Today I visited KC Fresh. This is a company that produces fresh vegetables and fruits for both the domestic and export markets. Specifically they produce many Chinese vegetables and tropical fruits. I first visited a packing house and farm run by one of the farmers that grows vegetables for them. I saw Ung Choi (Chinese Morning Glory) being harvested which is the first picture below. We also visited fields of Basil and Lemongrass. There are several growers in this group and they all bring their produce to this lady’s small packing house. She also manages the planting to ensure a steady supply of product. They are very careful about food safety including testing their irrigation water to make sure there isn’t any contamination. The second picture shows a post that has the land and block number on it so that the products can be traced back to the small block where they were grown. The company treated me to lunch at a local restaurant where we tried some of their products. Everything was really good. After lunch I met with Carin Joubert. She is a Technical Consultant originally from South Africa. She makes sure that all of the requirements are met so that they can export to England, the Netherlands, Switzerland, Austria, Hong Kong and Japan. Over the years she has worked in many countries around the world. We discussed the challenges of working with the Thai farmers who only have .6 hectares of land on average. Many of her biggest challenges have to do with language problems; they don’t have words for many of the technical words we use in dealing with food safety. I really enjoyed talking to Carin and we had a wonderful discussion. She feels that she is making a difference in these farmers’ lives and I agree with her. This is a very interesting operation.
Wednesday, May 14, 2008
The Royal Project
On Tuesday I visited the Royal Project Development Center at Inthanon and the Inthanon Royal Research Station. This is one of the 36 Royal Project sites. The Royal Project began in 1969 when the King visited this area and observed how the hill tribe people were living. They were producing Opium Poppy and not making much money. The King set forth a vision of a new life for the hill tribes that included a better lifestyle and didn’t include opium production. Today there is no opium production in Thailand, instead the hill tribe people produce over 350 different fruit, vegetable, flower and fish products that many people thought could not be produced here. The station is on a mountain and the high elevation makes it possible to produce plants that usually grow in colder climates. Plants have been imported from all over the world and a lot of research has been done on which ones grow the best. This is the only project in the world to get rid of opium production, just think how wonderful it would be if similar things could happen in Afghanistan or in Columbia with cocaine production. They showed me their food safety and traceability systems. Most of the products are sold domestically but some are exported to Europe so they meet all of the Europe GAP requirements. They also supply the vegetables and fruit for Thai Airways in-flight meals. I got to talk to a farmer who produces celery and Chrysanthemums. He told me that he is rich by Thailand standards. He has about 1 million THB (33,333 USD) in annual sales and about half of that is profit. The average income for this area is 80,000 THB. The first picture below is of some workers peeling carrots before quick chilling them for transport. The second picture is their aquaculture operation that produces Rainbow Trout, which is a high value item in Thailand. The third picture is of a lady spreading fertilizer by hand in one of the “plastic houses” on the operation where I talked to the farmer. The forth picture is one of the beautiful flowers they produce for the domestic cut flower market and the fifth picture is of a young lady packaging some long stemmed roses for sale. The last picture is a view of some of the many plastic greenhouses on this mountain.
Monday, May 12, 2008
OSU Links & Zoo
Chiang Mai Tour
Chiang Mai Sightseeing
Friday, May 9, 2008
KU Kamphaengsaen Beef Producer Co-op
Today I had a translator for the first time in Thailand. Her shortened name is Ja and she is a veterinary student at the university we visited. I really enjoyed visiting with her on the way to and from our meeting. We traveled to Nakhon Pathom Province to the KU Kamphangsaen Campus Beef Producer Cooperative. By the way KU stands for Kasetsart University not The University of Kansas. The university has developed a breed of cattle that is well suited to Thailand’s tropical climate. They crossed the native cattle with Brahman and then crossed the offspring with Charolais cattle. The new breed is 25% Native, 25% Brahman and 50% Charolais. They call it Kamphangsaen. After developing the breed they started building a network of farms to raise these cattle. There are Cow-Calf, Stocker and Feed Lot phases and the individual producers are members of the cooperative. In addition to being paid for their cattle based on carcass score when they sell them to the co-op they also share in any profits the co-op makes at the end of the year. The first picture below is of one of their T-Bone steaks. The second picture is of an RFID ear tag that is used in their national tracing system. Foot and Mouth Disease still exists in some parts of this country, mostly near the borders, so it is important to know where cattle are coming from. The members also keep detailed health records on each animal. The co-op is growing fast with about 800 head slaughtered in 2006 and 1622 head in 2007. Demand continues to grow in Thailand but they cannot export because of FMD. The third picture below is a steer at a feed lot farm; their steers are about 3 years old when they go to slaughter. They also run their own restaurant on campus. When you enter their location there is a large sign over the gate that says Cowboy Land and has a cowboy on a horse roping a steer. There are also signs for Texas Steak and the last picture is of the entrance to the restaurant, notice the cowboy and Indian décor complete with teepees. We ate at the restaurant and I had a ribeye steak it was good and tender but it was cut very thin by U.S. standards.
Thursday, May 8, 2008
Betagro
On Thursday morning I went to meet Dr. Arayan Trangarn at the Betagro headquarters. Betagro is a privately owned company that is also involved in the poultry and hog integration industry here in Thailand. They also have some operations in China, Laos, Vietnam and Cambodia. The owner of the company is a Chinese gentleman who immigrated to Thailand many years ago and started with nothing. He first started a feed mill and then expanded into the poultry and swine industries. They are involved in many of the same operations as the CP Group but they don’t really seem to have a competitive relationship. Betagro actually benefits from some of the lobbying activities and influence that CP Group has. We first met with the CEO of the company and then we traveled to Lopburi Province to their Food Complex 1. They chose this location because it is near the corn production area of Thailand but they still have to import a lot of their feed ingredients from other countries. They are now considering locating any new plants they build closer to the port because of the increase in transportation costs. When the Avian Influenza outbreak occurred in Thailand they were impacted and had a cull a large number of birds. Since then there have been many changes to their operations. In hindsight Dr. Trangarn thinks it has been a positive thing for the company. In addition to instituting more advanced practices and more security on their farms, they have also had to build new plants to further process their chicken thus adding value to their products. They currently export these cooked products to the EU and Japan. They were the first company to use an electronic traceability program in Thailand. It is all computerized and is quite impressive in the detail that they can access. Consumers can not access it over the internet yet but they do have what they call “Spy on Me” terminals in some domestic supermarkets where some of the information can be accessed. These terminals also give recipes for how to cook the products, which consumers seem to be more interested in than the traceability information. The traceability system at this plant requires 20 full-time employees and costs more than 1 million Baht per year and that number would at least double if it included all of the other parts of the production process. We toured the further processing plant and it was a very sanitary facility and I had to put on a lot more protective clothing and wash my hands many more times than I would to tour a plant in the U.S. The major difference that I noticed was that they were doing a lot of hand slicing and cubing of the product. Labor here is cheap and so they can do this kind of time consuming processing. However there is a shortage of labor and they would like to open another plant to produce more skewered products for the Japanese market but they aren’t sure they can find the workforce. Even though labor costs are low the cost of feed still makes producing chicken in Thailand more expensive than in the U.S. so they are not sure that they would support a Free Trade Agreement. As always no photos were allowed in the plant.On the way back to Bangkok we made an unscheduled stop at a huge wholesale market. This one was much cleaner than the one I saw in China with the Oklahoma Agricultural Leadership Program Group. The meat section still wouldn’t meet U.S. standards. Below is a picture of one of the poultry vendors and another of a fruit stand. The bottom picture is of some of the fruits that Dr. Trangarn bought for me to try. Clockwise they are a Rose Apple, a Rambutan, a Mangosteen, Lychees and Longans.


