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New Alliance To Boost Thai Fruit Sales in China

April 29, 2024

According to Thai media reports, four cooperation agreements aimed at expanding the presence of high-quality Thai fruit on the Chinese market were recently signed between Shenzhen Pagoda Industrial Group Corp. Ltd. and Thailand’s Marketing Organization for Farmers.

During the signing ceremony, Pagoda’s chairman, Yu Huiyong, stated that the new collaboration is aimed at promoting the expansion of premium Thai fruit in China, contributing to food security and the industry’s sustainability across the Asia-Pacific region. Yu highlighted that Pagoda had previously procured over 220,000 metric tons of high-quality fruit from Thailand through partnerships with local orchards and packaging plants.

According to Pagoda, the company’s rigorous selection process ensures that only high-quality fruit is supplied to its approximately 6,000 retail stores throughout China. The fruit is typically sourced from diverse production areas featuring unique cultivation environments. Pagoda claims to adhere to the principle of allowing fruit to ripen naturally and only markets it during the peak flavor season. Additionally, the company runs over 200 tests on imported fruit to guarantee consumer safety.

This year’s Thai Fruit Festival, which will be held in China on May 8–14, will be jointly organized by Thailand’s Department of Agriculture, the Thai Embassy in Beijing and Pagoda.

In light of rising competition from other fruit-exporting countries, particularly Vietnam, which has recently boosted its durian shipments to China, Thailand’s fresh fruit sector appears to be seeking new alliances while reinforcing existing ones, including those at the governmental level. Aside from the cooperation agreements finalized with Pagoda in the presence of the Thai Minister of Agriculture and Cooperatives, one of the country’s deputy prime ministers recently paid a visit to a Thai subsidiary of Joy Wing Mau.

Thailand is now permitted to export 22 different types of fruit to China. In 2023, the country supplied the Chinese market with more than 2.36 million metric tons of fresh fruit, which accounted for 90% of Thailand’s total fruit exports. Last year’s export value also climbed by 11.9% compared with 2022 to reach $7.056 billion. Durians made up a major share of these fruit shipments, totaling $4.566 billion and marking an 18% year-on-year increase.

Image: Pixabay

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