Increasing demand of Thai fruits in China

The ministry and supermarket Ito Yokado are jointly promoting Thai fruit in the store’s chains across Chengdu city, and is expected to expand further through nine Ito Yokado branches in Beijing.

“Thai fruit export to China will grow significantly, by no less than 37 per cent this year, thanks to good response from Chinese consumers and the joint-promotion strategy,” said Mr. Veerasak Jinarat, Assistant to Deputy Commerce Minister.

The value of Thai fruits exported to China shows a 17.44 per cent leap compared to the same period last year. The total value of fruit exported to China hit 4.9 billion Baht last year. The fruits most in demand are durian, banana, longan, mangosteen, rambutan, mango and custard apple.

Mr. Jinarat said the ministry’s strategy to cooperate with local supermarkets and retailers would ensure continuous growth for Thai fresh fruits because more and more Chinese consumers are shopping at malls instead of fresh markets nowadays. Moreover, Chengdu will function as a gateway for Thai exports to other cities in China, he added.

Jin Jing Cheng, Ito Yokado’s Deputy General Manager, said the import of Thai products and fruits at its branches should double this year.

“Not only do consumers like the taste of Thai fruit, but they are also enjoying the health benefits. Fresh fruit from Thailand is becoming very popular, and our supermarkets will increase imports to serve the higher demand,” Mr. Cheng said.

Last year, Ito Yokado sold 1.6 million yuan (8.2 million Baht) worth or 53 tons of Thai fruits in its three branches in Chengdu, a 150-per-cent increase compared to figures from 2007, all thanks to the cooperation.

Nevertheless, the export of Thai fruit to China is still facing many obstacles, including logistical issues, non-tariff barriers and distribution facilities.

Despite the free-trade agreement, Thai fruit exports to China are still subjected to a 13-percent value-added tax, and the long-winding transport adds to the costs.