Thailand's economy is poised for growth driven by the booming demand for its agricultural exports, especially durian, with significant strategies being implemented by NTF Intergroup Thailand Co., Ltd. to capitalize on this trend.
NTF, under the leadership of CEO Wichai Siramanakul, has identified the vast potential of the durian market, which is currently valued at approximately 130 billion baht ($3.9 billion) annually, showing strong signs of growth at rates between 10% to 20%. The company aims to leverage this opportunity by focusing not just on quantity but more critically on the quality of the produce it exports.
Siramanakul notes, "The market for exporting Thai durian to China is experiencing rapid growth, valued at 130 billion baht per year and with significant room for expansion." He highlights the challenges of competition, admitting, "The demand for Thai fruits, especially durian and longan, is being ignored, and we see an opportunity to bridge this gap." This is particularly relevant as only 30% of the Chinese population currently consumes durian, indicating substantial room for growth and increased market penetration.
With NTF controlling both supply and distribution processes, quality assurance takes precedence. The company promises its customers freshness, ensuring the durian is delivered within six to seven days of harvest, meeting the needs of discerning consumers who expect high standards.
NTF also boasts of strong brand development within China, operating under four brands including Mei Li and Tai Ji, appealing through both aesthetic packaging and quality taste. With revenue figures witnessing significant increases—from 14 million baht ($424,000) in 2020 to forecasts of 1 billion to 1.2 billion baht ($30.5 million to $36.5 million) this year—NTF is solidifying its position as a key player.
Despite the positive growth narrative, challenges loom as competition increases. Reports about China attempting to cultivate its own durian raises legitimate concerns, but Siramanakul remains optimistic, stating, "Even though there are news reports about China trying to grow its own durian, the current supply only covers 35% of the market." This indicates NTF's competitive advantage by timing its exports strategically.
Looking forward, NTF has ambitious plans. They intend to utilize industrial systems for processing and packaging to streamline efficiency and reduce costs, with the goal of entering the Thai Stock Exchange by 2028. This move not only signifies the company’s escalation but also its commitment to enhancing the infrastructure of agricultural exports.
The company plans to expand its reach beyond China to other markets with significant Chinese populations, including Taiwan and the United States, as well as to Europe and Asia. The demand for coconut products is also on the radar, pinpointing it as the next fruit trend due to its status as a natural beverage globally.
Wichai Siramanakul expresses pride over NTF being 100% Thai, reinforcing the local economy. He explains, "The majority of our exports involve collaboration with Chinese partners, emphasizing the dynamic nature of this trade relationship as part of our country's labor and agricultural sectors."
The growth outlook for Thailand's fruit export sector, particularly for durians, is bright. NTF's efforts to maintain quality, establish brand loyalty, and strategically navigate the potential of new markets position it to not only succeed domestically but to become a recognized name on the global stage.
With the proper investments and structures, such companies can set the precedent for Thailand's agricultural exports in the coming years, fostering greater economic resilience and creating new opportunities for Thai farmers and exporters alike.
