In the second part of the article published here, we concentrate on import and export trade flows of processed tomato products
Total volume and value of Thailand’s tomato paste HS 200290 foreign trade flow in 2020
Thailand imported 23,900 metric tonnes of tomato paste worth USD 20.8 million in 2020. China accounted for the bulk of these imports (56%), followed by Chile and the United States. Imports of Chinese tomato paste amounted to a total of USD 10.9 million, while imports from Chile and the United States totaled USD 7.2 million. Imported volumes grew by 1% compared to 2019 results and by 20% compared to the average performance of the three previous years (19,800 mT, over the period running 2017-2019). Imports were also recorded from Australia, Switzerland, and Spain, in small quantities.
Tomato paste exports were relatively weak in comparison with tomato sauce exports in the same year, totaling less than USD 1.2 million, with Vietnam and Japan purchasing the highest volumes of Thai tomato paste.
Total volume and value of Thailand’s canned tomatoes HS 200210 foreign trade flow in 2020
“Diced tomatoes and whole-peeled tomatoes are produced for export,” said Karina Van Leeuwen.
Canned tomatoes were imported in small quantities, totaling 1,500 mT last year, for a value of USD 1.5 million, with most of the expenditure dedicated to imports from Italy, Australia and China in 2020.
In the same year, overall canned tomato exports were negligible, totaling just USD 0.1 million in terms of value, with Australia and Cambodia accounting for the highest combined market share of this category.
Total volume and value of Thailand’s tomato sauce HS 210320 foreign trade flow in 2020
Thailand imported 1,350 mT of tomato sauce in 2020, which was 10% higher than the average performance of the three previous years, for a total value of USD 2.75 million. The United States accounted for 29% of the imports of sauces, followed by Malaysia (20%), China (21%), and Italy (15%).
In 2020, the Thai sauces sector was more active in terms of exports than the paste and canned tomatoes sectors, with a total volume of 5,700 mT and a value of USD 9 million. Thailand exported 1.360 mT of tomato sauce to Cambodia, and lower quantities to Vietnam, Myanmar, Laos, Japan, etc.
The Thai tomato products trade balance has been recording a chronic deficit in the tomato paste and canned tomatoes categories. Over the past five years, the national tomato processing industry has met only about one quarter of domestic needs.
Some of the leading tomato processing companies in Thailand
Thai Soon Foods Company Limited
The Thai Soon Foods Co., Ltd. is one of the oldest Thai tomato processors, having started its operations in October 1988. The company was set up under the Thai Board of Investment. Since then, Thai Soon Foods has been exporting its processed tomatoes and other products worldwide. Due to its strategic location in the northeast of the country, the company has been able to attract high-end clients in Japan and elsewhere. More than 50% of the finished products are exported. Each batch is custom ordered, at a premium price, with the buyer specifying all details of the production process, from seed variety and soil preparation to agrochemical use and processing specifications.
The following processed tomato products are manufactured by Thai Soon Foods:
• diced tomato
• tomato paste
• tomato puree
• tomato ketchup
• whole-peeled tomatoes
Some of the key clients of Thai Soon Foods include Del Monte, Malee, Pizza Hut, Jusco, Aeon, etc.
Doi Kham Food Products Company Limited
The Doi Kham Food Products Company Ltd. was founded according to the vision of His Majesty King Bhumibol Adulyadej to eliminate poverty and enhance the quality of life of people living in the mountains in the north of Thailand. It all began in 1972 when the First Royal Factory was initiated. The Royal Factories buy agricultural produce from local farmers in the area to develop and process into high-quality healthy products at a fair price. In the initial stages, production was modest, with a range of two product categories consisting of 10 items.
In 1994, the project was legally registered as a trading company under the name “Doi Kham Food Products Co., Ltd.” operating as a “socially conscious” business initiative. The fruit processing enterprise aimed to be the prototype for a social business inspired by the king’s philosophy of sustainability that would strengthen and develop communities in order to enhance quality of life in a long-lasting manner.
At present, Doi Kham offers more than 220 products in 22 categories, and operates 36 retail shops as well as 13 franchise outlets nationwide.
Doi Kham currently operates three Royal Factories, namely:
• the First Royal Factory (Fang), Chiang Mai
• the Second Royal Factory (Mae Chan), Chiang Rai
• the Third Royal Factory (Tao Ngoi), Sakon Nakhon
The following processed tomato products are manufactured by Doi Kham Food:
• tomato juice, 99%, 200 ml, retail price: 15 baht (0.48 USD), and 1,000 ml, retail price: 67 baht (2.14 USD)
• tomato juice, 98%, with mixed fruit juice, 200 ml, retail price: 17 baht (0.54 USD) and 1000 ml retail price: 73 baht (2.33 USD)
• tomato juice, 99%, low sodium, 200 ml, retail price: 17 baht (0.54 USD)
• dehydrated cherry tomato, 25 g, retail price: 20 baht (0.64 USD), 36 sachets per box, and 140 g, retail price: 88 baht (2.81 USD), 12 sachets per box
• tomato spread, 220 ml, retail price: 80 baht (2.56 USD), 12 bottles per carton
• tomato ketchup, 350 g, retail price: 36 baht (1.15 USD), 12 bottles per carton
• tomato ketchup, low sodium, 200 g, retail price: 39 baht (1.25 USD), 12 bottles per carton
• tomato juice 100%, 20 oz (567 g), retail price: 35 baht (1.12 USD), 24 cans per carton.
Juice maker Doi Kham uses tomatoes grown by 5,000 farmers nationwide, and has been famous for decades as the tomato production hub of the northeast. The region’s sustainable farming legacy was based on the late King Bhumibol’s self-reliance scheme, initiated in the 1950s. Farmers in the district were dependent on rice crops, which meant that they experienced unstable income and hardship until the king’s visit to Sakon Nakhon in 1980. He provided a solution for the chronic difficulties that the farmers in the region were experiencing.
As a result, the “tomato belt” was born, a region where about 30,000 rai (approx. 4,800 hectares) of tomato crops were planted. Two years later, a processing factory for tomatoes and other produce was established at Tao Ngoi. It was the first factory in the Mun River basin and the third factory owned and operated by Doi Kham Food Products Co. Ltd. The Tao Ngoi processing factory mainly produces tomato paste and dehydrated fruits, buying the produce not only from Sakon Nakhon but also from other nearby provinces, including Nakhon Phanom, lower Ubon Ratchathani, Surin, Buri Ram, and Sri Saket.
Yupaporn Charoensuk, Manager of the Tao Ngoi factory, stated that it supports villagers who wish to farm tomatoes within a radius of 150 kilometers from the factory, by providing tomato seeds and farming technology.
Hi-Q Food Products Company Limited
The Hi-Q Food Products Company Ltd. was established in 1986 with the aim of exporting to international markets.
In 1996, Hi-Q Food Products increased its registered capital to THB 70 million and was able to legally buy at auction the trademark rights to the “Roza” brand, thereby becoming one of the leading processed food manufacturers in Thailand.
The company has two factories, one in Bangbo and one in the Chachoengsao district.
Srichiengmai Industry Company Limited
The Srichiengmai Industry Company Ltd. (SAI) was launched in 1980 when Mr. Jaktiek Unjittikul started trading tomatoes after encouraging farmers in the northeast of Thailand to grow the fruit. He then helped create a new market for these tomatoes by bringing them to Bangkok and selling them to national food manufacturers.
To provide increased value for the tomato farmers, SAI set up a factory, the first of its kind, in the northeast of Thailand. Constructed with state-of-the-art tomato processing equipment from Italy, initial orders were to provide tomato paste (which remains the key product to this day) to manufacturers of tinned sardines and to tomato ketchup producer Heinz, for whom SAI still provides tomato paste at the present time.
Since the start of operations, close collaborations with farmers continue to enable a contract-farming approach through which growers in the area surrounding the factory provide high quality raw materials in exchange for financial support and agricultural expertise from SAI. The company’s contract farming network currently consists of around 4,000 farming families.
As the first Thai tomato paste factory to receive international certifications HACCP, GMP and HALAL, SAI has grown to be the leading Thai supplier of tomato products and other processed fruit and vegetable products to both the domestic and international markets, particularly to Australia, Japan, Hong Kong, Singapore, South Korea, and Taiwan. As well as acting as an OEM, SAI also has its own brand of tomato paste and diced tomatoes called “Buck Lane”.
SAI uses state-of-the-art tomato processing technology with key equipment imported from Italy. Processes include a hot-break system, evaporators and aseptic filling. SAI makes high quality tomato paste suitable for use in either ketchup or reconstituted tomato juice for pizza base sauces and as a flavor to enrich many other sauces. SAI tomato paste is made from ripened tomatoes with skin and seeds removed. The company’s international processing standards and machinery enable them to process up to 100 tonnes of tomato paste per day and 8,000 tonnes of tomato paste per year.
SAI provides tomato paste, diced tomatoes and whole tomatoes in the following formats: 220 kg drums, A10 (3 kg) cans and 425 g cans.
Yan Wal Yun Corporation
Tomato sauce brand: Healthy Boy
Yan Wal Yun is one of the largest sauce companies in Thailand. Its products are largely sold under the “Healthy Boy” brand. It was founded in 1947 by the Tangsombatvisit family. In 1954, the factory expanded for the first time, moving to Sathon, Bangkok, with an area that was ten times larger than the previous factory. A few decades later, the company registered as a limited company. Once again, in 1980, the factory was expanded, and was moved to Tha Chin, Mueang Samut Sakhon. The Islamic Council of Thailand then gave Yan Wal Yun the halal seal accreditation, giving them permission to display the seal on all of their products. This happened right before the company expanded once again, this time overseas. Yan Wal Yun was the first company to be granted the Thai Industrial Standards award in the soy sauce category, which ensures quality and consistency worldwide. Besides Healthy Boy, the company's brands also include i-Chef and Maxchup. The company claims a condiments market share of 82% in Thailand. In 1980, Yan Wal Yun, originally a family business, shifted to a more professional management system and began to expand its product range. In 1985, the company began exporting outside Thailand for the first time.
Thai Theparos Public Company Limited
The Thai Theparos Public Company Ltd. manufactures and distributes sauces and condiments in Thailand and internationally. It offers seasoning food products under the Golden Mountain brand, including seasoning sauces, chili sauces, distilled vinegar products, tomato ketchups, chili and tomato sauces, and oyster sauces, as well as fermented soy sauces, powdered sauces, including fermented soy sauce powders. Its chili sauces are sold under the Sriraja Panich brand, and Japanese soy sauce is sold under the Kinzan Shoyu brand. The company was formerly known as Thai Theparos Food Products Public Company Limited and changed its name to Thai Theparos Public Company Limited in April 2011. Thai Theparos was founded in 1954 and is headquartered in Muang, Thailand.
Malee Group Public Company Limited
Tomato juice brand: Malee
The Malee Group Public Company Ltd., formerly known as the Malee Sampran Public Company Limited, is a Thailand-based company engaged in manufacturing and distributing canned agricultural products, fruit juices, and non-alcoholic beverages. The company markets products that include fruit juices mixed with mineral water, coconut water, vegetable and fruit juices, pasteurized juices with pulp, canned fruits in syrup, corn milk and pasteurized whole milk. The products are distributed under the Malee brand in both domestic and international markets. The company also offers contracted manufacturing business services, which are responsible for the manufacturing of beverage products under the company’s own brand and those of its business alliances. The company’s subsidiaries include Malee Enterprise Company Limited, Icon Foods, Malee Harvest Company Limited, and Agri Sol Company Limited.
Source: Shruti Sasidharan (Consultant)
