OPERATIONS
The Company is Holding and Investment Company (HIC) currently follows a policy of investing in basic lines of agro-industries. In the mid year 2010, the Company has restructuring its business and the major operation are as follows:
1. Canned and Pouched sweet corn products business : River Kwai International Food Industry Co., Ltd. (River Kwai), HIC holds 99.99 percent of the registered and paid up capital of THB 266 million, River Kwai is the sweet corn manufacturer by processing and packaging in cans and vacuum bags. The products are mostly exported and partly sells in domestic market through supermarkets under the brand "Tastee" and “River Kwai”.
2. Fresh vegetable and fruit : AgriFresh Co., Ltd., River Kwai holds 100 percent of the registered and paid up capital of THB 1 million. The company operates by selecting, processing, packaging , and shipping fresh vegetables and fresh fruits to export markets
3. Tetra Recart Packaging : River Kwai has introduced a new packa ging technology for fully-integrated in sweet corn, pineapple, mixed fruit product and other products. The packaging system is based on Tetra Pak’s Tetra Recart packaging system which is a square laminated paperboard and easy-to-open carton.
4. Sweet corn seed : The transaction is conducted by the company. Sweet Corn Products Co., Ltd. (SCP), River Kwai International Food Industry Co., Ltd. (River Kwai) holds 75 percent of the THB 5 million in registered and paid up capital. The main businesses of SCP are seed development and production, promotion of cultivation, seed selling.
REVENUES BY SOURCE & YEAR
(millions of baht) |
Year |
2008 |
2009 |
2010 |
Source |
Value |
%Change |
Value |
%Change |
Value |
%Change |
Processed sweet corn |
850.80 |
55.75% |
646.45 |
55.31% |
537.31 |
60.47% |
Exported fresh vegetables |
499.33 |
32.73% |
353.33 |
30.23% |
215.06 |
24.20% |
Domestic sales |
88.75 |
5.82% |
78.21 |
6.69% |
40.48 |
4.56% |
Seed sales |
87.04* |
5.70% |
90.73* |
7.77% |
95.69* |
10.77% |
Total |
1,525.92 |
100.00 |
1,168.72 |
100.00 |
888.73 |
100.00 |
*Seed Sales of 2008 to 2010 derived from River Kwai , AgriFresh and Sweet Corn Products Co., Ltd.
Our Business Goals
1. The business Diversification
Although the demand of processed agricultural products in world market is still high but the canned sweet corn product of the company is facing with price stiff competition among other manufacturers in Thailand and those in countries like the U.S., France and Hungary who want to maintain their market shares in order to ensure their survival in this business. It is, therefore, expected that many countries will implement strong trade protectionism measures, in addition to the anti-dumping measure used by European Union against products from Thailand.
Vegetables and fruits exporting business by air is our main focus. We do believe that Thai’s vegetables and fruits have high quality, combining with our selecting and packaging processes, our products can be guaranteed the freshness and quality.
The restructuring of our organization could be carried out in many ways such as fostering a partnership with companies that have similar business concept, carrying out a study on how to operate and expand the business together and reducing operation cost. This type of cluster or partnership will enable us to compete with other manufacturers both in Thailand and in foreign countries.
In order to diversify our risk, the holding and investing company will try to combine other companies from various businesses to our portfolio. However, the main focus will be on agriculture business but in different areas such as tuna, rice, and frozen fruits.
2. Increase Production Productivity by Using Modern Technology
Although this company was found for decades, we never stopped developing our company even we well aware that we are already a good company and have high quality products. Because we know that if we can have better production, management, and procedure, all the profit will be on all parties, our customers, our company and our shareholders. Therefore, we keep developing and searching for a new technology to help our way to be a greater good company. Not only the modern technology that we invested, but also our human resource which is considered to be the most important factor in stabilize growth of the company.
Industry overview
At present, RKIFI is the sole producer dedicated to processed sweet corn in Thailand. Other producers handle a range of vegetables and fruits, producing sweet corn only occasionally.
1. Data from the Customs Department indicate Thailand exported canned sweet corn in 2009, valued at 5,105.88 million bahtand valued at 5,108.50 million baht in 2010 to the following countries:
|
SWEET
CORN EXPORT MARKETS BY VALUE & GROWTH : 2008-2010
(millions of baht) |
|
2008 |
2009 |
2010
|
|
Rank
|
Country |
Value |
Rank |
Country |
Value |
%Change |
Rank |
Country |
Value |
%Change |
|
1
|
Other |
1,688.97 |
1
|
Other |
|
22.30% |
1
|
Other |
1,772.53 |
-7.13% |
|
2
|
UK |
620.80 |
2
|
Japan |
708.67 |
52.02% |
2
|
Japan |
673.07 |
-5.02% |
|
3
|
Russia |
578.79 |
3
|
UK |
632.87 |
1.94% |
3
|
Russia |
493.81 |
9.22% |
|
4
|
Japan |
466.15 |
4
|
Russia |
452.11 |
-21.89% |
4
|
Korea,R |
449.34 |
134.89% |
| 5 |
Korea,R |
307.82 |
5 |
Taiwan |
318.45 |
18.49% |
5 |
Taiwan |
436.65 |
37.12% |
| 6 |
Netherlands |
295.58 |
6 |
Germany |
209.53 |
-14.65% |
6 |
UK |
395.65 |
-37.48% |
| 7 |
Taiwan |
268.76 |
7 |
Korea |
191.30 |
-37.85% |
7 |
Iran |
|
22.08% |
| 8 |
Germany |
245.50 |
8 |
Norway |
179.31 |
37.45% |
8 |
Philippines |
205.29 |
36.87% |
| 9 |
Norway |
130.45 |
9 |
US |
176.13 |
73.22% |
9 |
Australia |
180.70 |
22.02% |
| 10 |
Sweden |
120.63 |
10 |
Iran |
175.13 |
192.32% |
10 |
US |
145.48 |
17.40% |
| 11 |
Australia |
119.99 |
11 |
Philppines |
149.99 |
87.44% |
11 |
Norway |
142.18 |
20.71% |
| |
Total |
4,843.44 |
|
|
5,105.88 |
5.42% |
|
|
|
31.40% |
Source : Customs Dept. Product category 20058000000
|
RIVER
KWAI EXPORT VALUES : 2008-2010
(millions of baht)
|
|
2008 |
2009 |
2010 |
| Value |
%
of total exports |
Value |
%
of total exports |
|
Value |
%
of total exports |
|
| 850.8 |
55.75 |
646.45 |
55.31% |
|
537.31 |
60.47% |
|
The following table ranks the various export markets by share of total exports and the rates of growth of those markets
|
EXPORT
MARKETS : 2003
|
|
%
share of total
|
Fastest
growing by rank
|
|
25.5%
|
Japan
|
320.1%
|
|
18.8
|
Holland
|
234.1%
|
|
10.9%
|
US
|
175.2%
|
|
9.2%
|
Spain
|
95.0%
|
|
9.1%
|
Germany
|
20.7%
|
|
4.9%
|
UK
|
20.2%
|
|
4.8%
|
Korea
|
16.9%
|
|
4.0%
|
Lebanon
|
3.0%
|
|
2.8%
|
Russia
|
-37.2%
|
2.
Prices of processed sweet corn products in major world markets
are dictated by large producers, especially those in the US, with
competition based on price and quality.
3.
In the global market, the consumption of processed sweet corn
has great potential for growth and the Thai share of that market
is still relatively small, offering plenty of opportunity for
continuing growth.
4. The Thai domestic market for processed sweet corn is expanding,
as the product becomes increasingly popular. This has attracted
some big players, increasing competition.
Important producer countries
The
largest producing countries are in North America - the US and
Canada - and Europe - France, Hungary, and Italy. The ten largest
exporting countries accounted for some 97 percent of the world
total in 2002 with Thailand ranking 4th and accounting for some
8%, and HIC accounting for between 31 - 33% of that amount.
TOP 10 SWEET CORN EXPORTING COUNTRIES BY VALUE & RANK 2007-2009 |
(US$ millions) |
2007 |
2008 |
2009 |
Rank |
Country |
Value |
Rank |
Country |
Value |
Rank |
Country |
Value |
1 |
France |
192.1 |
1 |
Hungary |
195.67 |
1 |
France |
177.18 |
2 |
Hungary |
153.98 |
2 |
France |
194.15 |
2 |
Hungary |
167.59 |
3 |
Thailand |
133.79 |
3 |
Thailand |
145.59 |
3 |
Thailand |
149.76 |
4 |
US |
117.31 |
4 |
US |
120.26 |
4 |
US |
117.63 |
5 |
Canada |
17.7 |
5 |
China |
30.87 |
5 |
Belgium - Luxembourg |
32.37 |
6 |
Belgium-Luxembourg |
17.46 |
6 |
Belgium - Luxembourg |
29.28 |
6 |
China |
31.54 |
7 |
Italy |
13.21 |
7 |
Canada |
20.22 |
7 |
Italy |
12.82 |
8 |
China |
12.08 |
8 |
Germany |
14.2 |
8 |
Netherland |
11.35 |
9 |
Brazil |
10.51 |
9 |
Italy |
13.36 |
9 |
Italy |
10.54 |
10 |
Germany |
9.15 |
10 |
Netherland |
11.35 |
10 |
Brazil |
10.41 |
|
Total : |
677.29 |
|
|
774.95 |
|
|
721.19 |
|
Other : |
54.26 |
|
|
65.83 |
|
|
62.11 |
|
Grand total : |
731.55 |
|
|
840.78 |
|
|
783.3 |
* Trading only
Source : FAO (Sweet corn prepared
or preserved other than by vinegar or acetic acid, not frozen)
