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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
February 26, 2008

Exotic Thai fruit
to make debut in US markets

By Jon Fernquest



Today's Bangkok Post business section features an AFP article on new opportunities for Thai fruit exports.

[Note: The plural of "fruit" is usually "fruit" but can also be "fruits"]

Exotic Thai fruits such as mangosteen, longan, lychee, and rambutan as well as the more commoon pineapple and mango will now be available in US markets due to changing import regulations in the US:

Last July the United States ended a decade-long ban and began allowing Thailand to sell fresh mangoes, mangosteens, rambutans, lychees, longans and pineapples, provided the fruits are irradiated to kill the pests that nest in them...

...After more than 10 years of completely closing its doors, now Thai fruits are allowed to enter the US market to compete with those from Mexico, Brazil and Australia...

...Asia Exotic Corp is among 18 Thai traders now allowed to export fruits to the US mainland.

(In photos from top to bottom: mangosteen, mangosteen, longan, lychee, and rambutan)

Thai fruit is already exported to several countries. The US market may have greater potential but marketing campaigns will be necessary to raise consumer awareness of Thai fruits:

Thai fruits already sell in China, Japan, India, Taiwan and European countries such as Britain and Germany.

"The US has greater potential because of its larger population, which includes more Asians and also Mexicans" who seek out exotic fruits...

However, continuous campaigns are needed to raise public awareness and to expose the market to Thai fruits...

The Agriculture Ministry predicts exports of fresh fruits to the United States could reach 20,000 tonnes annually in a few years.

Mangosteens are one delicious Thai fruit that many Americans may not be aware of:

Mangosteens are expected to make a particular splash in the United States, where they are becoming a popular health supplement despite the high cost and low supply.

Mangosteens also contain xanthone - a type of antioxidant said to balance free radicals in the body that can cause cancer or heart disease.

About 300,000 tonnes of mangosteen were produced in Thailand this year, more than twice as much as last year...

Gaining the US as a new export market may help Thai fruit farmers deal with the problem of oversupply that they face during certain times of the year:

For farmers, finding a new market helps shore up prices when fruits flood the local market during the local harvest season.

Prices of lychees, for example, sometimes drop to 10 baht a kilogramme from as high as 150 baht.

"Oversupply happens every year. If we have new buyers - either local or abroad - we can sell more lychees at better prices," said grower Lamyai Chaiyakit, 47, from Samut Songkhram province.

There are several factors that might make success in the US difficult. Planning ahead of time for these contingencies will be crucial:

But growers say that selling to the United States is not a sure bet. Shipping is expensive and time-consuming, so the fruits are not fresh when they arrive.

"Sending fresh fruits to the US is costly, especially mangosteens, which have thick and heavy shells," said Suwat Phewsa-ard, a mangosteen grower from eastern Trat province.

"If Thai mangosteens are available in the United States but at higher prices than our competitors, who is going to buy our fruit?"

There are also concerns over possible side-effects from the irradiation required for the US shipments.

"Radiation may shorten the fruits' shelf-life and cause radiation burns that make the fruits less attractive," said Chusak Chuenprayoth, head of the agricultural committee at the Thai Chamber of Commerce.

(Source: Bangkok Post, business section, page B3, 26-02-08, temp-link)



Vocabulary:

AFP - Agence France-Presse, the largest French news agency and the oldest news agency in the world, and one of the three largest with Associated Press and Reuters (See Wikipedia)

ban - state officially that something must not be done

mango - [Thai: Mamuang] green fruit, can be eaten sour or ripe and sweet (See Wikipedia)

mangosteen - [Thai: Mongkut] very sweet fruit with large seed that is black or dark blue on the outside and white on the inside, see first two photos (See Wikipedia)

rambutans - [Thai: Ngaw] a red fruit with little hairs or spikes sticking out of it (See Wikipedia)

lychees - a small, round, very sweet fruit that contains a lot of vitamin C, has a red rind (covering, shell) that must be removed first (See Wikipedia)

longans - a fruit that is small and round with a hard brown covering, juicy and white inside, commonly found canned with syrup in supermarkets (See Wikipedia)

irradiated, food irradiation - exposing food to radiation to destroy harmful microorganisms, bacteria, viruses, or insects:

"Because irradiation can reduce or even eliminate pest infestations, it has opened the markets for previously prohibited items, such as mangoes from India that otherwise have a risk of carrying certain insects and pathogens with them into the importing country. On Hawaii a dedicated irradiator serves for insect disinfestation before transfer to mainland USA, and a second facility is under construction. Insect pests can have a devastating effect on crop production. They can also transmit diseases that destroy crops and kill livestock and people. Heavy reliance on pesticides raises environmental concerns and problems of pest adaptation and resistance. As a result, many countries are seeking to minimize insecticide use through irradiation techniques." (Source: Wikipedia on food irradiation)

exotic - unusual and interesting (because it comes from a distant country)
consumer awareness - making information available to consumers about products they might know about yet, especially the benefits or problems with products
raise public awareness - make people more aware of something (for example, a new product like Thai fruit they have never heard of because they don't exist in the US)
expose the market to Y - make a new product available in a market (for example, making Thai fruit available in US fruit markets)
make a splash - very popular, sells a lot
a health supplement, a dietary supplement - a preparation that supplies nutrients such as vitamins, minerals, fatty acids or amino acids typically missing in most people's diet (See Wikipedia)
antioxidant - a substance that can stabilize and neutralize the damaging cancer causing effects of free radicals, includes some vitamins and minerals such as vitamin C or zinc, or a phytonutrient such as anthocyanidins (See Wikipedia on health effects of antioxidants)
free radicals - harmful molecules that occur in the body. They can cause cell damage and can lead to diseases such as cancer and heart disease (See Wikipedia on free radicals in biology and the free radical theory of aging and Google definitions)
face a problem - have a problem
do ahead of time - do early before deadline, be proactive
contingencies - things that might happen in the future (so you should prepare for that possibility)
crucial - very important
not a sure bet - may succeed, may fail
time-consuming - takes a lot of time to do
side-effects - other things that happen (usually unpleasant) in addition to the main thing expected to happened (for example, the drug might cure your illness but have the side-effect of making you lose your hair)
shelf-life - the length of time that a product can be kept on the shelves of a store before it has to be removed

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