July 9, 2012

 

Thailand's food firms urged to adopt Dutch expertise

 

 

To be able to add value to their products and expand into the European market, Thai food companies are being urged to tap into the Netherlands as a launching pad, as it is a technological hub for the agro-food industry, says a senior adviser to the Netherlands Foreign Investment Agency (NFIA).

 

Nico Overbeeke of NFIA said that the high concentration of agriculture universities and technological institutions, as well as connectivity and tax incentives, positions the Netherlands as an ideal location to expand a company's selling market and improve efficiency.

 

The advanced Dutch agro-food infrastructure helps foreign firms overcome food safety, sustainability and security issues common to all companies in the industry, he said.

 

"Whether you're in the US, Europe or Thailand, we all face the same challenges in the agro-food sector," said Overbeeke.

 

Food tastes and trends vary greatly from country to country in Europe, making it difficult for foreign firms to correctly market their products in the region. This, Overbeeke said, along with the strict product claims and health benefits, is an obstacle to overcome to be successful in Europe, but there is potential for growth in the areas of higher value-added goods.

 

Karin Rancuret, NFIA's area director of Southeast Asia, said that she often hears Thai and other Asean countries say that they want to add value to their products, as this is a way to increase profit margins.

 

"The science and technology available in the Netherlands, a country that attributes over 10% of GDP to the agro-food industry, improves profitability and efficiency of firms operating there," she said.

 

Some countries are actually seeing now as the right time to go into the European market despite the financial crisis because the costs are lower, Rancuret added.

 

Twelve of the world's 40 largest food and beverage companies, including Nestle{aac}, Unilever and PepsiCo, operate regional headquarters or research and development centres in the Netherlands, employing around 600,000 workers.

 

The NFIA was established over 30 years ago with 19 offices worldwide and has supported over 2,600 companies. The agency provides advice and consultation for both multinational corporations and small start-ups looking to expand or roll out operations in the Netherlands.

 

"We see that Thailand is now growing. It could be a big opportunity to take part in the innovation and technology that is available in the Netherlands," Overbeeke said.