Tropical fruit cultivation as a successful business in Thailand

Situated in the tropics between the latitude of 5deg to 20 deg N, Thailand has climate conditions and geography that are suitable for fruit crops. An estimated 1,000 varieties of wild and cultivated tropical and sub-tropical fruits are found growing in the country under various systems including natural growth in the forest and cultivated growth in home gardens and commercial plantations. More than 100 varieties are commercially cultivated for local uses and export. Of these, mango has the largest production areas of more than three hundred thousand hectares throughout the country followed by longan, durian, pineapple, citrus, rambutan, mangosteen, lychee, banana and others. Most of tropical fruits are consumed domestically and approximately 5% are exported. In the world market, Thailand is the largest exporter of canned pineapple, longan durian and mangosteen. Tropical fruit cultivation is considered a successful business in Thailand and the production areas have been expanded gradually. In this presentation, various components along the supply chain of Thai tropical fruit business including geographic location, fruit cultivars, appropriated cultivation technologies and marketing will be discussed in relation to both domestic and international trade. Certain fruit crops such as durian, mangosteen, rambutan and mango can be cultivated in different regions with different climate and topography to expand their harvesting season and market window. Unique fruit cultivars of Thailand with high quality enhance their competitiveness in the world market despite the perishable and short shelf life nature. Flower induction technology by chemical such as the use of paclobutrazol for mango and the use of potassium chlorate for longan has been successfully practice leading to a year round production of mango and significant expansion of longan production areas from Northern Region to other regions where climatic conditions are sub-optimum for natural flowering. Good Agricultural Practice(GAP)guidelines have been developed by the Department of Agriculture to ensure production safety, environmental safety, productivity, quality and production sustainability of fruit crops. For the export market, fruit production, harvesting and post-harvest handling must strictly follow the protocol under a close monitor by an export company and government agency to meet the international standard. In addition to the conventional marketing system were many middlemen involved and growers have the lowest power in the supply chain, contract farming has an important role in the marketing component and currently enhances the success of Thai tropical fruit business. An example of successful contract farming for tropical fruits will be elaborated. Standard tropical fruit products including fruit juice,concentrate, puree, canned fruits, oven-dried, freezed-dried and different forms of preservation are on high demand for both domestic and international markets. New products such as prepared fruits (ready to eat)in a nice package has a bright future as a niche that fits well with current lifestyles of consumers.The free trade agreement(FTA) with China, Japan and Australia and more opened international trade policy of the United States increase the export value of Thai tropical fruits but at the same time a significant increase in apples and pears from China in the domestic markets following FTA has a considerable impact on Thai fruits. An improvement in orchard management to reduce production cost and better marketing system are of importance to ensure the success of Thai tropical fruit business.