Food Industry in Thailand

Export Items2007 2008 2009 2010

Metric Ton Million US$ Metric Ton Million US$ Metric Ton Million US$ Metric Ton Million US$ Total Food 28,567,720 $ 20,585 29,035,481 $ 25,935 28,767,703 $ 25,140 28,368,985 $ 26,755 Fisheries 1,674,359 $ 6,402 1,672,737 $ 7,139 1,652,205 $ 7,004 1,729,549 $ 7,321 Shrimp 355,219 $ 2,722 358,928 $ 2,807 398,894 $ 3,114 427,581 $ 3,365 Tuna 468,144 $ 1,597 506,097 $ 2,152 534,878 $ 1,915 588,727 $ 1,981 Other canned fish 185,800 $ 499 193,761 $ 555 182,770 $ 560 190,681 $ 560

Frozen fish 431,616 $ 636 408,117 $ 781 343,833 $ 670 325,476 $ 643 Cuttlefish 93,539 $ 518 81,778 $ 449 78,400 $ 400 73,638 $ 413 Others 140,040 $ 431 124,056 $ 396 113,430 $ 344 123,447 $ 359 Cereal 9,495,669 $ 4,042 10,376,414 $ 6,830 8,677,883 $ 5,757 8,983,099 $ 5,625 Rice 9,289,395 $ 3,978 10,218,286 $ 6,775 8,638,842 $ 5,741 8,939,630 $ 5,606 Others 206,274 $ 64 158,128 $ 54 39,042 $ 16 43,469 $ 19 Livestock 618,479 $ 1,474 858,584 $ 2,119 782,067 $ 2,016 636,067 $ 2,073 Chicken, Prepared/Preserved Chicken

330,153 $ 1,330 400,057 $ 1,922 388,931 $ 1,798 427,610 $ 1,853

Others 288,327 $ 144 458,527 $ 198 393,136 $ 217 208,457 $ 219 Fruit 1,910,020 $ 1,778 2,016,352 $ 2,014 2,148,655 $ 2,044 2,055,885 $ 2,117 Pineapple (Canned/Preserved)

601,432 $ 544 650,783 $ 683 539,297 $ 554 550,018 $ 552

Pineapple Juice 135,753 $ 142 152,793 $ 183 151,396 $ 217 139,877 $ 220 Mango 29,684 $ 38 36,333 $ 48 45,343 $ 53 42,987 $ 50 Others 1,143,151 $ 1,598 1,176,443 $ 1,100 1,412,619 $ 1,218 1,323,003 $ 1,295 Vegetable 485,044 $ 562 491,487 $ 550 451,410 $ 548 465,634 $ 544 Sweet Corn (Canned) 159,148 $ 162 172,872 $ 173 170,179 $ 182 182,821 $ 182

Baby corn (Fresh/Canned) 53,413 $ 54 48,615 $ 52 44,523 $ 49 45,587 $ 49

Others 272,483 $ 346 270,000 $ 325 236,708 $ 316 237,227 $ 313 Others Food 14,384,149 $ 6,328 13,619,908 $ 7,283 15,055,482 $ 7,773 14,498,751 $ 9,075

Sugar 4,435,672 $ 1,462 5,011,802 $ 1,588 5,052,570 $ 2,053 4,500,969 $ 2,311 Non-Alcoholic Beverage 249,187 $ 198 425,723 $ 240 355,476 $ 307 400,444 $ 409

Seasoning 166,861 $ 270 177,128 $ 328 195,097 $ 388 222,151 $ 432 Palm oil 401,753 $ 329 498,115 $ 551 185,823 $ 157 222,000 $ 218 Tapioca (Flour/starch) 1,496,338 $ 478 1,286,513 $ 511 1,817,735 $ 566 1,764,107 $ 836

Tapioca (Pellet/chip) 4,488,390 $ 634 2,851,433 $ 524 4,357,028 $ 682 4,273,225 $ 866

Feed 807,681 $ 318 695,028 $ 289 796,044 $ 274 988,775 $ 417 Petfood 233,522 $ 522 268,687 $ 651 242,483 $ 609 275,040 $ 658 Others 2,104,746 $ 2,117 2,405,478 $ 2,601 2,053,227 $ 2,738 1,852,040 $ 2,927

Food Industry in Thailand“Kitchen of the World”Thailand has become one of the world’s largest and most advanced producers and exporters of processed food products. Its deep agricultural traditions and abundance of natural resources, combined with significant investments in international quality standards, technology, and food safety R&D, have helped to make Thailand the sole net food exporter in Asia.

In 2010, Thailand’s export-oriented food industry generated $27 billion - an increase of 30% from 2007. Thailand consistently ranks as not only a major food producer regionally, but worldwide. Thailand dominates a number of food export sectors, ranking first in the world in 2010 for rice, cassava and tapioca, canned pineapples and seafood products.

Fishery Products

In 2010, fishery exports increased by 14% by value from 2007, largely driven by increased demand from the major US and EU markets. The 2010 merger of a Thai company and EU distributor of canned tuna fish resulted in a Thai takeover of distribution in the European Union. Demand was boosted in the U.S. as the oil spill in the Gulf of Mexico took a toll on the fishing industry there.

Rice

In 2010, Thailand exported 9 million tons of rice valued at US$ 6 billion - a 41% increase from 2007. To retain its competitiveness in the industry, companies are allocating additional resources to R&D in the areas of disease-resistant rice cultivars and yield improvements. New products are being developed to diversify into areas such as organic rice, vitamin-fortified rice, and frozen rice dishes. Chemical-free rice in particular is growing in popularity as consumers are growing increasingly health-conscious.

Export Items2007 2008 2009 2010

Metric Ton Million US$ Metric Ton Million US$ Metric Ton Million US$ Metric Ton Million US$ Total Food 28,567,720 $ 20,585 29,035,481 $ 25,935 28,767,703 $ 25,140 28,368,985 $ 26,755 Fisheries 1,674,359 $ 6,402 1,672,737 $ 7,139 1,652,205 $ 7,004 1,729,549 $ 7,321 Shrimp 355,219 $ 2,722 358,928 $ 2,807 398,894 $ 3,114 427,581 $ 3,365 Tuna 468,144 $ 1,597 506,097 $ 2,152 534,878 $ 1,915 588,727 $ 1,981 Other canned fish 185,800 $ 499 193,761 $ 555 182,770 $ 560 190,681 $ 560

Frozen fish 431,616 $ 636 408,117 $ 781 343,833 $ 670 325,476 $ 643 Cuttlefish 93,539 $ 518 81,778 $ 449 78,400 $ 400 73,638 $ 413 Others 140,040 $ 431 124,056 $ 396 113,430 $ 344 123,447 $ 359 Cereal 9,495,669 $ 4,042 10,376,414 $ 6,830 8,677,883 $ 5,757 8,983,099 $ 5,625 Rice 9,289,395 $ 3,978 10,218,286 $ 6,775 8,638,842 $ 5,741 8,939,630 $ 5,606 Others 206,274 $ 64 158,128 $ 54 39,042 $ 16 43,469 $ 19 Livestock 618,479 $ 1,474 858,584 $ 2,119 782,067 $ 2,016 636,067 $ 2,073 Chicken, Prepared/Preserved Chicken

330,153 $ 1,330 400,057 $ 1,922 388,931 $ 1,798 427,610 $ 1,853

Others 288,327 $ 144 458,527 $ 198 393,136 $ 217 208,457 $ 219 Fruit 1,910,020 $ 1,778 2,016,352 $ 2,014 2,148,655 $ 2,044 2,055,885 $ 2,117 Pineapple (Canned/Preserved)

601,432 $ 544 650,783 $ 683 539,297 $ 554 550,018 $ 552

Pineapple Juice 135,753 $ 142 152,793 $ 183 151,396 $ 217 139,877 $ 220 Mango 29,684 $ 38 36,333 $ 48 45,343 $ 53 42,987 $ 50 Others 1,143,151 $ 1,598 1,176,443 $ 1,100 1,412,619 $ 1,218 1,323,003 $ 1,295 Vegetable 485,044 $ 562 491,487 $ 550 451,410 $ 548 465,634 $ 544 Sweet Corn (Canned) 159,148 $ 162 172,872 $ 173 170,179 $ 182 182,821 $ 182

Baby corn (Fresh/Canned) 53,413 $ 54 48,615 $ 52 44,523 $ 49 45,587 $ 49

Others 272,483 $ 346 270,000 $ 325 236,708 $ 316 237,227 $ 313 Others Food 14,384,149 $ 6,328 13,619,908 $ 7,283 15,055,482 $ 7,773 14,498,751 $ 9,075

Sugar 4,435,672 $ 1,462 5,011,802 $ 1,588 5,052,570 $ 2,053 4,500,969 $ 2,311 Non-Alcoholic Beverage 249,187 $ 198 425,723 $ 240 355,476 $ 307 400,444 $ 409

Seasoning 166,861 $ 270 177,128 $ 328 195,097 $ 388 222,151 $ 432 Palm oil 401,753 $ 329 498,115 $ 551 185,823 $ 157 222,000 $ 218 Tapioca (Flour/starch) 1,496,338 $ 478 1,286,513 $ 511 1,817,735 $ 566 1,764,107 $ 836

Tapioca (Pellet/chip) 4,488,390 $ 634 2,851,433 $ 524 4,357,028 $ 682 4,273,225 $ 866

Feed 807,681 $ 318 695,028 $ 289 796,044 $ 274 988,775 $ 417 Petfood 233,522 $ 522 268,687 $ 651 242,483 $ 609 275,040 $ 658 Others 2,104,746 $ 2,117 2,405,478 $ 2,601 2,053,227 $ 2,738 1,852,040 $ 2,927

Thailand’s Exported Food Products, 2007-2010

Source: National Food Institute

Livestock Products

In 2010, meat exports grew 41% by value from 2007. Demand was driven by the EU allocating higher quotas for imported poultry, a robust Japanese market, and growing acceptance of Thai food production standards in the Middle East.

Fruit and Vegetable Products

Fruit and Vegetable Products increased 16% by value from 2007 to 1010, following an increase in demand from the European and Russian markets. Especially, pineapple juice exports increased 56% in the same period.

Sugar

From 2007 to 2010, the value of sugar exports increased 58% on higher sugar prices caused by a drought and ensuing shortage in India in 2010.

Thailand’s Top 10 Food Export Markets, 2010

Source: National Food Institute

Thailand’s food exports to the rest of the world are balanced between major regions. The US was Thailand’s

largest market with 15% of total food exports by value, followed by Japan with 14%. Regional neighbors China and

Indonesia took another 7% and 4%, respectively. Thailand’s top market in Europe was the UK with 4% of total food

exports.

Seasonings and Ingredients

Thailand’s tropical climate and famously complex cuisine makes the country a natural base from which to both procure

raw materials and harness local skills to produce seasonings, flavorings and other additives. Additionally, Thailand’s long growing seasons and abundant natural raw materials make seasonings and ingredient production price competitive. In 2010, Thailand’s total food ingredients export value was US$ 407 million. Instant curry showed the highest value of export at US$ 40 million, followed by chili sauce (US$ 38 million), fish sauce (US$ 37 mil l ion) , oyster sauce (US$ 18 million), soya sauce ( U S $ 1 5 m i l l i o n ) and tomato sauces ( U S $ 5 m i l l i o n ) . Addit ionally, soya s a u c e s h o w e d a noticeable annual growth in 2010 of 25%, fo l lowed by chili sauce (23%) and instant curry (21%).

Thai Exports of Food Ingredients, 2010

Source: Thai Food Processors’ Association

When Fresh Produce Meets Technology

Thailand’s abundance of natural resources is central to its comparative advantage in the food processing industry, as more than 80% of the raw materials used by the country’s food industry are sourced locally at low prices. Thailand will maintain its position as a world leader in the food processing industry by drawing on this natural wealth and leveraging new technologies and improved standards in efficiency, production, safety, and hygiene.

Government and industry initiatives have helped Thailand’s processed food industry upgrade its procedures and technologies so that its products meet international quality and sanitation standards and are better able to compete on a global basis. These initiatives have been so successful that processed food exports now exceed primary agricultural exports.

The processed food industry is boosted abroad by the development of ready-to-cook products targeted at developed economies such as Japan and the European Union (EU) and an effort by the government and industry to promote higher quality and sanitation standards. Domestic growth of the industry is driven by increased consumption of processed foods as incomes continue to rise.

Thai food processors are developing new frozen food products to keep up with shifting domestic consumption preferences. In 2010, Thailand exported 397,022 tons of RTE food and food ingredients valued at US$ 822 million - a 17.4% increase over the previous year. Thai RTE food is gaining popularity overseas as other countries grow accustomed to Thai quality, nutrition, and tastes. Additionally, sauces and curries are experiencing particular success in overseas markets. Between 2009 and 2010, growth reached 20% annually with a total value of US$ 407 million. Major export markets currently include the U.S., Japan, the E.U., and Australia.

Dole Food Company has operated a growing processed fruit business in Thailand for over 35 years. We currently operate three manufacturing facilities and employee more than 8,000 associates.

Dole has invested several million dollars over the past few years to upgrade and expand our production facilities in Thailand. The policies of the Thai government and the incentives offered by the BOI have been beneficial to us as investors and have helped to ensure that we earn a reasonable rate of return on our investments in the Kingdom.

-Mark Mc Kinney, President of Dole-

Though most processed food products are for export purposes, domestic consumption of processed food is growing due to lifestyle changes, led by an increasing demand for convenient food options. In 2010, domestic demand for ready meals, dried, chilled and frozen processed food grew 13%, 15%, 11%, and 10%, respectively. These processed food products are available in a wide variety of venues, most notably those of the following major Thai supermarkets: Tesco, Makro, The Mall Group, Big C, Foodland, and Tops.

Presently, the Thai food processing industry is comprised of over 10,000 food processing companies. Major Thai and multinational industry leaders include: Nestle, Saha Pathana Inter Holding Ltd, Patum Rice Mill & Granary, Royal Friesland Foods NV, Unilever Group, Thai Union, Dole Thailand, Charoen Pokphand Group, Betagro, Saha Farms, Thai Beverage PLC, Kellogg’s, Kraft, PepsiCo, Del Monte, Procter & Gamble, Ajinomoto and Ef-fem food.

TrendsNational Food Institute (NFI) has made the following growth projections for Thailand’s food industry in 2011:

• Total food industry exports are projected to rise another 6.5% by value to US$ 28.5 billion, fueled by global economic recovery, irregular global weather patterns recovering demand from post-disaster Japan, and growth of major markets such ASEAN, the EU, Africa and the Middle East.

• Livestock value of exports will grow 9%, receiving the benefits of certification from the EU and Egypt for frozen and chilled chicken, which would allow producers to export frozen chickens for the first time since bird flu concerns arose in 2004.

• Fishery exports are projected to grow 3% on lower import duties for distribution in Europe and a drop in productivity in the Gulf of Mexico region.

• Fruit and vegetable value of exports is expected to rise 18%.• Sugar exports are forecasted to jump 17% in the coming year.

Halal: Emerging Halal Centre

Halal food products must adhere to strict Islamic dietary guidelines. Muslims cannot consume pork, other animals not slaughtered properly, birds of prey, blood products, or alcohol. In Thailand, the Central Islamic Committee sets high standards for the accreditation of halal food companies. Thai halal products are processed in accordance with the committee’s Standard B.E. 2544 regulations, which cover production facilities, raw materials, products, storage, employees, transport and distribution.

Estimates of the global halal food market in 2010 range from US$635 billion to US$1 trillion, with Thailand said to own a 5.6% share as the world’s fifth-biggest producer. Thailand ranks first for halal

exports among the 10 member countries of the Association of Southeast Asian Nations (ASEAN).

Through overall market expansion and the continual launch of new products, experts predict that Thailand’s exports of halal food should grow by at least 10% annually through 2014. Singapore, Malaysia, Indonesia, Brunei, the UAE, Saudi Arabia and Egypt right now are the main markets for Thai- made halal food products. Boasting the world’s largest Muslim population, Indonesia is a particularly attractive market. With 30 million Muslims, China looms as one potentially lucrative market for Thai halal products. Apart from China, Thai halal entrepreneurs also aim to cultivate business opportunities in Mongolia, Russia, Kazakhstan, Kyrgyzstan and Pakistan.

To strengthen the sector, the Thai government has laid out a broad scope of strategies. The five southern provinces of Pattani, Yala, Narathiwat, Satun and Songkhla are emphasized as likely main bases, with halal livestock products given substantial attention under the development policies. Thailand is also stepping up cooperative activities with countries in the region such as Indonesia and Malaysia that are significant halal centers.

Thailand has abundant raw materials for Halal food production. This has supported the establishment of over 2,000 food processing facilities with more than 35,000 Halal-certified products.

-Khathawut Lohmud, Head of Academics, Department of Halal Affairs,

The Central Islamic Committee of Thailand-

Food Safety and Food StandardsAdherence to quality and hygiene standards is critical for global competitiveness in the food processing industry. Thailand has a number of authorized food safety certifying agencies, including the Department of Medical Science, the Thai Industrial Standards Institute, the Department of Agriculture, the Department of Fisheries, and the Department of Livestock.

The Food and Drug Administration (FDA) ensures product safety by issuing manufacturing licenses, labeling food products, conducting pre- and post-marketing control, and enforcing adherence to Good Manufacturing Practices (GMP). GMP certification is mandatory for manufacturers and importers of 54 different food product types.

The National Bureau of Agricultural Commodity and Food Standards (ACFS) certifies the standards applied to agricultural commodities and food products. ACFS standards include Good Agricultural Practices (GAP), Good Hygienic Practices (GHP) and Hazard Analysis Critical Control Point (HACCP), as well as other, standards regarding pesticide residues and diagnostic testing for foot and mouth disease and bovine tuberculosis. Processed food containing genetically modified organisms (GMOs) are regulated through the Ministry of Public Health’s Manual for Labeling Procedures.

Thai standards are drawn from and adhere to international standards such as Codex, OIE Standards and the International Plant Protection Convention. Quality assurance systems such as GMP, Total Quality Management (TQM), HACCP, and the International Organization for Standardization (ISO) are mandatory

OpportunitiesAsia as a whole contains tremendous opportunity for food processors. Food demand in South and Southeast Asia will experience tremendous growth as populations and incomes expand. According to the World Bank, American consumers generally spend less than 10% of their income on food, while food composes up to 50% of Asian consumers’ expenditures.

Ready-to-eat food

Domestic demand for processed food goods is showing considerable growth; between 2005 and 2010 sales of ready-to-eat processed meals in Thailand grew 105%, reaching US$ 122 million. As lifestyles continue to change, convenient and ready-to-eat processed food products will be increasingly popular. Additionally, Thailand’s sizeable tourism industry, which attracts over 14 million tourists per annum, will sustain further growth amongst the country’s food processing industry. These tourists bring with them not only money to spend, but also a demand for imported food products.

Demand abroad is growing, too. Food processors located in Thailand have access to the ASEAN market of over half a billion people. According to the terms of the ASEAN Free Trade Agreement (AFTA), relevant tariff and non-tariff barriers amongst members were eliminated or drastically reduced in 2010. Furthermore, the new Bangkok International Airport, which started operating as a hub of Asia in 2006, has proven an effective air freight transport hub for perishable products.

for certain products, including canned foods. All of the standards Thailand uses to regulate its food industry have been accepted by the members of the Asia-Pacific Economic Cooperation (APEC). The Ministry of Agriculture and Cooperatives is accelerating its standards and certification project to ensure that Thailand’s food industry meets accepted international standards.

The National Food Institute (NFI), as part of the team responsible for Food Safety Management in Thailand, promotes food safety by helping entrepreneurs produce products to international standards. It provides the following services: • Consultancy services in the implementation of GMP/HACCP/

ISO 9000/ISO14000/ ISO/IEC 17025 and Clean Technology Systems Risk Assessment studies;

• Dissemination of information related to food safety regulatory laws and standards; and

• Chemical and microbiological testing of food samples to ensure that products destined for commercial distribution are up to international regulatory standards.

Snacks

Demand for a number of specific snack products has increased in recent years in Thailand including breakfast cereals, bread, spreads, and extruded snacks, such as rice crackers and noodles. Thailand’s market for sweet and savory snacks is expected to grow 7% per year to reach US$ 1 billion in 2015. By 2010, sales of potato chips surpassed US$ 198 million, and extruded snacks as a whole reached US$ 244 million on 4.5% growth from the previous year.

Health food

Expanding access to nutritional information has heightened consumer health-consciousness and increased the demand for healthy products. The health food market in Thailand - particularly tortilla chips, nuts, fruit snacks, products without MSG or preservatives, soy, low-fat or -calorie foods, vegetarian foods, and foods with all-natural ingredients - is expected to increase rapidly. Euromonitor International projects average annual growth of 7.6% to 2014 for better-for-you packaged food and 6.1% for naturally healthy packaged foods. Thailand is already in a strong position within this industry sub-sector.

Food Machinery and Equipment

Opportunities abound not only within the food processing industry itself, but also in supporting industries, which include food processing and packaging equipment.

Thai processors have demonstrated a willingness to upgrade equipment to keep pace with growing demand and maintain the country’s competitiveness in the food processing and packaging sector. In particular, the introduction of the GMP standard for the food safety equipment in 2003 brought a notable increase in the volume of GMP-level equipment purchased by Thailand-based firms. The Thai market for food processing and packaging equipment has grown an average of 20% annually since 1999.

Imports of food processing and packaging equipment are large at US$ 2.08 billion in 2010. The majority of this equipment, which is largely machines used in the processing of dairy, meat and poultry, fishery, fruit and vegetable products, is imported from Germany (38%), Japan (16%), China (12%), the US (10%) and Italy (11%).

Other OpportunitiesOpportunities for investment also exist in the following areas: • Plant propagation and development• Hydroponics cultivation• Forestry plantation• Manufacture of biological fertilizers, organic fertilizers or soil

conditioner• Animal breeding or Animal husbandry• Manufacture of animal feed or mixes for animal feed• Crop drying and silo facilities• Deep sea fishery• Slaughtering• Tanneries, leather finishing, or fur dressing• Manufacture or preservation of food or food ingredients, using

modern technology• Manufacture of oil or fat from plants or animals• Manufacture of flour or starch made from plants, dextrin or

modified starch• Grading, packaging and storage of plants, vegetables, fruits or

flowers, using modern technology• Manufacture of products from herbs• Manufacture of natural rubber products• Manufacture of products from agricultural by-products or

waste• Manufacture of alcohol or fuel from agricultural products,

including scrap, garbage and/or waste• Cold storage and cold storage transportation• Trading centers for agriculture goods• Farm management

Jelly Belly’s primary reason for investing in Thailand is the availability of raw materials, including GMO-free products. Additionally, Thailand has competitive labor costs and a central geographic position in Southeast Asia.

- Herman G. Rowland Jr., Managing Director of Jelly Belly Candy Company (Thailand) Ltd.-

Thailand offers a number of outstanding advantages for food processors. These include:

Competitive workforce: According to Thai National Food Institute, Thailand’s food industry provides employment to approximately 800,000 people. Thailand not only boasts relatively low labor costs, but also has an exceptionally well-educated workforce. There are many institutes to ensure that Thailand’s labor force will be able to meet the demands and skills required of the continually expanding food processing industry. These include:

• The Food Engineering Practice School (FEPS): - The Food Engineering Practice School program at King

Mongkut’s University of Technology Thonburi (KMUTT) is the forerunner of the growing trend of the private sector utilizing research and development potential of universities.

- The aim is to meet the large demand for qualified food engineers in the fast-growing food and agro-processing industries of the country.

• Food Engineering Program: - Food Engineering Program, Department of Food Science

and Technology at Kasetsart University’s aims are to develop human resources specializing in advanced food process engineering, and to expand and transfer knowledge to the industry and government for continuous improvement of the safety quality and value of food products.

• Biotechnology Graduate Program: - Biotechnology Graduate Program at Mahidol University is

aimed at training students as research scientists capable of carrying out independent work in academic and industrial settings. The program provides a wide range of expertise specializing in the areas of Agricultural Biotechnology; Food Biotechnology; Industrial Biotechnology and Bioprocess Engineering; and, Molecular and Medical Biotechnology.

Why Thailand

Thailand is a strategic hub of food production for both Asia and the rest of the world due to its biodiversity and natural agricultural productivity. Entrepreneurs in Thailand’s agriculture and food processing industries continue to strive to introduce new technologies. In addition, the Thai Government has introduced policies which support food production at high standards of safety and quality. Thailand has both the high potential and the key fundamentals to become a major production base and distribution center for world food production, as well as an attractive destination for international investors.

-Dr. Petch Chinabutr, President of NFI-

Strong Business Climate: Thailand’s economy is one of the fastest growing in Asia. In 2010, the World Bank indicated that Thailand was ranked 19th in the world and 6th in Asia in terms of ease of doing business.

Hub of Asia: The reduction of tariff and non-tariff barriers articulated in free trade agreements between Thailand and India, China, Japan, Australia and ASEAN extends trade opportunities with neighboring countries. Thailand stands out amongst neighboring countries because of its bilateral and multilateral collaboration, excellent infrastructure, abundance of raw materials, skilled work force, government support, central location within ASEAN and proximity to India and China.

Excellent logistics systems: Thailand boasts world-class infrastructure, including state-of-the-art ports, airports and communication facilities. Suvarnabhumi International Airport and Laem Chabang Deep Seaport offer manufacturers the transportation foundation they need for their export operations, while the 225 km of inter-city motorways - currently in expansion - linking Bangkok to other regions of the Kingdom allow for efficient transport within the country itself. In addition, the Greater Mekong Subregion (GMS) economic corridor linking Thailand with neighboring countries in the Mekong River basin, including Vietnam, Cambodia, Laos, Burma and Yunnan Province of China, will promote development and integration within GMS.

Developed Network of Supporting OrganizationsGovernment and organizations supporting the growth and competitiveness of the food processing industry in Thailand include:

The National Food Institute (NFI)• The Technological Services Department assists processors in

the implementation of GMP or HACCP safety systems in food production.

• The Agricultural Research Development Agency (ARDA) cooperates with the NFI to develop processed food production and agro-food human resources.

The Halal Standard Institute of Thailand helps ensure that the development and certification of Halal food standards complies with the provisions of the Islamic Religion and correspond to international standards so that it is trusted and accepted by local and international public, food producers and consumers which will therefore promote and increase the competitiveness of the country’s Halal food industry and to protect Islamic consumers locally.

The Halal Science Centre, Chulalongkorn University (CU) focuses on the following mission: • Establishing of Halal laboratories fully equipped with modern

and high standard analytical and preparative scientific devices.• Providing analytical services for detection of any contamination’s

against Islamic law (Haram and Najis) in raw materials, and finished products supplied for Halal Food market

• Conducting Research and development on new methodologies, product innovation as well as reagent kits exploitable for Halal food verification.

• Preparing lists of chemicals, raw materials and products as to accommodate Halal food manufacturers and consumers.

Kasetsart University (KU)• Institute of Food Research and Product Development (IFRPD)

performs research on food science and technology to assist food industries by providing relevant information to social and academic offices and communities.

• KU Food Innovation Research and Services in Thailand (KU-FIRST) focuses on increasing the competitiveness of the Thai food industry in the world market through the development of food safety mechanisms

• Cassava and Starch Technology Research Unit aims to support the industrial sectors by: conducting R&D on cassava starch properties, processing, modification and industrial applications; coordinating technology between producers and users; and aiding the transfer of technology and supporting technical services.

The Food Processing Industry Club has 227 members in 12 sub-sectors: beverages; spice and seasoning; tea, coffee and cocoa; sugar and deserts, milk and dairy products; oil and edible fats; meat and poultry; flour and flour products; fishery product; fresh and processed vegetables and fruit; feed, and other specialty foods.

Thai Food Processors’ Association:• Tuna Processors’ Group• Seafood Processors’ Group• Pineapple Processors’ Group• Fruit & Vegetable Processors’ Group• Sweet Corn Processors’ Group• Food Ingredient and Ready-to-eat Processors’ Group

For further information:Thailand Board of Investment (BOI): www.boi.go.thThai National Food Institute: www.nfi.or.thThe Halal Standard Institute of Thailand: www.halal.or.th/en/main/index.phpThe Halal Science Centre, Chulalongkorn University (CU):www.halalscience.org/en/main2011/index.phpThe Food and Drug Administration: www.fda.moph.go.th/enginfo.htmThe Food Processing Industry Club: www.fti.or.th/FTI%20Project/GroupCallEng.aspx Thai Food Processors’ Association: www.thaifood.org/Thai_Food_Processors’_Association.htm

Board of Investment (BOI) IncentivesThailand Board of Investment offers a wide range of fiscal and non-tax incentives for investments based on location. Tax-based incentives include exemption or reduction of import duties on machinery and raw materials, and corporate income tax exemptions and reductions. Non-tax incentives include permission to bring in foreign workers, own land and take or remit foreign currency abroad.

Several activities, including manufacture or preservation of food or food ingredients, plant propagation and development, hydroponics cultivation, and manufacture of flour or starch made from plants, dextrin or modified starch have been classified as priority activities. As such, projects receive an eight-year corporate income tax exemption and are exempt from import duties on machinery, regardless of location. In addition, projects are eligible to receive other relevant location-based incentives.

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KHONKAENRegional Investment and Economic Center 3177/54 Moo 17, Mitraphap Rd., Muang, Khonkaen 40000Tel: +66 (0) 4327-1300-2Fax: +66 (0) 4327-1303Email: khonkaen@boi.go.th

CHONBURI Regional Investment and Economic Center 446 Moo 5, Laem Chabang Industrial Estate,Sukhumvit Rd., Toongsukhla, Sriracha, Chonburi 20230Tel: +66 (0) 3840-4900Fax: +66 (0) 3840-4999, +66 (0) 3840-4997Email: chonburi@boi.go.th

SONGKHLARegional Investment and Economic Center 57-15 Chaiyong Building, Juti Uthit 1 Rd., Hadd Yai, Songkhla 90110Tel: +66 (0) 7434-7161-5Fax: +66 (0) 7434-7160Email: songkhla@boi.go.th

SURAT THANIRegional Investment and Economic Center 649/21-22 Sriwichai Rd., Makhamtia, Muang, Surat Thani 84000Tel: +66 (0) 7728-4637, +66 (0) 7728-4435Fax: +66 (0) 7728-4638Email: surat@boi.go.th

PHITSANULOKRegional Investment and Economic Center 73rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Rd., Naimuang, Muang, Phitsanulok 65000Tel: +66 (0) 5524-8111Fax: +66 (0) 5524-8777Email: phitsanulok@boi.go.th

Overseas OfficesBEIJINGThailand Board of Investment, Beijing OfficeRoyal Thai Embassy, No.40 Guang Hua Rd., Beijing 100600 P.R.C. Tel: +86-10-6532-4510Fax: +86-10-6532-1620Email: beijing@boi.go.th

FRANKFURTThailand Board of Investment, Frankfurt OfficeRoyal Thai Embassy, Bethmann Str. 58, 5.OG 60311 Frankfurt am Main Federal Republic of GermanyTel: +49 (0) 69-9291-230Fax: +49 (0) 69-9291-2320Email: fra@boi.go.th

GUANGZHOUThailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, Room 1216-1218, Garden Tower, 368 Huanshi Dong Rd., Guangzhou 510064 P.R.C Tel: +86-20-8333-8999 ext. 1216-8, 8387-7770Fax: +86-20-8387-2700 Email: guangzhou@boi.go.th

LOS ANGELESThailand Board of Investment, Los Angeles OfficeRoyal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A.Tel: +1-323-960-1199Fax: +1-323-960-1190Email: boila@boi.go.th

NEW YORKThailand Board of Investment, New York Office61 Broadway Avenue, Suite 2810, New York, N.Y. 10006, U.S.A.Tel: +1-212-422-9009Fax: +1-212-422-9119Email: nyc@boi.go.th

OSAKAThailand Board of Investment, Osaka OfficeRoyal Thai Consulate-General, Bangkok Bank Building, 5th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 JapanTel: +81 (0) 6-6271-1395Fax: +81 (0) 6-6271-1394Email: osaka@boi.go.th

PARISThailand Board of Investment, Paris OfficeAmbassade Royale de Thailande, 8, Rue Greuze, 75116 Paris, FranceTel: +33 (0) 1-5690-2600-1Fax: +33 (0) 1-5690-2602Email: par@boi.go.th

SEOULThailand Board of Investment, Seoul Office#1804, 18th Floor, Coryo Daeyungak Tower, 25-5, Chungmuro 1-ga, Jung-gu, Seoul, 100-706, KoreaTel: +82-2-319-9998Fax: +82-2-319-9997Email: seoul@boi.go.th

SHANGHAIThailand Board of Investment, Shanghai OfficeRoyal Thai Consulate-General, 15th Floor, Crystal Century Tower, 567 Weihai Rd., Shanghai 200041, P.R.CTel: +86-21-6288-9728-9Fax: +86-21-6288-9730Email: shanghai@boi.go.th

STOCKHOLMThailand Board of Investment, Stockholm Office Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75 Fax: +46 (0) 8463 1160Email: stockholm@boi.go.th

SYDNEYThailand Board of Investment, Sydney OfficeSuite 101, Level 1, 234 George Street, Sydney, New South Wales 2000, AustraliaTel: +61-2-9252-4884Fax: +61-2-9252-2883Email: sydney@boi.go.th

TAIPEIThailand Board of Investment, Taipei OfficeTaipei World Trade Center, 3rd Floor, Room 3E 39-40 No.5 Xin-Yi Rd., Sec. 5 Taipei 110, Taiwan R.O.C.Tel: +886-2-2345-6663Fax: +886-2-2345-9223Email: taipei@boi.go.th

TOKYOThailand Board of Investment, Tokyo OfficeRoyal Thai Embassy, 8th Fl., Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 JapanTel: +81 (0) 3-3582-1806Fax: +81 (0) 3-3589-5176Email: tyo@boi.go.th

Contact Us

www.boi.go.th555 Vibhavadi-Rangsit Rd., Chatuchak, Bangkok 10900, ThailandTel: +66 2553 8111 Fax: +66 2553 8222 E-mail: head@boi.go.th

BOI 2012