To carry on business of each products

Character of products or service

 Products of the company are Frozen Vegetables which produce by passing a quality standard production process and have obtained various standard certification such as ISO 22000, HACCP, GMP.

Privileges or limitation in conducting business

 Number of promotion certificates;

 1^(st) Certificate No. 1727/Sor Or./1988

 2^(nd) Certificate No. 1063/Sor Or./1993

 3^(rd) Certificate No. 1397/1994

 4^(th) Certificate No. 1465/1999

 5^(th) Certificate No. 1545(3)/2004

+------------------------+--------+--------+--------+--------+--------+
| Particular             | 1^(St) | 2^(nd) | 3^(rd) | 4^(th) | 5^(th) |
|                        | Certi  | Certi  | Certi  | Certi  | Certi  |
|                        | ficate | ficate | ficate | ficate | ficate |
+------------------------+--------+--------+--------+--------+--------+
| Plant number           | 1      | 1      | 2      | 2      | 2      |
+------------------------+--------+--------+--------+--------+--------+
| Promotion certificate  | 12/1   | 28/0   | 7/0    | 28/1   | 6/0    |
| date                   | 2/1988 | 4/1993 | 7/1994 | 0/1999 | 7/2004 |
+------------------------+--------+--------+--------+--------+--------+
| Business capacity      | 10,000 | 5,000  | 12,000 | 15,000 | 5,850  |
| (tons / year)          |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| Validity of promotion  | 7      | 6      | 8      | 8      | 8      |
| certificate (years)    |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| Effective dates of     | 1/0    | 1/1    | 3/0    | 1/1    | -      |
| promotion certificate  | 2/1990 | 1/1994 | 3/1996 | 1/2001 |        |
+------------------------+--------+--------+--------+--------+--------+
| Expiry dates of        | 1/0    | 1/1    | 3/0    | 1/1    | -      |
| promotion certificate  | 2/1997 | 1/2000 | 3/2004 | 1/2009 |        |
+------------------------+--------+--------+--------+--------+--------+
| Granted investment     | yes    | yes    | yes    | yes    | yes    |
| promotion              |        |        |        |        |        |
|                        |        |        |        |        |        |
| in the:-               |        |        |        |        |        |
|                        |        |        |        |        |        |
| -Manufacture of Frozen |        |        |        |        |        |
|                        |        |        |        |        |        |
| Vegetables.            |        |        |        |        |        |
|                        |        |        |        |        |        |
| -Cold storage service  |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| Type of business:-     | 1.3    | 1.8    | 1.8    | 1.8    | 1.17   |
|                        |        |        |        |        |        |
| 1.3 Food manufacture   |        |        |        |        |        |
| or                     |        |        |        |        |        |
|                        |        |        |        |        |        |
| preservation           |        |        |        |        |        |
|                        |        |        |        |        |        |
| 1.8 Food manufacture   |        |        |        |        |        |
|                        |        |        |        |        |        |
| 1.17 Cold storage      |        |        |        |        |        |
| business               |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| Exemption from company | yes    | yes    | yes    | yes    | yes    |
| income tax             |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| Deduction of two times | yes    | yes    | yes    | yes    | yes    |
| of transportation and  |        |        |        |        |        |
| electricity            |        |        |        |        |        |
|                        |        |        |        |        |        |
| fee for 10 years as    |        |        |        |        |        |
| from income earning    |        |        |        |        |        |
| commencement           |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+
| After the expiry of    | yes    | yes    | yes    | yes    | yes    |
| promotion certificate, |        |        |        |        |        |
| deduction of 50%       |        |        |        |        |        |
| income tax per year    |        |        |        |        |        |
| for 5 years            |        |        |        |        |        |
+------------------------+--------+--------+--------+--------+--------+

As an investment promoted company, the company is required to comply
with the conditions and regulations as stipulated in the Investment
Promotion Certification.

(2) Marketing and competition condition

Previous year marketing

In the passed year, the company had total sale 1,268 million baht
decreased from previous 81 million baht or come to 6.0%. The Company had
export value 1,020 million baht come to 80.4% and domestic sale 248
million baht, come to 19.6%. The Company had sale volume 25,700 metric
tons decreased from previous 800 metric tons or come to 3.0%. Export
volume decreased due to economic problem of Japan still not recovered
and indirect impact from Surnami peril. By overview, it regards that the
company is still able to maintain customer base excellently though the
company would receive impact from economic decline condition and few
natural peril.

Marketing Tactics

 The industrial of manufacturing frozen vegetables uses the modern technology. The products are able to retain for its color, nutrition value with taste like fresh one, no preservative added and also can keep for long, also comfortable and easy when to eat. This is a new line of industrial products which add a new choice for the consumers who are able to buy and eat all year.

 Important of competitive tactics 1. Quality of products is up to standard, to be accepted by oversea 

 customers

Regular delivery at time of need.

Products are free from chemical residue and preservative added.

Closely and continuously communicate and exchange information with the customers in order to repay the customer required more better and better. 

 Advantages

The company has very strong market base.

High rank executives of the company are entirely experienced with knowledge of trading in agricultural products for a decade

Main products of the company is the produces from agriculture of good quality, fresh and safety

The growing areas are of plentiful and able to grow throughout the year and few affect from natural peril such as wind storm, heavy rain and flood when compare with the competitor country like China and Taiwan.

 Disadvantages

The delivery distant both inland and sea are farther when compare to the competitor in overseas which make the delivery cost higher.

Size of growing areas is mostly small and scatter in wide vicinity, control of growing areas and chemical usage are done harder when compare with the competitors in overseas.

 Target customers

 Most of the company consumers are the middle class up group and business group who need the goods in form of half-cooked, clean, healthy and easy consume.

Pricing policy

 The Company has a policy to distribute the products at the price of capable to compete with the competitors both from domestic and overseas.

 Distribution and distribution channels

 Most all the company’s products exported to the overseas through the distribution channels of:-

Overseas There are three channels:

Distribute through an importer and the representative such as Itochu Corporation, Nichirei Corporation and Ing Shiang Co., Ltd., by having sale portion through this channel approximate 54.0% of the total sale.

Distribute directly to the customers by having distribution portion through this channel approximate 26.4% of the total sale.

1.  Distribute through Agri Foods Processing Co., Ltd. (Subsidiary)
    which is an indirect export by having distribution portion through
    this channel approximate 18.5 of total sale.

Domestic There are two channels:

Distribute through the representative, that is P.P. Food Supply Co., Ltd., having distribution portion 0.3% of the total sale.

Direct distribution to the small customers approximate 0.8% of the total sale.

Nature of customers

 Most customers of the company are importers, big traders, representative and small customers which are scatter the goods to Supermarkets, various retail shops and manufacturer in foods industry. Based on the good relationship maintained with the partners and customers, make the company will not lose any of its customers. On the contrary, the company has its progressive and continuously good performances since the commencement of its business in 1990. However, chance to lose an important customers of the company is still existing. Then the company has tried to penetrate more markets which presently, the company is able to export more products to other markets apart from Japan market that are U.S.A., Sweden, Denmark, Taiwan and China. 

State of competition

Owing Thailand is a country of plentiful with available fresh vegetables
eatable all year round, therefore, the main market of frozen vegetable
business are oversea markets especially Japan market which is a market
of high potential, need to consume frozen vegetables in large quantity
because Japan customers prefer to consume in the form of half-cooked,
fresh, clean, healthy and easy to eat. The Company is a main exporter of
frozen vegetables of the country and many companies that are doing the
same business but export portion are less than the company.

(3) Arrangement and services

 Products of the company produce from raw materials bought from the farmers in project through the collector of raw materials, covering areas of 16 provinces of Northern region namely: Chiang Mai, Chiang Rai, Phare, Nan, Phayao, Lamphun, Mae Hong Son, Lampang, Phichit, Phetchabun, Kamphaeng Phet, Phitsanulok, Sukhothai, Tak Utaithani and Udtharadit, in which the company will arrange seeds, fertilizers and insecticides to the farmers for substitution and the company shall buy their produces under guarantee price. During growing period, there will be the officer which is our agricultural promotion employee to provide knowledge and advice to the farmers for nursing, fertilizing and governance for using chemical in order to obtain quality of produces, safe for consumer and highest yield per rai. When the produces could harvest, the company would buy at guarantee price and deduct the cost of seeds, fertilizers and insecticides from buying price of the produces.

Production capacity, production volume and production value

+--------------------------------+----------+--------+--------+-------+
| Particular                     | Unit     | 2011   | 2010   | 2009  |
+--------------------------------+----------+--------+--------+-------+
| Full pr                        | Met      | 42,000 | 42,000 | 4     |
| oduction capacity of machinery | ric tons |        |        | 2,000 |
+--------------------------------+----------+--------+--------+-------+
| Actua                          | Met      | 26,280 | 22,276 | 2     |
| l production volume depend on  | ric tons |        |        | 7,242 |
| season and raw material volume |          |        |        |       |
+--------------------------------+----------+--------+--------+-------+
| Actual rate of usage capacity  | %        | 62.57  | 53.04  | 64.86 |
+--------------------------------+----------+--------+--------+-------+
| Increase (decre                | %        | 17.97  | (      | 12.06 |
| ase) rate of production volume |          |        | 18.23) |       |
+--------------------------------+----------+--------+--------+-------+
| Increase (decr                 | %        | 13.42  | (2.98) | 7.88  |
| ease) rate of production value |          |        |        |       |
+--------------------------------+----------+--------+--------+-------+

Remark: There are three production shifts. Actual production, which depends on the volume of raw materials supplied to the factory, ranges from one to three shifts.

Buying portion of Raw Material :

Domestic: Approximate 200 collectors of raw material at 96%

Oversea : The Company imports raw material at 4%

Affects on environment

 Wasted water that passed the process of the company may affect on environment. So the company takes to pass the system of reforming wasted water in order to meet the requirement of Department of Industrial Works before to let to the system of drain water. For the remainder of raw material from the process, the company will sell in the form of advantage to use as animal feed make no wasted things in this part to affect the environment.

In the past 3 years, the company effort to reduce environment

impact to comply with laws carefully, then the company has no any

dispute or to be accused concerning environment impact.

( 4 ) Undelivered goods

Since the company produces the goods for selling all year and manage to
deliver according to order regularly, so no any order that enable to
deliver.