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Bangkok Post
Bangkok Post
Business

Food producers diversify amid climate risks

Ms Chanikarn says Sweet Bee Farm has developed new products to appeal to Gen Z consumers and office workers as it seeks to broaden its customer base among younger generations.

Snack and food producers are prepared for unfavourable climate conditions this year, which are expected to affect agricultural produce.

Apirak Kosayodhin, chief executive of Lanna Agriculture Industry Co Ltd, a manufacturer and exporter of edamame (green soybean) and ready-to-eat meals, said that if an El Niño event occurs in Thailand this year, it will definitely affect agricultural production, though the severity will depend on the type of produce.

A super El Niño event, characterised by extreme heat and low rainfall, would affect both production volume and product quality for edamame.

"Authorities should prepare preventive measures to mitigate the impact of El Niño, rather than provide relief after it occurs," he said.

The company previously used databases and other measures to increase farm yields per rai, Mr Apirak said, while also adjusting its planting plan to prevent supply shortages.

Chanikarn Kowongprasert, assistant managing director of Sweet Bee Farm, producer of the Tamarind House brand, said managing tamarind production will be challenging because of its reliance on climate conditions.

The company typically sources tamarind of all sizes and grades from orchards in Phetchabun province, with the harvest season running from January to February.

Despite concerns about a super El Niño event this year, she said the company has sufficient tamarind for production, with substantial reserves stored in a frozen storage facility.

BROADER PORTFOLIO

Mr Apirak said production volumes could be affected by climate risks, so Lanna Agriculture Industry is addressing this by transforming itself from an agricultural product manufacturer into a food company.

Lanna will not depend solely on selling bulk agricultural products, but will also sell processed products and higher-value food items, he said.

Higher-value agricultural products reduce vulnerability to price competition compared with selling only raw agricultural products, Mr Apirak noted.

Other agricultural product manufacturers could adopt this approach in the future, he said.

The company previously produced original equipment manufacturer edamame products, but has since expanded into edamame snacks and chocolate-coated fruit.

Some 70% of Lanna's sales come from the US and Japan, followed by the domestic market at 22%, with the remainder generated from other countries in Southeast Asia, Europe, China and the Middle East.

Mr Apirak said the company has increased its domestic sales and recently launched its own Minnamame-brand edamame snack in Thailand.

Although Thai exporters are facing trade barriers such as tariffs, he said he believes the US market remains a major opportunity. The company plans to enter major US retail chains such as Target and Costco within five years, and its products are currently available at retailers including Trader Joe's.

Ms Chanikarn said Sweet Bee Farm is diversifying its product portfolio by adding new flavours to its existing tamarind products through a collaboration with "Rungchareon", a well-known chilli paste brand, launching French fry-style fried banana sticks, and introducing tamarind shot drinks as functional supplements.

"The company has developed new products to meet demand from Gen Z consumers and office workers, as we want to broaden our customer base to include the younger generation," she said.

Roughly 60% of sales come from the domestic market, with the remainder generated by exports. Export markets include Asian countries, the US, the UK, Australia, the Middle East and Russia.

After exports to the Middle East were disrupted for two months by the conflict, the company resumed shipments by air and sea to certain ports, Ms Chanikarn said.

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