](media/image2.wmf){width="5.827083333333333in"
height="1.3965277777777778in"}

Thailand is currently the 15^th^ largest export market for U.S.
agricultural products. In 2003, Thailand imported \$79 million in
consumer oriented foods from the U.S., up 24% over 2002's \$70 million.
Corresponding U.S. imports from Thailand were \$431 million, up 11%.
Exports have been among the key engines driving Thailand's economic
recovery in 2003, despite increasing concerns over the volatile global
economy.

![](media/image3.wmf){width="5.827083333333333in"
height="2.0833333333333335in"}

Total exports of U.S. foods (including bulk and intermediate, consumer
oriented, and edible fishery) to Thailand have shown a tremendous growth
in the past five years. For example, exports to Thailand jumped from
\$394 million in 1999 to \$667 in 2003 -- accounting for a 41% increase.
The fastest growing segments are edible fish and seafood products (82%),
bulk and intermediate products (39%), and consumer oriented agricultural
products (35%). The mix of products exporter to Thailand from the U.S.
has remained stable -- bulk and intermediate account for 82% followed by
consumer-oriented products 12% and edible fishery 6% in 2003.

High duties on agriculture and food products remain the major hurdle to
exports of U.S. high-value food products. Duties on imported
consumer-ready food products range between 30% and 60%, the highest in
the ASEAN region and perhaps in the world. Tariffs on meats, fresh
fruits and vegetables, and pulses (e.g. dry peas, lentils, and
chickpeas) are likewise high, even for items with little domestic
production. Frozen French fries, for example, are not produced in
Thailand, yet face a high tariff of 30% (WTO bound rate for 2003). When
import duties, excise taxes, and other surcharges are calculated,
imported wines face a total tax of nearly 380%. As of October 2004, the
tariff on apples stood at 10%, while pears and cherries saw a tariff as
high as 30% and 40% (2003 WTO bound rate) respectively. It is estimated
that potential U.S. agricultural exports to Thailand could be over \$1
billion a year if Thailand's tariffs and other trade-distorting measures
were substantially reduced or eliminated and the economy recovered to
pre-crisis levels.

Things are improving, however. Free trade talks between Thailand and the
U.S. began in mid 2004 and will take aim at market access barriers such
as the high tariffs in Thailand. Expectations are for the talks to
conclude in 2004 with the tariff reduction schedule to be implemented
shortly thereafter.

## Thailand offers many opportunities for alert U.S. exporters. Just a few examples include: 

## 

-   Thailand, covering 198,114 square miles, is situated in the heart of
    Southeast Asia and is considered as the gateway to Indochina.
    Thailand borders with Laos in the north and northeast, Burma 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 64 million, Theravada Buddhism is the national
    religion and is actively practiced by about 95% of Thais, with the
    remainder practicing Islam, Christianity, Hinduism and other faiths.
    About 48 million Thais are aged over 15 years,

-   The size of the work force now exceeds 34 million, with the majority
    of the workforce under 30 years of age,

-   The minimum wage in Thailand is roughly \$4.00 per day in Bangkok,
    and between \$3.10-3.90 per day elsewhere,

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

-   Over 10% of the total population lives in Bangkok, which accounts
    for 90% of the sales of fast moving consumer goods,

-   Most of medium and high-income people live in the major cities,
    including Bangkok, Phuket, Chantaburi, Chiang Mai, Chiang Rai,
    Chonburi, Hat Yai, Khon Kaen, Nakorn Ratchasima, Pattaya,
    Petchaburi, Ratchaburi, Samui Island, Surat Thani, Ubon Ratchatahni
    and Udon Thani,

-   A stable and stronger baht in 2003 and at the beginning of 2004 led
    to an increase in imported consumer-oriented food products from the
    U.S,

-   Over the past few years, 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 (e.g.
    Tesco-Lotus, BigC and Carrefour), 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 produce,

-   Due to 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,

-   In early 2003, tourism around the globe experienced detrimental
    impact from two major incidents: namely, the Iraq conflict and the
    Severe Acute Respiratory Syndrome (SARS) epidemic in Asia. SARS left
    behind the most detrimental impact in Thai tourism history,
    especially in the month of May 2003. Thailand's tourism situation in
    2003 began to improve in July, which partly resulted from the public
    and private partnership in marketing promotion. Pricing measures
    were used to attract international visitors, in addition, to travel
    security presented by the Royal Thai Government through the hosting
    of the APEC conference in October, as well as the launches of
    low-cost airlines towards the end of the year. In conclusion, 2003
    saw a total of 10,004,453 international arrivals to Thailand,
    representing a decrease of 7.36% and generating tourism revenue of
    309,269 million baht, a drop of 4.39% from the previous year. The
    average length of stay amounted to 8.19 days, with an average
    tourist expenditure of 3,774.50 baht per person per day, which was
    only slightly different from 2002,

-   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 increase 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 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 other neighboring         |
|     markets                       |     countries impedes the entry   |
|                                   |     of U.S. products              |
+-----------------------------------+-----------------------------------+
| -   Increase of per capita income | -   U.S. products are not always  |
|     from \$3,000 in 2002 to       |     price-competitive compared to |
|     \$3,182 in 2003               |     imports from other Asian      |
|                                   |     countries due to high         |
| -   GDP for 2005 is projected at  |     tariffs, shipping costs and   |
|     5.9% and 6.8% in 2004         |     the long distance to Thailand |
|                                   |                                   |
| -   Increase in Thai consumers'   |                                   |
|     preference for higher quality |                                   |
|     products                      |                                   |
|                                   |                                   |
| -   U.S. and Thailand are         |                                   |
|     negotiating a free trade      |                                   |
|     agreement, which will enhance |                                   |
|     the competitiveness of        |                                   |
|     American food and             |                                   |
|     agricultural products in      |                                   |
|     Thailand                      |                                   |
+-----------------------------------+-----------------------------------+
|                                   | -   Bilateral free trade          |
|                                   |     agreement between Thailand    |
|                                   |     and other countries,          |
|                                   |     particularly China,           |
|                                   |     Australia, 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, 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             |
+-----------------------------------+-----------------------------------+
| -   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       |
+-----------------------------------+-----------------------------------+

# 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; 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. 5/12/04 means December 5, 2004. 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. Whenever
    possible, avoid scheduling meetings after 3:30 p.m. because locals
    often leave their office early to get a head start on evening
    rush-hour traffic.

-   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. Don't
    put the other person's card in your pocket until the meeting is
    over. Don't write on his/her personal 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, most 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/gainfiles/200407/146106948.pdf

-   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 Consumption

All Consumer Expenditure on Food

According to Euromonitor, one notable trend is the large proportion of
consumer expenditure on retail food. In 2003, retail accounted for more
than 70% of total consumer expenditure on food. Conversely, consumers
are allocating a lower proportion of their expenditure to food service,
reflecting a general tendency among Thais to cook at home rather than
dinning out, particularly among residents living in rural areas. This
coincides with a preference among consumers for traditional cooking
methods and authenticity styles of cuisine.

![](media/image4.wmf){width="5.998611111111111in" height="1.68125in"}

![](media/image5.wmf){width="5.998611111111111in"
height="3.0076388888888888in"}However, expenditure on food service
registered an increase of 8% in 2003. An increase in eating out and
patronizing restaurants specially prominent among the younger
generation, as well as working professionals, as it is more convenient
and efficient than cooking at home. Furthermore, the increasing number
of food establishments in the market also resulted in a considerable
increase in food service sales.

**Tourism Spending**

In 2003, tourist spent 28% on shopping activities -- the largest share.
This trend is mainly fueled by a favorable exchange rate and aggressive
promotions in Thailand's retailing market. In general, low cost products
and different retail concepts attract tourists, ranging from department
stores to large-scale flea markets. Accommodation constitutes a
significant 25% share of total tourism expenditure in 2003. Finally,
travel within the country also registered positive, albeit sluggish
growth in 2003. Domestic tourism became more active after the outbreak
of SARS, as the majority of Thais adopted a cautious attitude towards
traveling. Active promotions, such as the new campaign *Unseen
Thailand,* by the government are also encouraging an increase in
domestic tourism.

![](media/image6.wmf){width="5.998611111111111in"
height="3.339583333333333in"}

A)  **Retail Sector**

Thailand's retail trade sector is a vital component of the Thai economy
accounting for an 8% share of GDP and 4% of total employment. The growth
of retail trade is attributable to the higher purchasing power of
households as a result of the general economic recovery, better
employment conditions, low inflation, and low interest rates that helped
increase the extension of consumer and housing credits. Thailand\'s
retail sector experienced a rapid increase in new investments from both
local and foreign players in 2003 despite economic uncertainty. Driven
by its hypermarkets and convenience stores, Thailand is the second most
dynamic retail market in Asia after China. About an 8% increase in sales
for the traditional trade sector is expected, while in the modern sector
sales are seen rising 18%. According to AC Nielsen's annual survey, the
average Thai consumer spent \$140 per month on retail products; this
retail spending accounted for 31% of household income.

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; France-based Casino Group with BigC;
Carrefour of France; and Netherlands-based Makro. 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.

![](media/image7.wmf){width="5.998611111111111in"
height="2.178472222222222in"}Since the beginning of 2003, hypermarket
expansion in Bangkok is experiencing a deceleration in growth, given the
fewer new hypermarket construction projects underway 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% of total products, up from 70%, or 1,700 items at present. 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 a shift in manufacturing bases within the
region.

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. These outlets 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**

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 who 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**

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.

**B) Convenience Stores, Gas Marts & Kiosks**

**Entry Strategy**

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.
The major convenience stores like CP 7-Eleven and FamilyMart are listed
at the end of this report. 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**

A common distribution channel to convenience stores, gas marts and
kiosks flows from U.S. exporters to U.S. consolidators and traders keep
to Thai distributors then deliver 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.

**C) Traditional Markets:** 'Mom and Pop', small independent grocery
stores and wet markets.

**Entry Strategy**

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**

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 sea food (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 (milk powder, cheese, cheese spread, cream cheese, whipped
cream, sour cream, cheese sticks, cheese dip and ice-cream), dips, fresh
fruits (cherries, grapes, peach, plums, nectarine, berries, grapefruit,
apples), frozen pizza, frozen peas, pie filling, micro wave pop-corn,
frozen processed turkey, dried fruits, pickles, 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 (prior to the import
ban), grapes, frozen French fries, snack foods, breakfast cereal, wine,
nutritional products, and pet foods. Products that are not currently
present in the market in significant quantities but have excellent sales
potential are American seafood including scallops, Alaska King crab
legs, halibut and other fishes, fruit juices, biscuits, candy, cherries,
peaches, pears, plums, nectarines, chocolate milk mix, cheese, dip
sauce, chili sauce, Mexican sauce, other cooking products, peanut
butter, pie filling, turkey and whipped cream.

**Further Information**

Further information on this area is available in *A Market Brief on
Thailand's Retail Food Sector Report 2002* (GAIN Report #TH2116) 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 attract middle to higher
income Thais, Thai corporate businessmen, resident expatriates and
tourists. Thailand tourism is an important component of the service
sector that last year generated approximately 323 billion baht (\$7.5
billion) in revenue. This industry is one of the key factors behind
Thailand's quick economic recovery. In 2003, the international tourist
arrivals to Thailand reached 10 million and total income from all
tourism-related business was about Baht 309 billion (\$7.5 billion).
Food and beverage sales of hotels and resorts accounts for about 30% of
total revenues. The average rate of imported food versus locally
produced food in the entire HRI sector is 30%; the U.S. has
approximately 20% of the imported product share. U.S. beef, seafood
(lobster, Alaska king crab legs, scallops, etc.), wine, potato,
seasonings, etc are well known in the hotel/restaurant trade, and with
airline catering companies. Thai Airways International uses 30-40%
imported food in their in-flight catering service.

General restaurants have been replaced by restaurants chains such as
Oishi, Fuji, Zen, S&P, Black Canyon, MK Suki, Seefah Restaurant, 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.

**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, and Pattaya are secondary recommendations for U.S.
exporters. Direct contact with Thai Airways International's catering
department is highly recommended.

**Best Market Prospects**

Best market prospects for U.S. suppliers include American seafood such
as U.S. cold water fish such as 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, kiwi fruit,
avocados, blueberries, grapefruit, oranges), frozen berries, pie
fillings, frozen peas, fruit juice (apple, prune, orange, grape,
sparkling white grape), jam and jelly, Mexican sauce, nuts (walnuts,
hazel nuts, macadamia nuts), dried fruits, pickles, ready-to-mix
pancakes, cookies, muffins and cake, syrup, tortilla chips, U.S. beef,
turkey, 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%) of which are small sized establishments and cottage industries.
Among the 15% that are medium and large enterprises (1,234 listed
companies), most are cold storage plants (20.8%) followed by producers
of grain and cassava items (17.8%), frozen meat including poultry meat
(10.9%), starch (10.0%), canned fruit and vegetables (7.4%), fat and oil
(7.3%), sugar and honey (5.9%), coffee and tea (4.9%), canned meat and
seafood (3.9%), snacks (3.2%), and others (8.3%).

Currently, Thailand is among the top food-exporting countries in the
world. Annually, the industry imports food ingredients approximately
\$1.8 billion (The U.S. accounts for about 30% market share), and this
trend will increase in the future. 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:

-   The Thai market for raw materials is growing. Raw inputs to the food
    processing sector are primarily supplied by Thai companies.
    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 foods, 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.

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.

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% of production sold outside the country. Approximately
67% 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.

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 international food chains industry is expanding rapidly, both in
    the numbers of companies entering the market and in the number of
    outlets due to the changing life style and the booming tourist
    industry. Most of the major international fast food companies are
    represented in Thailand, including McDonalds, Burger King, KFC, A&W,
    Pizza Hut, The Pizza, Auntie-Anne's, Baskin Robbins, Swensen's,
    Delifrance, Starbuck coffee house, Subway, etc. The rapid growth of
    the fast food sector is stimulating many businesses such as bakery
    products, dairy products, meat and poultry, etc;

-   Thailand's seafood processing sector is the fourth largest in Asia
    after Japan, China, and India. More than 90% 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% 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 in 2006, 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 MIATCO.

**Best Market Prospects**

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

**Distribution System**

In Thailand, the distribution channel for retailers, hotels,
restaurants, institutional contractors and food processors is very
similar. The distribution channel to supermarkets and hypermarkets in
Thailand normally begins from importers to distributors to a central
warehouse or direct to retail outlets. The foodstuffs will be kept
either in the importers' warehouse, distributors' warehouse or central
warehouse before delivery. Besides the above, the principal and
manufacturer can also deliver food products directly to their
distributor.

A common distribution channel to convenience stores, gas marts and
kiosks flows from U.S. exporters to U.S. consolidators/ traders to Thai
distributors to C-stores, gas marts and kiosk distribution centers. The
flow pattern of the different retailers varies depending on the sales
volume and number of outlets. A key ingredient in the success of the
larger retailers in the control of their own distribution center.

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.

# Section IV. Best High Value Product Prospects 

![](media/image8.wmf){width="7.896527777777778in"
height="7.954861111111111in"}

**Section V. Tariff[\
]{.smallcaps}**![](media/image9.wmf){width="6.958333333333333in"
height="8.95138888888889in"}

# 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\             |
| Pathumwan\                        | APO AP 96546\                     |
| Bangkok 10330 Thailand            | \                                 |
|                                   | Key Contact(s):\                  |
|   --                              | Rodrick McSherry, Agricultural    |
| -------- ------------------------ | Counselor\                        |
|   Tel:       +662-205-5106        | Russ Nicely, Agricultural Attaché |
|                                   |                                   |
|   Fax:       +662-255-2907        |                                   |
|                                   |                                   |
|                                   |                                   |
| E-mail:    agbangkok@fas.usda.gov |                                   |
|                                   |                                   |
|   Website:   www.usdathailand.org |                                   |
|   --                              |                                   |
| -------- ------------------------ |                                   |
+-----------------------------------+-----------------------------------+

**B)** **U.S. Department of Commerce, Commercial Service**

Commercial Service is the global business solutions unit of the
Department of Commerce. Offering small and mid-sized businesses for
non-food or agricultural products' world-class market research, trade
events that promote your product or service to qualified buyers,
introductions to qualified buyers and distributors and counseling
through every step of the export process. Questions or comments should
be directed to:

+-----------------------------------+----------------------------------+
| Local:\                           | U.S. Mail:\                      |
| U.S. Embassy                      | US Commercial Service            |
|                                   |                                  |
| U.S. Commercial Service           | FCS Box 51                       |
|                                   |                                  |
| Pathumwan, Bangkok 10330          | APO AP 96546\                    |
|                                   | \                                |
|   ----------                      | Key Contact(s):\                 |
| --------------------------------- | Judy Reinke, Commercial          |
|   Tel:       +66-2-205-5090       | Counselor                        |
|                                   |                                  |
|   Fax:       +66-2-255-2915       | Scott Shaw, Commercial Attaché   |
|                                   |                                  |
|   E-mail:                         |                                  |
|   bangkok.office.box@mail.doc.gov |                                  |
|                                   |                                  |
|   Websi                           |                                  |
| te:   www.buyusa.gov/thailand/en/ |                                  |
|   ----------                      |                                  |
| --------------------------------- |                                  |
+-----------------------------------+----------------------------------+

**C) 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:                          |
| E- mail:                          | Richelieu@lieumktg.com.sg         |
| 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:                          | Fax: 656- 278-4372                |
| Richelieu@lieumktg.com.sg         |                                   |
|                                   | 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         |                                   |
+-----------------------------------+-----------------------------------+

**\
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., Kian Gwan Building 1    | Key Contact(s):\                  |
|                                   | Judy Benn, Executive Director     |
| 140 Wireless Road                 |                                   |
|                                   |                                   |
| Bangkok 10330                     |                                   |
|                                   |                                   |
| Tel. (662) 251-9266/7, 251-1605,  |                                   |
| 651-4473                          |                                   |
|                                   |                                   |
| Fax (662) 255-2454                |                                   |
|                                   |                                   |
| 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              |
|                                   |                                   |
| Director (Ms. Suchitra            | Nonthaburi 11000                  |
| Setha-udom)                       |                                   |
|                                   | Tel. (662) 590-7207/8             |
| Food Control Division             |                                   |
|                                   | E- mail: food@fda.moph.go.th      |
| Tivanont Road, Muang              |                                   |
|                                   |                                   |
| Nonthaburi 11000                  |                                   |
|                                   |                                   |
| Tel. (662) 590-7178               |                                   |
|                                   |                                   |
| Fax (662) 591-8460                |                                   |
|                                   |                                   |
| E- mail: schitra@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**              |                                   |
|                                   |                                   |
| Don Muang                         |                                   |
|                                   |                                   |
| Bangkok 10900                     |                                   |
|                                   |                                   |
| Tel. (662) 535-1546               |                                   |
|                                   |                                   |
| Fax (662) 535-1210                |                                   |
+-----------------------------------+-----------------------------------+

+-----------------------------------+-----------------------------------+
| **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**  | **Plant Quarantine Control Post** |
|                                   |                                   |
| Agricultural Regulatory Division  | Cargo Building                    |
|                                   |                                   |
| Chatuchak, Bangkok 10900          | Donmuang Airport                  |
|                                   |                                   |
| Tel. (662) 940-6573, 940-6670     | Bangkok 10900                     |
| Ext. 108                          |                                   |
|                                   | Tel. (662) 535-1435               |
| Fax (662) 579-4129                |                                   |
|                                   | Fax (662) 523-6622                |
| E- mail: ard@doa.go.th            |                                   |
|                                   | 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                |
+-----------------------------------+-----------------------------------+

**F) Retailers\
**

+-----------------------------------+-----------------------------------+
| **Siam Makro Company Limited**    |                                   |
+-----------------------------------+-----------------------------------+
| 3498 2nd Fl., Lard Prao Rd        | Key Contact(s):\                  |
|                                   | Mr Philip Cox, Food Director (Dry |
| Klongchan, Bangkapi               | Grocery)                          |
|                                   |                                   |
| Bangkok 10240, Thailand           | Mr. Louis Lin, Food Director      |
|                                   | (Fresh Food)                      |
| Tel. +662 704-7000 / 375-7000     |                                   |
|                                   |                                   |
| Fax. +662 375-8866                |                                   |
+-----------------------------------+-----------------------------------+
| **Big C Supercenter Co., Ltd**    |                                   |
+-----------------------------------+-----------------------------------+
| Fl 7 Univest Building             | Key Contact(s):\                  |
|                                   | Mr. Yves Braibant, CEO            |
| 89/36 Rajadamri Road              |                                   |
|                                   | Ms. Suwandee Chaiwarut, Marketing |
| Lumpini, Pathumwan                | and PR Director                   |
|                                   |                                   |
| Bangkok 10330, Thailand           |                                   |
|                                   |                                   |
| Tel. +662 655-0666                |                                   |
|                                   |                                   |
| Fax. +662 655-5801-2              |                                   |
+-----------------------------------+-----------------------------------+
| **Tesco Lotus**                   |                                   |
+-----------------------------------+-----------------------------------+
| 699 18th Floor, Modernform Tower  | Key Contact(s):\                  |
|                                   | Mr Mike Raycraft, CEO\            |
| Srinakrarin Rd, Suanluang         | Mr. David Horton, VP Fresh Food   |
|                                   | Development                       |
| Bangkok 10250, Thailand           |                                   |
|                                   | Mr. Chaiyasit Rachapithag, VP Dry |
| Tel. +662 722-9640-79             | Grocery                           |
|                                   |                                   |
| Fax. +662 722-9682/9684           |                                   |
+-----------------------------------+-----------------------------------+
| **Tops Supermarket, Central Food  |                                   |
| Retail Company Limited**          |                                   |
+-----------------------------------+-----------------------------------+
| 6th-7th Floor Central Plaza       | Key Contact(s):\                  |
| Office Tower                      | Mr. Ian Pye, President\           |
|                                   | Chiranun Poopat, VP/Buying,       |
| 1693 Paholyothin Road\            | Merchandising and Marketing       |
| Lard Yaow, Jatujak                |                                   |
|                                   |                                   |
| Bangkok 10900                     |                                   |
|                                   |                                   |
| Tel. +662 937-1700                |                                   |
|                                   |                                   |
| Fax. +662 937-1711                |                                   |
+-----------------------------------+-----------------------------------+
| **Cen Car Ltd (Carrefour Global   |                                   |
| Sourcing)**                       |                                   |
+-----------------------------------+-----------------------------------+
| 14th Floor Q. House Sathorn       | Key Contact(s):\                  |
| Building                          | Jean Paul Khaou, Head of Fresh    |
|                                   | Division\                         |
| 11 South Sathorn Road,            | Stephane Naurier, Head of Grocery |
| Tungmahamek,                      | Division                          |
|                                   |                                   |
| Sathorn, Bangkok 10120            |                                   |
|                                   |                                   |
| Tel. +662 625-4444                |                                   |
|                                   |                                   |
| Fax. +662 677-3343-4              |                                   |
+-----------------------------------+-----------------------------------+
| **The Mall Group (The Mall)**     |                                   |
+-----------------------------------+-----------------------------------+
| 1909 Ramkhamhaeng Road            | Key Contact(s):\                  |
|                                   | Mr Pira Asawapirom, Chief         |
| Huamark, Bangkapi                 | Merchandising Officer             |
|                                   |                                   |
| Bangkok 10240, Thailand           |                                   |
|                                   |                                   |
| Tel. +662 310-1000 / 318-8925     |                                   |
|                                   |                                   |
| Fax. +662 315-6605 / 318-8923     |                                   |
+-----------------------------------+-----------------------------------+
| **Siam Jusco**                    |                                   |
+-----------------------------------+-----------------------------------+
| 129 Ratchdapisek Rd               | Key Contact(s):\                  |
|                                   | Mr Takashi Takani, Managing       |
| Dindaeng, Bangkok 10320, Thailand | Director                          |
|                                   |                                   |
| Tel. +662 642-2401-8              |                                   |
|                                   |                                   |
| Fax. +662 970-1823-4              |                                   |
+-----------------------------------+-----------------------------------+
| **The City Mall Group Limited     |                                   |
| (Emporium)**                      |                                   |
+-----------------------------------+-----------------------------------+
| 622 Sukhumvit 24 Rd               | Key Contact(s):\                  |
|                                   | Mr. Kriengsak Tantipipop,         |
| Klongton, Klongtoey               | Managing Director                 |
|                                   |                                   |
| Bangkok 10110, Thailand\          |                                   |
| Tel. +662 664-8000                |                                   |
|                                   |                                   |
| Fax. +662 663-4532, 663-4536      |                                   |
+-----------------------------------+-----------------------------------+
| **Foodland Supermarket Co., Ltd** |                                   |
+-----------------------------------+-----------------------------------+
| 2675 Lard Prao 95                 | Key Contact(s):\                  |
|                                   | Mr Supamit Surongsain, Assistant  |
| Wangthonglarng, Bangkok 10310,    | Vice President of Marketing       |
| Thailand                          |                                   |
|                                   |                                   |
| Tel. +662 932-2948                |                                   |
|                                   |                                   |
| Fax. +662 539-0837                |                                   |
+-----------------------------------+-----------------------------------+
| **Tang Hua Seng Department        |                                   |
| Store**                           |                                   |
+-----------------------------------+-----------------------------------+
| 289 Sirinthorn Rd                 | Key Contact(s):\                  |
|                                   | Mr Viroj Chunprathipthong,        |
| Bangbamru, Bangplad               | Managing Director                 |
|                                   |                                   |
| Bangkok 10700, Thailand           |                                   |
|                                   |                                   |
| Tel. +662 434-0448                |                                   |
|                                   |                                   |
| Fax. +662 434-6057                |                                   |
+-----------------------------------+-----------------------------------+
| **Villa Market JP Co., Ltd**      |                                   |
+-----------------------------------+-----------------------------------+
| 591/1, 4-5 Sukhumvit Rd           | Key Contact(s):\                  |
|                                   | Mr Surapong Poosanakhom, Managing |
| Klongton, Klongtoey               | Director                          |
|                                   |                                   |
| Bangkok10110, Thailand            | Mr. Pisit Poosanakhom, Executive  |
|                                   | Director                          |
| Tel. +662 662-1000                |                                   |
|                                   |                                   |
| Fax. +662 259-1077                |                                   |
+-----------------------------------+-----------------------------------+
| **CP 7-Eleven Co., Ltd**          |                                   |
+-----------------------------------+-----------------------------------+
| 313 CP Tower, 20th Fl.            | Key Contact(s):\                  |
|                                   | Mr. Korsak Chairasmisak, CEO      |
| Silom Rd, Bangkok 10500, Thailand |                                   |
|                                   | Mr Piyawat Thitasathavorakul,     |
| Tel. +662 631-0231 extension 1677 | Managing Director                 |
|                                   |                                   |
| Fax. +662 638-2680                |                                   |
+-----------------------------------+-----------------------------------+

+-----------------------------------+-----------------------------------+
| **Siam Familymart**               |                                   |
+-----------------------------------+-----------------------------------+
| 139 Robinson Building             | Key Contact(s):\                  |
|                                   | Mr. Yoshitsugu Katahira, Managing |
| 5th Fl Ratchdapisek Rd            | Director                          |
|                                   |                                   |
| Dindaeng, Bangkok 10320, Thailand |                                   |
|                                   |                                   |
| Tel. +662 254-1632-51             |                                   |
|                                   |                                   |
| Fax. +662 255-8573                |                                   |
+-----------------------------------+-----------------------------------+

[]{#__RefHeading___Toc44206940 .anchor}

**[Appendix I. Statistics]{.smallcaps}**

![](media/image10.wmf){width="5.998611111111111in"
height="3.6708333333333334in"}

![](media/image13.wmf){width="5.998611111111111in"
height="2.178472222222222in"}

![](media/image14.wmf){width="5.998611111111111in"
height="1.0173611111111112in"}

  ---------------------------------------------------- ----------------------------------------------------
  ![](media/image16.wmf){width="3.170138888888889in"   ![](media/image17.wmf){width="3.170138888888889in"
  height="3.1951388888888888in"}                       height="3.1951388888888888in"}

  ---------------------------------------------------- ----------------------------------------------------

![](media/image18.wmf){width="6.0in" height="7.788888888888889in"}

End of Report