Programmes to help smaller Thai food producers
meet international food safety standards and enter export
markets
By Jon Fernquest
This year there has been much talk of a rural-urban divide that separates Bangkok, the rich center of the country, from the poorer and less economically developed farming provinces of the north and northeast.
Food processing is one industry that poorer provinces in Thailand probably have a competitive advantage in because they are located closer to the crops.
There is even the potential for small provincial companies (SMEs) to become world-class food exporters.
For this to happen, mastery of international standards of food safety is absolutely essential. Today's Bangkok Post business section takes a close look at developments in this area.
rural-urban
divide -
the conflict in a society between rich people who live in cities and
the often more numerous farmers who live in the rural
provinces ความขัดแย้ง ไม่ลงรอยกันระหว่างคนมีเงิน กับคนจน
food processing - methods and techniques to change raw agricultural products such as fruit, rice, and meat into products that can be sold in a store to consumers (See Wikipedia) การถนอมอาหาร การแปรรูปอาหาร
SMEs - Small and Medium-sized Enterprises, below a certain number of employees or capitalization (below 5 million baht in capitalization in Thailand)
standards - acceptable levels of quality มาตราฐาน
international standards - levels of quality accepted by all or most of the countries of the world มาตราฐานสากล
food safety - a scientific discipline that develops techniques for food handling, preparation, and storage to remove health hazards and maintain the cleanlieness of food (Note: Food can transmit disease from person to person as well as serve as a growth medium for bacteria that can cause food poisoning) (See Wikipedia) ความปลอดภัยของสารอาหาร
food processing - methods and techniques to change raw agricultural products such as fruit, rice, and meat into products that can be sold in a store to consumers (See Wikipedia) การถนอมอาหาร การแปรรูปอาหาร
SMEs - Small and Medium-sized Enterprises, below a certain number of employees or capitalization (below 5 million baht in capitalization in Thailand)
standards - acceptable levels of quality มาตราฐาน
international standards - levels of quality accepted by all or most of the countries of the world มาตราฐานสากล
food safety - a scientific discipline that develops techniques for food handling, preparation, and storage to remove health hazards and maintain the cleanlieness of food (Note: Food can transmit disease from person to person as well as serve as a growth medium for bacteria that can cause food poisoning) (See Wikipedia) ความปลอดภัยของสารอาหาร
Thailand's food exports
Food exports are a key export item and earn Thailand about 790 billion baht each year. If global growth shrinks to 2.2% in 2009, Thai food exports in 2009 are forecast to contract by 4%. If global growth shrinks to 1.2% in 2009, an 8% contraction could follow with an estimated 720 billion baht in food exports (Check out different Thai food export products at Thailand.com).With increased trade in food products worldwide, food safety has become a big issue in recent years.
Chinese food products have faced several food safety incidents since 2004. China exports many food products so there has been international pressure on China to solve the country's food safety problems (See Wikipedia).
Thailand has also faced food safety incidents in the past. In 2005 Thailand lost 40% of its fruit market share in European supermarkets to Vietnamese exports because EU customs inspectors found bacterial contamination in Thai fruit imports (Read this article and other articles on agriculture and food safety in Easy Business English).
an
incident - when
an unpleasant event happens เหตุการณ์ที่เกิดขึ้น
the customs department - the government agency that inspects goods coming into the country to collect taxes on them and to make sure that nothing illegal like drugs or contaminated unsafe food comes into thecountry กรมศุลกากร
customs inspectors - government officials who inspect goods coming into the country เจ้าหน้าที่ศุลการักษ์
bacterial contamination - when dirt, chemicals, or radiation enters something and makes it dangerous การปนเปื้อนแบคทีเรีย
the customs department - the government agency that inspects goods coming into the country to collect taxes on them and to make sure that nothing illegal like drugs or contaminated unsafe food comes into thecountry กรมศุลกากร
customs inspectors - government officials who inspect goods coming into the country เจ้าหน้าที่ศุลการักษ์
bacterial contamination - when dirt, chemicals, or radiation enters something and makes it dangerous การปนเปื้อนแบคทีเรีย
Food safety standards
International food safety standards and systems for ensuring high standards have become very important for food exporting countries like Thailand.HACCP (Hazard Analysis and Critical Control Points) is a system for food safety that has been widely adopted by many countries around the world
HACCP stresses prevention and identifying potential food safety hazards (physical, chemical, and biological) before they do harm.
(Photo on right: Inspecting a display of products that have received Pre-HACCP certification, from left: Assoc Prof Vudtechai Kapilakanchana, president of Kasetsart University; Yuthasak Supasorn, president of the National Food Institute, and Assoc Prof Dr Samakkee Boonyawat, vicepresident for research of Kasetsart University.)
food safety standards - acceptable
levels of food cleanliness and safety มาตราฐานความปลอดภัยของอาหาร
HACCP (Hazard Analysis and Critical Control Points) - an international system for food safety and hygiene that stresses prevention over finished product inspection, the system seeks to identify potential food safety hazards (physical, chemical, and biological) (See Wikipedia and FAO guidelines for developing countries)
a hazard - a dangerous thing that can cause harm (to health, safety, reputation, etc...) อันตราย
identifying potential food safety hazards - finding conditions in food storage, handling, and preparation that could make it dangerous พบการปนเปื้อน
certification - an official process that provides proof that certain standards have been met after tests and inspection, an official document (certificate) to prove that these standards have been met การรับรองคุณภาพ
National Food Institute (NFI) - a non-profit and independent network organization of the Ministry of Industry. It is tasked to support and foster development of the food industry to boost its competitiveness in the world markets...established by the Thai Government in October 15, 1996 to address barriers limiting the development of the food processing industry in Thailand (See website)
HACCP (Hazard Analysis and Critical Control Points) - an international system for food safety and hygiene that stresses prevention over finished product inspection, the system seeks to identify potential food safety hazards (physical, chemical, and biological) (See Wikipedia and FAO guidelines for developing countries)
a hazard - a dangerous thing that can cause harm (to health, safety, reputation, etc...) อันตราย
identifying potential food safety hazards - finding conditions in food storage, handling, and preparation that could make it dangerous พบการปนเปื้อน
certification - an official process that provides proof that certain standards have been met after tests and inspection, an official document (certificate) to prove that these standards have been met การรับรองคุณภาพ
National Food Institute (NFI) - a non-profit and independent network organization of the Ministry of Industry. It is tasked to support and foster development of the food industry to boost its competitiveness in the world markets...established by the Thai Government in October 15, 1996 to address barriers limiting the development of the food processing industry in Thailand (See website)
Meeting international standards difficult for SMEs
Large food manufacturers with big budgets have a much better chance of achieving international food safety standards than smaller SME firms do. Only 4% of an estimated 9,000 SME food producers in Thailand meet HACCP standards.Japan's economy has remained strong because of the solid fundamentals of its small and medium enterprises. The same may be true for Thailand in the future, but many Thai SMEs lack the funding or knowledge for entering overseas markets.
Many SMEs have certification for local standards in Thailand such as Good Manufacturing Practice (GMP) but this is not enough for export markets.
(Note: Higher safety standards are a new business cost that every business in the food supply chain has had to face in recent years. A European friend of mine in northern Thailand used to run his own lean one or two man food wholesale company back in his hometown in Europe supplying restaurants with low cost food. That was before new EU regulations on food safety. These new laws required new staff to do the necessary inspections and fill out the necessary paperwork. Facing this new overhead he decided a small firm like his could no longer be competitive with larger firms so he closed down his business.)
Good
Manufacturing Practice (GMP)
- local standards of food safety in Thailand, not good
enough for many export markets มาตราฐานการผลิตอาหาร
a lean company - a company with few employees and little overhead
wholesale - buying and selling goods in large quantities, during distribution before the goods reach the store การขายส่ง
paperwork - the routine part of a job of filling in forms, faxing, photocopying, filing, writing emails and reports งานเอกสาร
fill out the necessary paperwork - do the paperwork that is required by law or by company work procedures กรอกเอกสาร
a lean company - a company with few employees and little overhead
wholesale - buying and selling goods in large quantities, during distribution before the goods reach the store การขายส่ง
paperwork - the routine part of a job of filling in forms, faxing, photocopying, filing, writing emails and reports งานเอกสาร
fill out the necessary paperwork - do the paperwork that is required by law or by company work procedures กรอกเอกสาร
A pre-HACCP programme
A new pre-HACCP programme has been created in Thailand to help these smaller firms along the way to mastering international food standards:The
NFI teamed up with Kasetsart
University Food Innovation Research and
Services in Thailand (KU-First) to launch the Pre-HACCP
programme last
year, aimed at upgrading
production processes
in small food processors
and producers nationwide. The one-year pilot programme
running from
last December was joined by 601 food operators across the country, 400
of whom passed the programme.
Project director Dr Warunee Varanyanond said the Pre-HACCP standard was designed both to enable its participants to achieve basic standards like Good Manufacturing Practice (GMP) and to spur further development to meet HACCP requirements.
Experts have visited production sites and given advice on improving production processes.
"We are confident the programme will boost sustainable growth in small operators and prepare them to achieve the higher standard of HACCP, the critical requirement for food exports," she said.
Mr Yuthasak said he expected firms that achieve Pre-HACCP to be ready to develop to meet the higher certification within two years...
Mr Yuthasak said that, as the programme had received wide attention, he expected the number of Thai food producers getting HACCP to rise. He estimated that Thailand would have 5,000 HACCP-certified factories within three years.
This would also help drive Thai food exports in the global slowdown, he said.
Project director Dr Warunee Varanyanond said the Pre-HACCP standard was designed both to enable its participants to achieve basic standards like Good Manufacturing Practice (GMP) and to spur further development to meet HACCP requirements.
Experts have visited production sites and given advice on improving production processes.
"We are confident the programme will boost sustainable growth in small operators and prepare them to achieve the higher standard of HACCP, the critical requirement for food exports," she said.
Mr Yuthasak said he expected firms that achieve Pre-HACCP to be ready to develop to meet the higher certification within two years...
Mr Yuthasak said that, as the programme had received wide attention, he expected the number of Thai food producers getting HACCP to rise. He estimated that Thailand would have 5,000 HACCP-certified factories within three years.
This would also help drive Thai food exports in the global slowdown, he said.
Kasetsart
University Food
Innovation Research and
Services in Thailand (KU-First) - programme at Kasetsart
University on food processing and food safety (See website,
read interview
with director, and read BOI
brochure on Thai food industry that discusses the programme
in English)
a pilot programme - a programme to test an idea before a larger programme โครงการนำร่อง
spur further development - cause further development การพัฒนา
sustainable - can continue to exist over long periods of time ที่ยั่งยืน
boost sustainable growth - increase the amount of growth that can continue to exist over long periods of time การพัฒนาที่ยั่งยืน
a critical requirement - a very important requirement สิ่งที่จำเป็นยิ่ง
received wide attention - many people heard about it or were interested in it ได้รับความสนใจกว้างขวาง
a pilot programme - a programme to test an idea before a larger programme โครงการนำร่อง
spur further development - cause further development การพัฒนา
sustainable - can continue to exist over long periods of time ที่ยั่งยืน
boost sustainable growth - increase the amount of growth that can continue to exist over long periods of time การพัฒนาที่ยั่งยืน
a critical requirement - a very important requirement สิ่งที่จำเป็นยิ่ง
received wide attention - many people heard about it or were interested in it ได้รับความสนใจกว้างขวาง
Many smaller food producers are look forward to expanding the market for their products into exports. Pre-HAACP certification is the first step towards this goal:
Natthanan
Phandee, a trainee from Thai Yuh Healthy Food Co, which produces
vegetarian food,
said that although the company has certification for
many local standards such as GMP, this is not enough for export markets.
"The experts helped us improve production and even changed some processes that we did not think would affect the cleanness of the food," she said.
"The programme could be a passport for our products to ship abroad as demand for vegetarian food is large and there are not many players."
"The experts helped us improve production and even changed some processes that we did not think would affect the cleanness of the food," she said.
"The programme could be a passport for our products to ship abroad as demand for vegetarian food is large and there are not many players."
vegetarian food - food
without meat อาหารมังสวิรัติ
a passport for Y - would allow them to do Y เป็นใบผ่านทาง
not many players - not many peopel competing in this market ไม่มีคู่แข่งมากนัก
a passport for Y - would allow them to do Y เป็นใบผ่านทาง
not many players - not many peopel competing in this market ไม่มีคู่แข่งมากนัก
(Source: Bangkok Post, business, 400 food firms seek global standard, Smaller firms pursue HACCP compliance, WALAILAK KEERATIPIPATPONG, link)
