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Sat, November 25, 2006 : Last updated 21:11 pm (Thai local time)



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Home > Business > Firm expands to farm services





AGRICULTURE
Firm expands to farm services

Chia Tai moves on from the seed trade to broaden its product range

Chia Tai, the country's biggest seed-developer and exporter, has invested more than Bt100 million

to set up its new plant with the latest seed technology so as to make itself an integrated agricultural-service provider.

The company reached its goal in January last year when it established Chia Tai Produce to focus on fruit-trad-ing and Chia Tai Cultivation Technology to provide farm consulting.

The company's agricultural services now include seeds, ferti-liser, plant protection, farms, distributor-ships and consulting.

Six companies operate under the Chia Tai Group's umbrella: Chia Tai Seed, South-East Agricultural, Chon-charoen Farm, Agro Chemical Industry and the two new companies.

Having these services will encourage the company to access more international markets and achieve the goal of becoming a regional leader.

"We are the pioneer of seed-technology development, and it is our strength. We will con-tinue to focus on advanced technology to ensure we are the market leader," said president Manu Chiaravanond.

Located on 5,200 square metres in Omnoi district, Samut Sakhon, the company's seed operation centre has installed the latest seed technology, in-cluding purity checks and protein electrophoresis to improve seed quality.

Executive vice president Manus Chiaravanond said the company exported to 30 coun-tries focusing mainly on Asia: India, Pakistan, Sri Lanka, Nepal and Asean countries.

In addition, there are two research and development centres in Kunming, China, and Surabaya, Indonesia, and three centres in Thailand: Chiang Mai, Kanchanaburi, and Ratchburi.

The company spends about 13 per cent of its total sale revenue, which reached Bt10 billion last year, for research and development. Of the total, exports account for 60-65 per cent.

"We are the market leader in the seed business with 30 per cent of the total market of Bt1 billion in Thailand, and among the top three in the region," Manus said, adding that other major seed exporters in the region are the Dutch-based East West Seed and Nam Dari of India.

He added that the company has concentrated on seed technology and development for 85 years.

Over the past 10 years, the company has successfully de-veloped varieties of hybrid

breeds focusing on fruit and vegetables.

So far its strategic crops include melons, sweet peppers, cabbage, watermelons, tomatoes, cucumbers and pumpkins, all of which created the company's great business opportunity in both domestic and overseas markets.

Along with the two new companies, nearly 100 farmers have come under the company's contract-farming system to grow hybrid melons in Suphan Buri and Chon Buri.

"Chia Tai Produce will focus on niche marketing, selling only quality fruit grown on our contract farms. It is our business model and will be expanded in the near future," Manus said.

Next year, farmers in Chiang Mai, Chiang Rai, Lumphun, Khon Kaen and Sakon Nakhon will be promoted to grow sweet peppers, seedless watermelons and Chinese kale.

Chia Tai Cultivation Technology has been set up to assist farmers who want to develop farming technology.

The services include farm management consulting, crop demonstration and finding sources of funding.

Manus noted that one of the most important problems in the seed business was piracy, which occurred in both local and overseas markets.

The private sector has urged the government to amend the Plants and Animal Law to more protect new hybrids.

"Piracy has caused business losses and damaged the quality of fruit," said Manu, noting that Thailand should create tools that shield the country's benefits from outsiders.

Manus said the government should also consider ways to increase farm prices to allow farmers to adapt higher technology to ensure high quality and yields.

Achara Pongvutitham

The Nation








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