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Japanese Plan Co-marketing Campaign For Thai Tunaff

2 October 2007 Japan

The Japanese Department of Export Promotion will work with the Thai Frozen Foods Association to draw up a joint marketing plan to access more of the Japanese safe-food market after bilateral trade frees up further early next month.

”We
should have a co-marketing plan between the government and the private sector that directly captures our targeted customers and makes them aware of Thailand’ food industry image,” DEP director-general Rachane Potjanasuntorn said last week.

Frozen food is the priority, but there are many channels that food manufacturers should home in on. They should also group together to reinforce their competitiveness, he said.

The Japan-Thailand Economic Partnership (Jtepa) - scheduled for implementation on November 1 - will open up the Japanese market to Thai farm and industrial goods, as well as services.

The elimination of regulations and import duties will lend the Kingdom’ exports an advantage over export rivals, particularly for frozen food like shrimp and tuna.

The department will call a meeting with the association soon.

The promotional plan will cover not just certain cities in Japan but the whole country.

The initial targets there are chain stores, cooperatives and CGC, a large grocery chain that could help distribute Thai food products through its nationwide network.

Co-op, which is a collaboration of small retailers to beef up their bargaining power, has more than 1,000 members and the CGC grocery chain operates more than 2,000 shops across the country.

If Thailand can catch those customers, it will be easier to distribute products across Japan, Rachane said.

Poj Aramwattananont, president of the association, said Japanese buyers wanted to order directly from Thai manufacturers rather than through middlemen or traders to cut out costs and purchasing procedures.

”It is a good strategy to have both marketing and promotions to access directly to retail buyers,” Poj said.

The Jtepa is expected to increase Thailand’s share of Japan’s shrimp imports from the current 20 per cent to 30-35 per cent.

The United States is the biggest customer for Thai shrimp, accounting for 50-55 per cent of exports worth US$2 billion (Bt69 billion) last year.

The department will also push forward with its internationalization plan to encourage 17,000 exporters to explore more opportunities overseas especially in Japan.

A total of 195 companies have already registered with the department with the focus on establishing a foothold in Vietnam, Laos, Cambodia or China.

To qualify, companies should already be good performers in the domestic market and be excited about exploring greener pastures abroad.

”The project aims to increase the value chain of Thai businesses both here and abroad. Successful businessmen will enjoy more income and a broader business network,” Rachane said.

With the department’s support, they can also access loans from banks more easily.

The project will concentrate first on services, including restaurants, spas and Thai massage, and hospital management, he added.