Distribution channel of Distribution channel of Tropical Fruits in Thailand Tropical Fruits in Thailand I mport Wholesale Local Market Retail Consumer Grower Market/ Market (Talaad Collector Thai) Contact farm/ Agreement Export Super- Processing Wholesale Supermarket Flea Mobile Export Hotel / market in Market / Restaurant Market Market Local/ BKK Market in / School (Pick- regions up truck) Consumer
In Thai Culture: In Thai Culture: Mobile Van Mobile Van (Pick- -up Truck running around villages up Truck running around villages (Pick for selling food & fruits) for selling food & fruits)
In Thai culture: In Thai culture: Bazaar Market Bazaar Market
Number of Wholesale Market (2007) (2007) Number of Wholesale Market 70 60 50 40 30 20 10 0 BKK PROVINCE TOTAL 1 69 70 RICE & CROP 4 19 23 FRUIT & VEGETABLE W/S 5 3 8 FISH WHOLESALE MARKET
he most complete and largest agricultural wholesale market
Establishment : November 12, 1995 Owner : Thai Agro Exchange Co.,Ltd. (TAECO) Land : 200 acres ( 80.92 hectors) Registered Capital : 2,000 Million Baht Value of Transaction : 400 – 600 Million baht / day Vehicle Flow : 30,000 / day No. of market : > 20 markets
T T To alaad To alaad thai thai : : 15 15 Kilometres Kilometres from from Donmuang Donmuang Airport Airport 68 Kilometres Kilometres from from Suvarnabhumi Suvarnabhumi I nternational Airport I nternational Airport 68 From Ayudaya i r u b a r a S m o r F Western outer ring road The Second Truck terminal U-turn Phahoyothin Rd. Stage Express way CALTEX Thammasat University Ragnsit Campus A.I.T Bangkhan Nong Sua Rd. Eastern outer Ring road Klong Luang-inter change U-turn Rangsit-Nakhon Nayok Rd. Don Meang Tollway Phahoyothin Rd. Meang Thong Thani Sport Complex Don Meang Airport
Talaad Thai Thai Lay Out of Talaad Lay Out of
Orange Market Land size 12,800 sq.m. Mixed Fruits Market Land size 12,800 sq.m. Seasonal Fruit Land size 40,000 sq.m. Market(Ground) Coconut Market Land size 11,200 sq.m. Water Melon Market Land size 10,000 sq.m. Farm Crops Market Land size 6,400 sq.m. Vegetable Market Land size 9,600 sq.m. Vegetable Ground Land size 20,000 sq.m. Fresh Food Market Land size 6,400 sq.m. Rice Market Land size 3,200 sq.m.
Fresh Water Fish Market (night) Land size 14,000 sq.m Fresh Water Fish Market (day) Land size 2,600 sq.m. Hygienic Meat Market Land size 800 sq.m. Pets Market Land size 800 sq.m. Plant Market Land size 4,800 sq.m. Flower Market Land size 1,300 sq.m. Assorted Market Land size 14,000 sq.m. Sweets market Land size 2,200 sq.m. Perishable One Stop Service Capacity 1,000 ton Export Center Cold Storage
Who are our customers? Who are our customers? 1. Seller Seller 1. - Collector Collector - - Farmer/Grower Farmer/Grower - Buyer 2. Buyer 2. - Wholesale Market in Region Wholesale Market in Region - - Retail Market in BKK & nearby Retail Market in BKK & nearby - - Supermarket Supermarket - - Hotel/Restaurant/School Hotel/Restaurant/School - - Bazaar Bazaar - - Pick Pick- -up truck up truck - - Consumer Consumer -
What is our responsibility? What is our responsibility? Buyer - 1) Buyer - Quality Product Quality Product 1) - Traffic & Parking Control Traffic & Parking Control - Seller - 2) Seller - Easy access to the market Easy access to the market 2) - Convenient Facilities Convenient Facilities - - Traffic & Parking Control Traffic & Parking Control - Farmer - 3) Farmer - Fair Price Fair Price 3) - Distribution Channel Distribution Channel - - Increase farmers Increase farmers’ ’ profit margin profit margin -
� � 6 lanes road with 30 metres metres wide wide 6 lanes road with 30 � � Spacious parking lot Spacious parking lot � � 24 hours security 24 hours security � � Waste Water System Waste Water System � � 3 Food centers 3 Food centers
� � Cold storage Cold storage � � POSSEC (Perishable One Stop Service Export Center) POSSEC (Perishable One Stop Service Export Center) � � 8 commercial banks/ATM. 8 commercial banks/ATM. � � Transportation Service Transportation Service (Bus/ Taxi/ Rental Truck) (Bus/ Taxi/ Rental Truck)
� Trade Liberalization/FTA Trade Liberalization/FTA � � Food Safety Food Safety � � From farm to table From farm to table � - GAP (Good Agricultural Practice) - GMP (Good Manufacturing Practice) - HACCP (Hazard Analysis Control Point) � Kitchen of the World Kitchen of the World � � Clean food good taste Clean food good taste � � Healthy Market Healthy Market �
� � Co- -operate with government policy operate with government policy Co � � Improve in ‘ ‘healthy market healthy market’ ’ policy policy Improve in � � Provide training course / information Provide training course / information to both farmers and vendors to both farmers and vendors � � Encourage the quality farmer groups Encourage the quality farmer groups � � Quality control; Conduct product test Quality control; Conduct product test by laboratory. by laboratory.
Before After
Fresh Food Market in Thailand Fresh Food Market in Thailand
The Definition The Definition ‘ Fresh Food Market Fresh Food Market’ ’ in Thailand in Thailand ‘ � Fresh food market is the food trading center for a community. I t is the traditional lifestyle of Thai people. � Most Thai people buy fruit and fresh meat for cooking from the fresh food market. � Government encourages ‘ food safety’ policy to the fresh food market � ‘Healthy Market’ is a project of Ministry of Public Health
Model of Healthy Market Model of Healthy Market
How to reach standard of How to reach standard of “Healthy Market Healthy Market” ” “ There are 3 significant qualified requirements: • Environmental health • Food safety • Consumer protection
“Impacts of Hypermarket on Impacts of Hypermarket on “ the suppliers of fresh produce the suppliers of fresh produce and its prices” ” and its prices Researched by : Nipon Poapongsakorn (Faculty of Economic, Thammasat University and Thailand Development Research I nstitute) Dated: October, 2004
Number of Modern Trade Store (Branch) 140 4500 4000 120 3500 Number Branch 100 3000 Hypermarket + Makro 80 2500 Depart ment St ore Convenient St ore 2000 60 Supermarket 1500 40 1000 20 500 0 0 1995 1996 1997 1998 1999 2000 2001 2003 Year • The significant increasing numbers of hypermarket and convenient store.
Modern trade trend Market share Market share Supermaket 8% Convenment Hypermaket 12% 32% Hypermaket 46% Dept Stores 54.3% Dept Stores Supermaket 34% 8.1% Convenment 5.6% 1997 2001
Modern trade in Thailand 2006 Modern trade in Thailand 2006 300 245 250 200 150 89 100 56 49 29 50 24 0 s s C o s r r u s p u k e o g o t a o i f r T B p M e L r x r o E a c C s s u e t T o L Source: Matichon Newspaper (15 – 21 June 2007)
Factors of Hypermarket growth � Changes in lifestyle: increase in Number of cars, time cost, less frequency of shopping and convenience � Low price than grocery � Easy to access
Consumers pay less Consumers pay less Product prices by category 125.0 120.8 118.6 118.0 120.0 115.0 108.0 106.4 110.0 Hyper- 105.1 maket 105.0 grocery 100.0 95.0 Toiletries Household goods Dry food Figure: product prices in hypermarket is cheaper than grocery stores. Source: Research paper from Faculty of Economic, Thammasat University, 2004
Hypermarket & Fresh Market Hypermarket & Fresh Market • Hypermarket has become the most popular place for consumers to buy dry food, toiletries, and household goods, while most people still prefer to buy meat, fish, fruits and vegetable from the fresh market/ wholesale market.
Purchasing behavior by different product categories Wet market Hyper market s Household Household t Dry Food Vegetable Dry Food e e s a – l i e e Fruit - b t r i a t M t a r e i e t u t l e e M i r o l F g Goods i Goods T o e T V Always Sometimes
Convenient stores & & grocer groceries ies Convenient stores • Convenient stores & grocery stores are the place for ready-to-eat food. But convenient stores have better location & well- known brand name.
Purchasing behavior by different product categories Grocery Store Convenient Store Household Household Vegetable Toiletries t Vegetable s Dry Food t Dry Food a e a Fruit - Fruit - e i e r M M t e Goods l i Goods o T Always Sometimes
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