Thailand's food industry differentiates into
health-promoting, disease-preventing "functional foods"
By Jon Fernquest
Any company can claim their food product is
healthy or disease preventing.But can they prove it?
Labeling foods after they pass rigorous standards and tests is one way to prove it.
Japan was the first country to promote this idea during the 1980s by setting up food standards and product labels for special health food products.
These food products were called "functional food" products or Foods for Specified Health Use (FOSHU).
Since the 1980s many countries, notably Canada and Sweden, have followed Japan's example and set up laws on food standards and labeling.
Thailand is the world's leading exporter of many agricultural commodites such as rice and rubber. The food processing industry is also an important part of Thailand's economy with firms Charoen Pokphand Foods (CPF) and Betagro Group being the leading companies operating in this sector.
New functional food products are a good way for Thai food processing companies to differentiate and add value to their products. That's where Thai government promotion of this new business idea, as well as rigorous standards, comes into the picture.
(See photo of copper rich foods to the right from Wikimedia Commons)
rigorous - strict
and thorough
pass rigorous tests, pass rigorous standards - at or above the requirements or standard levels
food standards - an acceptable level of quality and safety for food
product labels - the labels on the outside of food products with some information required by law, also includes logos that certify health and food safety standards have been met
functional food - health-promoting and disease-preventing food
Foods for Specified Health Use (FOSHU) - Japanese program of food standards and labeling during the 1980s (See essay on history)
food processing - the methods and techniques used to transform raw food ingreients into food (See Wikipedia)
Charoen Pokphand Foods (CPF) - Thailand's largest agribusiness firm, major multinational operations, major exporter of processed meat and frozen food products (See Wikipedia, Google Finance, and website)
Betagro Group - major Thai agribusiness firm and producer of processed meat products (See website)
differentiate, product differentiation - the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings. (See Wikipedia)
add value, value-added - the value added to a product at each production and distribution step along the way
X comes into the picture - X has a role and becomes important
pass rigorous tests, pass rigorous standards - at or above the requirements or standard levels
food standards - an acceptable level of quality and safety for food
product labels - the labels on the outside of food products with some information required by law, also includes logos that certify health and food safety standards have been met
functional food - health-promoting and disease-preventing food
Foods for Specified Health Use (FOSHU) - Japanese program of food standards and labeling during the 1980s (See essay on history)
food processing - the methods and techniques used to transform raw food ingreients into food (See Wikipedia)
Charoen Pokphand Foods (CPF) - Thailand's largest agribusiness firm, major multinational operations, major exporter of processed meat and frozen food products (See Wikipedia, Google Finance, and website)
Betagro Group - major Thai agribusiness firm and producer of processed meat products (See website)
differentiate, product differentiation - the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings. (See Wikipedia)
add value, value-added - the value added to a product at each production and distribution step along the way
X comes into the picture - X has a role and becomes important
Role of Thailand's National Innovation Agency (NIA) in food sector?
Next year Thailand's National Innovation Agency (NIA) will have a budget of 400 million baht "to help Thai companies apply knowledge management to achieve innovation.""About 350 million baht will be spent to promote the development of bio-related businesses, focusing on products with high market potential such as food, as well as eco-industry and design.
"Another 50 million will be needed to develop technology, seek venture capital, assistance with intellectual property management and market access, with a target to help 99 companies expand.
"The state-run agency has supported 350 companies in the past five years but they are still small with only one million baht in capital. Therefore, the agency will encourage them to increase investment to 10-20 million baht each.
"This budget is part of a three-year outlay of 316 million baht that the agency has earmarked for the establishment of an innovation park as a focal point for business incubation."
National Innovation Agency (NIA)
- government agency established in 2003 to improve
national competitiveness and productivity through education,
technology, business investment and financing (See website)
bio-related - related to biology: plants, animals, and food
venture capital - investing in small start-up companies in high-tech and risky industries with the goal of eventually having the company issue stock in an IPO when it is successful (See Wikipedia)
IPO - Initial Public Offering, a public offering, when a company issues stock to the public for the first time (See Wikipedia)
intellectual property - right to sell invetions, musical, literary, and artistic works and symbols, names, images, and designs used in commerce, including copyrights, trademarks, patents, and related rights (See Wikipedia)
market access - getting the product into places where it can be bought (and telling customers about it thought advertising and promotion)
three-year outlay of 316 million baht - using 316 baht over the period of three years for some purpose
earmarked for Y - reserved or set aside for purpose Y
a focal point - a concentration point, one central place to being together all activity in this area
business incubation - providing a special safe environment to help new vulnerable businesses develop and turn into full grown successful businesses
bio-related - related to biology: plants, animals, and food
venture capital - investing in small start-up companies in high-tech and risky industries with the goal of eventually having the company issue stock in an IPO when it is successful (See Wikipedia)
IPO - Initial Public Offering, a public offering, when a company issues stock to the public for the first time (See Wikipedia)
intellectual property - right to sell invetions, musical, literary, and artistic works and symbols, names, images, and designs used in commerce, including copyrights, trademarks, patents, and related rights (See Wikipedia)
market access - getting the product into places where it can be bought (and telling customers about it thought advertising and promotion)
three-year outlay of 316 million baht - using 316 baht over the period of three years for some purpose
earmarked for Y - reserved or set aside for purpose Y
a focal point - a concentration point, one central place to being together all activity in this area
business incubation - providing a special safe environment to help new vulnerable businesses develop and turn into full grown successful businesses
Food products of the future?
The NIA will organize a special food conference in Bangkok next year called InnoAsia 2009: Food in the Future (Aug 20-22) with an expected 3,000 to 4,000 participants from 25 countries.According to the NIA, natural products worldwide are worth US$513 billion a year with the growth projection of 25-30% annually for the next five years.
NIA-supported projects include NutraGABA rice, beauty drinks and Y-ZA, a fruit juice with lactobacillus.
NIA will help companies in the food sector with design and branding. Medical foods, organic foods, and novel foods are among different categories of food that NIA is promoting.
Medical foods are intended for use solely under medical supervision to meet the nutritional requirements of specific conditions such as diabetes.
Organic foods include natural and organic beef and organic asparagus.
Novel foods are produced under the process resulting in a significant change in their composition or nutritional value or intended use, such as a fast-baking cake from rice powder.
growth projection - an
future growth estimate, how much experts think the economy will grow
lactobacillus -a bacteria that can reduce inflammatory and cancer (See Wikipedia)
branding - creating and developing an identity or brand for a product, a brand is a collection of images and ideas surrounding the product in things such as an easily recognizable name, logo, slogan, and design scheme that convey the essence of a company, product or service (See Wikipedia)
nutrition - providing the materials necessary to your body so it can grow and be healthy, many common health problems can be prevented or alleviated with good nutrition (See Wikipedia)
nutritional requirements - the minimum amount of certain types of materials you need to eat when you have a health problem
diabetes - a deadly disease in which you have abnormally high blood sugar levels (See Wikipedia)
organic foods - grown without the use of pesticides or chemical fertilizers, free from contamination by human or industrial waste, and processed without radiation or food additives (See Wikipedia)
asparagus - a long green vegetable boiled and eaten (See Wikipedia)
composition - the way the parts are put together and arranged
nutritional value - the different materials in food that have health benefits
intended use - why people are using it, the purpose they are using it for, what they want to use it for
lactobacillus -a bacteria that can reduce inflammatory and cancer (See Wikipedia)
branding - creating and developing an identity or brand for a product, a brand is a collection of images and ideas surrounding the product in things such as an easily recognizable name, logo, slogan, and design scheme that convey the essence of a company, product or service (See Wikipedia)
nutrition - providing the materials necessary to your body so it can grow and be healthy, many common health problems can be prevented or alleviated with good nutrition (See Wikipedia)
nutritional requirements - the minimum amount of certain types of materials you need to eat when you have a health problem
diabetes - a deadly disease in which you have abnormally high blood sugar levels (See Wikipedia)
organic foods - grown without the use of pesticides or chemical fertilizers, free from contamination by human or industrial waste, and processed without radiation or food additives (See Wikipedia)
asparagus - a long green vegetable boiled and eaten (See Wikipedia)
composition - the way the parts are put together and arranged
nutritional value - the different materials in food that have health benefits
intended use - why people are using it, the purpose they are using it for, what they want to use it for
(Source: Bangkok Post, business, 26-11-08, B400m to sow Thai innovation: Bio-related product development pushed, CHATRUDEE THEPARAT, link)
