Supply-chain development for fresh fruits and vegetables in Thailand

Abstract

In this case study two supply-chain development projects in Thailand are analysed: 1. TOPS Thailand: introduction of food safety standards for the domestic market. 2. Fresh Partners: development of an integrated quality chain for the export market. TOPS Thailand is a retail company with about 50 supermarkets in Bangkok and Chiangmai. The management decided to introduce a certification system for food safety in order to improve their competitive position and to consolidate their image of a quality supermarket. The introduction resulted in a system of preferred suppliers that had to obtain a certificate for good agricultural practices from the Department of Agriculture. The number of suppliers sharply dropped in the course of the project period. Fresh Partners Thailand is an export company shipping exotic vegetables from Thailand to The Netherlands and surrounding countries in Europe. The management decided to develop an integrated quality chain in order to comply with the increasing food safety requirements in the European Union and Japan. The investments in quality systems coincide with a growing demand for exotic vegetables in northwestern Europe. Consequently export volumes and numbers of smallholders and labourers are rapidly growing.