Update Q4/2013

4/2013 http://thailand.ahk.de

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T H E M AG A Z I N E O F T H E G E R M A N - T H A I C H A M B E R O F C O M M E R C E

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FOOD SAFETY & FOOD SECURITY IN FOCUS Importance of Food Safety in the Food Production and Supply Chain

Featured interviews with GTCC Founding Members

Bayer Thai site visit and Ice Breaker Meeting All Chambers in the Eastern Seaboard

SAVE THE DATE

30 May 2014

DEAR READERS I am pleased to present you with the last issue of our Update magazine for 2013, which focuses on two main topics – food safety and food security and interviews with our founding member companies.

You will find a number of interesting articles on food safety and food security in which related European and ASEAN standards and regulations are compared. For example, the contribution by Schmidt on “The shift from food security to food safety” provides information on past and current problems in the food industry, while “Thai Food Law” by DFDL focuses on the related legal requirements in Thailand.

On the occasion of welcoming our 500th member – making the German-Thai Chamber of Commerce (GTCC) one of the biggest and fastest-growing bilateral chambers of commerce in Thailand – we interviewed some of our founding companies: B. Grimm, Bayer Thai, Wu Tung Pak, Lufthansa, ALUCON and Rieckermann. After a look back at the beginnings of GTCC, they shared their thoughts and visions on the various aspects of the potential of the for thcoming ASEAN Economic Community as well as Thailand’s trade and investment competitiveness in ASEAN. In addition to a brief introduction in our previous issue of Update, we further highlight our newlyestablished German-Thai Dual Excellence Education Programme (GTDEE) in this issue. Education is the most important investment a society can make. In Thailand, qualified, skilled workers are urgently needed at this time. This is where our brand-new GTDEE programme comes into play, as it will tackle the shortage of this country’s skilled labour. To further introduce this pilot programme to you, we have included a special section on GTDEE that explains the initiative in detail to ensure that no questions remain.

During this year’s last, but very active, quar ter, our members and friends also enjoyed interesting conferences such as the one on “Renewables and Energy Efficiency – Made in Germany”, a site visit to the production centre of SVI as well as press conferences and networking events. On the leisure side, we successfully organised the GTCC Oktoberfest Night, which was attended by more than 700 guests, who enjoyed the fantastic entertainment, food and good German beer. To wrap up a successful year, GTCC also hosted its annual Christmas Party 2013 and took the opportunity to present a trophy to Master Group Corporation (Asia) Ltd., in recognition of the company becoming the 500th GTCC member this year. These celebrations and other events are covered in the Chamber Activities section.

For industrial players, the last section of this issue of Update as usual provides information on the happenings in the trade fair arena such as the upcoming Spielwarenmesse 2014.

Last but not least, the GTCC team wishes all of our readers happy, reflective and restful holidays, a Merry Christmas and a Happy New Year. I would like to express appreciation for your continued support of the Chamber and hope to see you, members and friends, as numerous at our events next year.

With best regards,

Jörg Buck Executive Director Update is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or cheque to the German-Thai Chamber of Commerce, Empire Tower, 195 South Sathorn Rd., Bangkok 10120, Thailand. Tel.: (+66) 02-670-0600. Fax: (+66) 02-670-0601. E-mail address: info@gtcc.org.

Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber.

Update welcomes story and photo contributions from members and non-members alike. Articles may be reproduced with acknowledgement, except for those taken from other sources.

Circulation per issue : 2,000

Publisher/Editor-in-Chief: Jörg Buck Editor & Communications Director: Ratanaporn Bistuer Editorial Assistants: Cornelia Starp, Lisa Kolde Advertising Director: Pimtip Faktorngpan Design & Layout: Sorapol Liengboonlertchai Sub-Editor: Tony Oliver

GTCC Christmas Party 2013 & Celebration of our 500+ Membership Achievement The German-Thai Chamber of Commerce wishes to extend its sincere gratitude for the generosity of our sponsors for this significant event.

Most importantly, a special appreciation to all GTCC members as we couldn’t have come this far without your strong and engaging support for our development and initiatives over the years.

We look forward to our continued co-operation in 2014!

The GTCC Team

Snowman Sponsors:

Sugarcane Sponsors:

Premium In-kind Sponsor:

In-kind Sponsors:

Greater Mekong Subregion: Growing together CONTENTS

06

Thai food industry foresees tasty future as expansion continues

38 Featured interviews with GTCC Founding Members

48 Häfele Germany: Still growing strongly on 90th anniversary

FOOD SAFETY & FOOD SECURITY

58 German, French delicacies delight GDL workshop participants

71 International Green Week Berlin 2014

06 Thai food industry foresees tasty future as

CHAMBER ACTIVITIES 56 GTCC, GIZ hold conference on ‘Energy

10 Importance of food safety in the food

58 German, French delicacies delight GDL workshop

expansion continues

production and supply chain

15 Thailand’s Food Safety Strategy takes a crucial ‘farm-to-fork’ approach

20 The shift from food security to food safety 28 Food security and sustainability under ASEAN Economic Community (AEC)

38 FEATURED INTERVIEWS WITH GTCC FOUNDING MEMBERS BUSINESS BRIEFS 48 Häfele Germany: Still growing strongly on 90th anniversary 50 150 Years of Bayer - a major anniversary 54 First German Pavilion at Bangkok International Motor Show in 2014

Efficiency in Buildings’

participants 59 First Austrian-German Business Luncheon a major success 60 Oktoberfest Night 2013 in Bangkok enjoyed by more than 700 guests

TRADE FAIRS 68 BIOFACH

69 70 71 72

inhorgenta Spielwarenmesse International Green Week Berlin HANNOVER MESSE

CeBIT

Germ p

06 FOOD SAFETY & FOOD SECURITY

THAI FOOD INDUSTRY FORESEES TASTY FUTURE AS EXPANSION CONTINUES Contributed by Dr. Waldemar Duscha, Germany Trade & Invest

Thailand's food industry continues to grow with new ideas, products and clusters. Earlier, under the slogan, "Kitchen of the World", the country started an export initiative, which will open up more markets in the future. Moreover, the ASEAN common market still offers many opportunities, such as in the medical and halal food sectors. A new concept, "Food Valley", is being introduced with the goal of stimulating innovation in the fruit, vegetable, fish and meat processing industries. Thus, demand for packaging machinery is also on the rise, particularly from Germany.

UPDATE 4/2013

Due to the "Kitchen of the World" marketing concept, the Thai food industry was able to move up to become the second-largest food exporter in Asia, trailing China. According to the National Food Institute (NFI), Thai food exports in 2012 were similar to the figure for the previous year, amounting to approximately US$ 31 billion, representing about 13 per cent of total export revenue.

Thailand’s key markets were South-East Asia (22 per cent), followed by Japan (14.8 per cent), the European Union (11.5 per cent), the United States (10.6 per cent) and China (9.8 per cent). The 2015 launch of the ASEAN Economic Community (AEC) will lift Thai food exports to even greater heights, particularly in South-East Asia where the export ratio could increase to around 30 per cent.

The main export products from Thailand (table 1) are packaged and frozen seafood (especially tuna and shrimp), rice, sugar, cassava, canned pineapples and pineapple juice, processed chicken, meat and meat products. Thailand is also a global leader in exports of an extensive range of sauces made from chillies, curry, soya, tomatoes, fish and oysters.

FOOD SAFETY & FOOD SECURITY 07

Table 1. Thailand’s exports of food products (Units: US$ million; percentage change 2013/2012) Product

2010

2011

2012

2013*

2013/2012

Fish and seafood

4,119

5,043

5,225

2,861

-3.2

Rice

5,341

6,432

4,632

2,539

-1.6

Sugar

2,152

3,635

3,953

2,126

-29.8

Fishery products

2,898

3,087

2,823

1,195

-27.4

Cassava

814

978

1,095

757

35.7

Dog and cat food

624

712

828

508

6.1

Fruit

544

957

959

606

10.1

Alcoholic beverages

222

342

550

298

-7.7

Meat and meat products

273

301

310

177

16.4

98

132

182

126

23.0

140

177

154

106

22.5

Fats and oils Milk and milk products

Source: Customs Department of Thailand. * January-July.

The latest export figures show ups and downs, mostly caused by external factors such as fluctuations in world market prices and exchange rates, or climate and environmental influences. The cost-intensive Government rice-purchasing programme has created huge stockpiles of rice and displaced Thailand to third place among the top rice exporters, behind India and Viet Nam. On the positive side, poultry exports increased significantly after the European Union lifted an eight-year ban on raw poultry shipments due to the bird flu in mid2012. After taking into account all special factors, NFI said it expected export growth in 2013 to total 1.5 per cent.

The fisheries industry already accounts for approximately 25 per cent of all food exports. The primary target markets are Japan and the United States, each accounting for a 22 per cent share. Other major export markets include Australia, Canada and the United Kingdom. With regard to the ongoing negotiations with the European Union on a bilateral free trade agreement, an increase in the Thai fish export quota is also on the agenda. The agreement will be signed by the end of 2014.

cent). The last group in this list experienced the highest growth rate of an increase of 11 per cent compared with the same period in the previous year and was thus considerably higher than the fish sector (+4 per cent) or the fruit and vegetable processing industry (+2 per cent).

The industry leader Charoen Pokphand Foods (CPF) achieved a turnover of Baht 357 billion (approximately euro 8.5 billion; euro 1 = baht 42) in 2012. The company intends to double its turnover to around baht 700 billion within just five years. Some 55 per cent of CPF’s turnover is generated through international business compared with 36 per cent in Thailand and 9 per cent in exports. CPF’s new projects include two animal feed plants – one in Khon Kaen with an annual capacity of 576,000 metric tons (mt) and the other in Surat Thani (288,000 mt) at a total cost of approximately baht 2 billion.

In 2013, overseas market projects for readyto-eat food are planned in the United States and Australia (CP and Kitchen Joy brands) and in the United Kingdom. High expectations are also being placed on the ASEAN Economic Community (AEC) market; CPF has already invested approximately baht 3 billion in Cambodia since 1996, while several projects are planned in the new target market of Lao People’s Democratic Republic that total approximately baht 1 billion.

It is estimated that the Thai food industry comprises almost 10,000 companies, of which over 90 per cent are small and medium-sized businesses. Even though the Thai Food Processors' Association (TFPA) has only 176 member companies, they achieved a significant increase of 5 per cent in exports, valued at US$ 3.5 billion, from January to July 2013.

TFPA differentiates between six major groups of processed products: tuna (48 per cent); other fish and seafood (7 per cent); pineapples (12 per cent); other fruit and vegetables (11 per cent); corn (3 per cent); and finished products and ingredients (19 per

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08 FOOD SAFETY & FOOD SECURITY

Thai Union Frozen Products (TUF), the world's largest exporter of tuna, is also showing strong growth potential. Up to 2015, TUF plans to invest baht 6 billion annually in new production capacity and more market penetration in ASEAN. In 2012, sales increased by 8 per cent to baht 107 billion while in 2013 sales are expected to rise by 15 per cent to US$ 4 billion. For 2015, the sales target is US$ 5 billion. The main products are tuna (49 per cent) and shrimp (23 per cent).

The key markets are the United States (36 per cent) and the European Union (30 per cent). The best-known international labels are Chicken of the Sea, John West, Petit Navire, Parmentier and Mareblu und Century.

Special sectors such as halal or medical food are also making a significant contribution to growth. Today, approximately 35,000 products are halal certified. Egypt, Indonesia, Malaysia,

UPDATE 4/2013

Singapore, Saudi Arabia and the United Arab Emirates represent the key markets for Thaimade halal food products. In order to increase exports, more R&D initiatives should be promoted. Thailand is the world’s fifth-largest producer in the line behind Brazil, the United States, China and India.

On the regional level, the five main production bases for halal products are located in the southernmost Thai provinces of Narathiwat, Pattani, Satun, Songkhla and Yala. Medical food for dietary management of diseases has a strong growth potential, especially with regard to the entire Asia-Pacific region. Mead Johnson, Abbott, Novartis and Thai Otsuka Pharmaceutical are among the leading producers of medical food in Thailand.

In September 2012, the so-called “Thailand Food Valley” project was launched on the

basis of the Dutch model in an effort to enhance the development of innovative processed foods. The project is a result of collaboration between research institutes and industr y. The project is run by the Department of Industrial Promotion under the Ministry of Industry as the leading agency, together with par tner institutes such as Chiang Mai University, Kasetsart University, Chulalongkorn University, King Mongkut's Institute of Technology Lad Krabang and King Mongkut's Institute of Technology Thonburi, and Suranaree University of Technology.

In the north, the initiative focuses on clusters in Chiang Mai (fruit and vegetables) and Nakhon Ratchasima (meat), and, in the southern region, in Prachuap Khiri Khan (fishery products, pineapples and coconuts).

A total of 160 new food products have been introduced. Many of these products have

FOOD SAFETY & FOOD SECURITY 09

already been developed to respond the food trends in the forthcoming AEC market – for example, diet rice, vegetables in tablet form, rainbow noodles or durian drinks for Malaysia and Singapore. So far, members of the Food Valley Society include 70 agro-food or foodrelated businesses with 235 factories.

In quantity terms, the production of the food industry in 2012 amounted to around 35 million mt. The numerous government and industry initiatives made possible a significant upgrading of industrial procedures and technologies. In addition, recognised certificates such as GMP, GHP, HACCP and ISO improved international competitiveness.

The Board of Investment is suppor ting investors with a wide range of non-fiscal and tax incentives such as exemption from corporate income tax, and import duties on machinery and raw materials.

The five-day "THAIFEX – World of Food Asia”, which is held in the third week of May each year at IMPACT Muang Thong Thani, provides valuable support for the export industry. In 2013, the exhibition generated a trading value of more than US$ 320 million and opened up new opportunities for Thai products. A total of 93,667 enthusiasts attended the exhibition, which was slightly higher than in the previous year (+3 per cent). Most of the foreign participation came from China, Japan, Malaysia, Singapore and the United States. The date of the next exhibition is 21-25 May 2014.

Expor t dynamics and a competitive environment continue to be a driving force for investments in technological innovations matching global requirements regarding quality, safety, research and development. As a result, the Board of Investment expects imports of machinery to remain strong (table 2), particularly in the agricultural, food processing and packaging sectors.

There is a high backlog in demand, especially for drying, cooling and refining machinery as well as for processing of fruit, vegetables and grains. In addition, packaging machinery is needed for filling, closing, sealing and labelling.

Supplies of simpler machinery are dominated

by China, while more sophisticated technology comes mostly from Japan and Germany.

Table 2. Thailand’s machinery imports (Unit: US$ million) HS-Code

product

2009

2010

2011

2012

From Germany

8422.30/40

Packaging machinery

174

203

296

426

123

8437

Machines for cleaning, sorting and grading

37

52

47

41

1

8438

Other food processing machinery

81

101

165

254

23

8479.20

Machinery for oils and fats

18

22

15

6

0

310

378

523

727

147

Total Source: Ministry of Commerce.

In 2012, imports of food processing and packaging machinery rose by 34 per cent to US$ 727 million. In 2012, German products valued at US$ 147 million accounted for some 20 per cent of supplies, which was significantly higher than the share of total Thai imports (2.4 per cent). In the first seven months of 2013 imports amounted to US$ 389 million, of which Germany’s share amounted to 29 per cent.

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10 FOOD SAFETY & FOOD SECURITY

‘IMPORTANCE OF FOOD SAFETY IN THE FOOD PRODUCTION AND SUPPLY CHAIN’ Contributed by: Sareen, S., Senior Food Safety and Nutrition Officer, FAO Regional Office for the Asia and the Pacific In the World Food Summit (FAO, 1996) “the right of everyone to have access to safe and nutritious food” was reaffirmed. This declaration indicates that food safety and quality are basic human rights and fundamental throughout the world. Food safety contributes significantly to food security as unsafe and poor quality food leads to illnesses as well as food wastage. This leads to a strong need to emphasize not only on availability of food but also ensure that the same is safe. However, with globalisation and therefore expansion of food trade in terms of both volume and diversity and the accompanying factors such as changes in production and consumption patterns, changing hazards example resistant microbes, introduction of newer technologies, more sophisticated methods for detection of hazards, etc, ensuring food safety is becoming increasingly complicated.

MAJOR FOOD SAFETY ISSUES The problems of food safety are complex and systemic, often extending from the production environment to the end consumer. Food safety issues relate to aspects such as food additives, pathogens (Salmonella spp., Escherichia coli, Vibrio spp., Listeria monocytogenes, Bacillus

UPDATE 4/2013

cereus, Staphylococcus aureus, etc) heavy metals, organo-chemical pollutants, residues of veterinary drugs, pesticide residues, toxins, dioxin, residues of cleaning chemicals, simple adulterants, etc. In addition food safety issues can also be an outcome of technological developments such as use of growth promoters, irradiation, GMOs and nano technology especially if the same have not been carefully handled. Food safety impacts may range from minor incidents such as diarrhoea or major food poisoning cases and even deaths. In certain instances individual events may spread and lead to large-scale food safety emergencies. Some examples of such emergencies is the E. coli novel strain O104:H4 bacteria which caused a serious outbreak of food-borne illness in northern Germany in mid 2011 due to sprouts from imported fenugreek seeds which led to 4000 seriously ill patients with 50 deaths. Other examples are the crisis of milk contaminated with melamine in 2008 due to which there were 6 deaths, 300, 000 illnesses and 115 types of contaminated food products. The dioxin crisis as well as the radionuclide contamination of food items from Japan, are also well-known.

MEETING FOOD SAFETY REQUIREMENTS – THE FOOD CHAIN APPROACH Food safety hazards may arise at any step of the food chain, from production to consumption. For example, chemicals and drug residues may be introduced in the primary production stage; colours and additives may be added during the storage or processing; or microbial contamination may arise due to poor hygienic conditions during different stages of production and handling. This brings about the importance of the food chain

FOOD SAFETY & FOOD SECURITY 11

approach to ensure the safety of food. Food safety hazards therefore, need to be prevented from entering the chain or reduced to acceptable levels at each and every stage.

The commitment and responsibility of all players in the food chain, involving producers, traders, processors, distributors, government as well as consumers to ensuring food safety as well as quality in the part of the food chain under their purview or control is therefore important for food safety. In this approach, not only does responsibility lie with various players but food control relies on implementation of a preventative approach based on risk which focuses on building quality and safety throughout the food chain. The role of endproduct inspection and testing has been reduced to a verification activity only. In the earlier reactive approach, the focus was on detecting the problem and disposing the food or reworking on the same while in the preventative approach the focus is on ensuring that hazards are prevented to enter into the food chain through implementation of good practices (such as Good Agricultural Practices, Good Manufacturing Practices, Good Animal Husbandry Practices, Good Aquaculture Practices etc.), HACCP systems and Food Safety Management Systems such as ISO 22,000. Likewise, the role of the government has also shifted from end product sampling and testing to checking the controls being maintained by the range of stakeholders and assessing whether these are appropriate to ensure food safety.

The role of each major player in the food chain is highlighted below:

second role is that of a regulator or guarantor of a system whereby it focuses on food inspection or surveillance activities. It does this through defining its policy, promulgation legislation including standards and ensuring implementation of the legislation. Food controls in countries need to address health and safety for domestic populations as well as be used for the purpose of exports to ensure that safe food enters regional and international trade. To be effective, the controls need to be applied both at the national and provincial levels.

FARMERS Following good practices (GAP, GAHP, GAqP, GVP) by farmers during on-farm production and post-production processes that result in safe agricultural products is of immense importance for assuring a safe food supply.

Good agricultural practices or GAP as it is commonly known are practices that need to be applied on farms to ensure food safety and quality during various stages, from production to the farm gate. GAP standards and certification schemes may be implemented as governmental or as fully private schemes.

Further, these may be voluntary schemes or mandatory ones.

Some of the important practices to be addressed at the farm level include personal hygienic practices, proper use of chemicals including pesticide and fertilizers use, use of properly treated manure, quality of water, correct usage of veterinary drugs, animal and pest controls among others. It is also important for the primary producers to maintain appropriate documents and records for the practices followed.

FOOD RETAIL The food retail sector which is a fast-growing market, covers organised modern retail as well as traditional groceries, food service industries like restaurants and cafeterias, and street foods in its various forms. Food safety is very important in the retail sector as food retail is generally the final end of the food chain before the food reaches the final consumer. Although different types of retail have their own food safety issues as well as the risk management options, aspects such as good practices including hygiene aspects are generally important in any food

GOVERNMENT It is the responsibility of the national Government to protect the health of the population as well as to ensure a sufficient and safe food supply. The SPS Agreement also recognises the right of of Governments to apply sanitary and phytosanitary measures to protect the health and safety of their populations. For effecting its responsibility, the government has two major roles for ensuring that food products are safe. First, that of an enabler whereby it creates an enabling environment in respect of scientific, technical, financial as well as infrastructure aspects for the production, processing, transportation, storage and consumption of safe food. The

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12 FOOD SAFETY & FOOD SECURITY

sector related activities as also in the food retail. Additionally, modern organised food retail has to deal with a large range of activities covering the basic food procurements and sourcing, processing (simple as well as complex), the storage or warehousing, imports and finally the handling of the front end where the customer interaction is high.

In this sector, in addition to basic good hygiene practices additional areas to focus on include maintenance of cold chain, training of staff, developing a traceability and recall system, stock management to ensure that no expired or unsafe products are on the shelves, correct labeling, pest management, supplier controls etc.

which result in foodborne illnesses. It is the responsibility of consumers to seek information on safe handling, storage and cooking practices.

CHALLENGES TO MEETING FOOD SAFETY REQUIREMENTS Meeting food safety requirements is a challenging task. Although Governments in the region have been working towards addressing food safety concerns, they face numerous challenges.

Some challenges to address food safety, both at the international and national levels, which need to be specifically addressed through interventions by Governments as well as through support of international partners, are highlighted.

OTHER HANDLERS Handlers such as transpor ters, storage companies, and others also have an important role in maintaining food safety and would need to address aspects like temperature controls, especially for frozen products, which could lead to food safety issues; cross contamination issues to avoid hazards like chemicals crossing over to a food product due to poor handling practices.

THE CONSUMER

TRADE-OFFS BETWEEN FOOD SAFETY AND FOOD SECURITY

Consumers have a very important role in ensuring food safety in the food supply chain, although they are often unaware of the same.

Their role starts with demanding a safe product. Unless a consumer demands a safe product and asserts his rights, he may not get the same. Consumers need to follow directions for storage and use. The consumer also needs to follow hygienic practices during handling, storage and preparation of the product. Consumers are often unaware of, or fail to apply safe food handling practices

Implementing food safety measures in a world of increasing food insecurity is a major challenge as on the one hand there is food insecurity while on the other there are food losses and wastes due to issues such as products past shelf life, residues of pesticides or veterinary drugs, contaminants higher than permitted limits resulting in the products being declared unsafe for consumption and even destroyed, which would mean increased food insecurity. Further, the benefits of spending on implementing food safety requirements or certification costs (for ISO 22,000, GAP schemes etc.) is not always easy to justify due to benefits that are often non-tangible.

Scientific progress has led to development of highly sensitive detection methods for pathogens/ contaminants which has resulted in more stringent limits being imposed by governments for such parameters. The impact of this is higher costs in meeting the stringent requirements without clear justification on the additional risk to be addressed through the more stringent requirements as well as due to disposal of food not meeting such requirements.

GLOBALIZATION & SPREAD OF CONTAMINANTS – STAYING AHEAD OF HAZARDS With globalisation and increasing trade of foods, there is a higher potential for spread of contaminants. Hazards are also continually changing or new hazards are being detected as in the case of melamine, dioxins, additional pesticides, newer pathogens etc., which reflects the need to remain alert and constantly monitor such hazards as well as keep updated on the latest developments in the field of food safety and address the resulting challenges. In addition, food safety issues may also arise due to technological advancements such as genetic modifications, irradiation technologies, nano technologies etc. which also need to be continuously investigated.

UPDATE 4/2013

FOOD SAFETY & FOOD SECURITY 13

LOW IMPORTANCE BY GOVERNMENTS (ABSENCE OF DATA, INCIDENTS UNREPORTED, FS MEASUREMENT) Communicating or illustrating the value of food safety has always been very difficult as, food safety is not very tangible and again the direct link between food and foodborne illnesses are not always demonstrable.

Data on food safety monitoring or diseases is not well captured and analysed. Further, not many studies are available on the cost of implementing food safety and quality vis-Ă -vis the financial benefits. Therefore, one of the most important challenge is the need for understanding the role of food safety at the highest level, namely the policy makers, so that they can give it the required importance in the country as well as allocate resources in terms of manpower, equipment, time and funds.

LEGISLATION/NATIONAL FOOD CONTROL SYSTEM AND STANDARDS ISSUES In many countries the legislation is outdated and covers basic quality requirements rather than food safety ones. The focus is more on inspection and testing rather than the preventative approach. Another important issue is diverse requirements/norms in the regulation and those published by the National Standards Bodies causing confusion.

In addition is the aspect of differing requirements of different countries/markets as well as private standards. Such issues are being discussed even at the global level, but no clear solutions for the same are evident.

Countries are not sure whether to adopt international Codex standards or the more stringent requirements of certain countries as they feel that not only will these give a higher level of protection to their own populations but also have higher acceptability for trade especially exports.

CROSS-CUTTING AREA MULTIAGENCY, COORDINATION An oth e r im po r tant ch a l l e n g e for implementation of food safety is acceptance of its multidisciplinary nature and the need to have role clarity and coordination between different organisations. In many countries of the region, there may be as many as 10-15

ministries or departments involved in the various aspects of food safety and control systems that span the entire food chain, but which are often implemented in a piecemeal manner with little or no co-ordination. This, leads to gaps in certain aspects, and duplication and overlaps in others.

So in case of a routine food safety incident or emergency, there is no clear accountability or clarity on who is responsible for addressing the same.

LINKING BETWEEN PRIMARY PRODUCTION AND PROCESSING A major challenge is the need for each stakeholder to understand their role in ensuring the quality and safety of the end product, and to build a sound linkage between the processor and primary production, so that the processor can build upon the controls maintained during primary production and meet the traceability requirements in case of any food safety issues arising in the product at a future period. Low awareness among various stakeholders including farmers, input producers, food processors and Government authorities of good practices and the impact of these on reducing contaminants and improving food safety is also a major challenge.

OTHER ISSUES Other impor tant challenges faced by many countries in the region include: strengthening regulatory conformity assessment infrastructure in relation to testing and data collection to support a risk-based approach; effective participation in international standards by formalising a clear country stand through involvement and par ticipation of different and relevant stakeholders and appropriately communicating the same in international meetings; availability of sufficient and qualified manpower for activities such as inspection and testing that is fully oriented towards a risk-based preventative approach; and adequate infrastructure in terms of safe transportation, maintenance of cold chain during storage, transportation as well as at the level.

FOOD SAFETY PRIORITIES IN THE REGION Based on the above issues that have been identified in Workshops/ Consultations and other fora, focus areas have been identified for the region which need to be taken up on priority.

These include: Strengthening the food safety co-ordination mechanism within different Ministries and government departments in countries Identifying and working on food safety indicators for the region

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14 FOOD SAFETY & FOOD SECURITY

In view of the current low capacity for risk analysis, organising detailed practical training courses to strengthen understanding of various risk analysis detailed components as well as to support building these within national systems, e.g., risk profiling, exposure assessment, risk communication Support countries for harmonisation of standards with a clear role of regulatory and voluntary standards Programmes to strengthen food import control systems in countries as this aspect has a major implication for health of populations Support for countries in the application of food recall and traceability in National Food Control Systems Support in strengthening safety in food retail (street foods and organised retail) through establishing regional guidance documents on safety in food retail as well as a regional network for safety in food retail Support countries in strengthening GAP in the horticulture sector in terms of both developing schemes and certification systems Strengthening regional collaboration for use of both regional expertise and knowledge through information exchange, use of each others’ risk analysis facilities as well as laboratory facilities FAO ACTIVITIES FAO plays an important role in supporting the establishment and implementation of international frameworks related to food safety and trade both at the international as well as regional level. This includes its involvement in international standards-setting mechanisms such as the Codex Alimentarius Commission (Codex) for the purpose of human health as development of tools/ guidance documents. The standards set by Codex for food safety have become specifically important as these have been referenced in the SPS Agreement as baseline for meeting human health requirements for international trade. Codex documents that include commodity standards are established through various commodity and subject committees. Documents developed by Codex are available on the Codex website at www.codexalimentarius.net.

FAO also responds to the needs of individual countries and works with them in addressing food safety concerns and supports their capacity development by providing technical assistance through implementation of field projects or other capacity development activities such as training and workshops, and through publication of tools and guidance documents. Details of some FAO publications in terms of tools/guidance documents on food safety can be seen on the FAO food safety website (http://www.fao.org/food/food-safety-quality/ home-page/en/).

FAO is currently supporting around 15-20 projects and programmes in various countries in the Asia-Pacific region on food safety covering capacity strengthening in aspects of food safety policies, legislation and governance (including co-ordination mechanisms); SPS issues, standardsand norms and Codex related activities; enforcement and surveillance (inspection, testing, cer tification, food-borne disease surveillance)Â aspects; food safety in various agro-food supply chains in relation to preventative risk-based approach from production to consumption with specific focus on their linkages to primary production; food safetyemergency management and recall systems; cer tifications and

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accreditation; and training, awareness and education for the whole range of stakeholders.

It may be added that food safety has been recognised as a priority area for FAO in the Asia Pacific region. In the latest, namely the thirty-first FAO Regional Conference for Asia and the Pacific held in March 2012, FAO was requested to assist member countries to enhance capacity for participation in the design of animal health and food-safety standards, harmonise food safety and quality standards in value chain development, and strengthen legal and institutional frameworks that govern food safety and quality in value chain development.

CONCLUSION In conclusion it may be emphasized that building food safety in the food production and supply chain is extremely important for maintaining safe food supply and thereby both the health and wellbeing of populations as also gaining market access. With the existing as well as the newer and emerging food safety hazards that need to be addressed at the international level and by countries, ensuring food safety is becoming increasingly complicated. This is not a simple task and there are numerous challenges to be faced both at the international and the national levels which need to be collectively strategised and addressed. To address these challenges, Governments need to work together, not only with stakeholders within their countries but also with international and regional partners so that resources can be pooled and thus better utilised for greater impact.

FOOD SAFETY & FOOD SECURITY 15

Dr. Doris Gerlach, a German expert from Hessen State Laboratory, Border Inspection Post, and Thai participants during on-site training on sampling methods at the packing house, as part of the workshop on “GMP/HACCP Technical Approach and Requirements for Inspection of Vegetable Processing and Packing Houses” in March 2013. The workshop was conducted under the food safety co-operation project between Thailand and Germany.

THAILAND’S FOOD SAFETY STRATEGY TAKES A CRUCIAL ‘FARM-TO-FORK’ APPROACH Contributed by: National Bureau of Agricultural Commodity and Food Standards, Thailand For more than a century, food safety issues have been thematised worldwide. The impacts of extensive trade liberalisation on food safety have expanded beyond national borders and health aspects. Undoubtedly, increasing incidents of cross-border food-borne outbreaks have raised global public concern over their serious implications for economies, politics and public health, both at the domestic and the international level.

As one of the world’s major food exporters (ranking eighth in fresh food exports in 2011 with an accounted value of US$ 26 billion1), Thailand has long recognised the importance of food safety issues and its responsibilities in ensuring that food produced for all consumers are safe.

Food safety issues have become one of Thailand’s national discourses following the Royal Thai Government’s declaration that 2004 was to be “the food safety year” and its subsequently launch of a “Roadmap of Food Safety,” a strategic framework based on the “from farm-to-fork” approach. This comprehensive framework specifies the roles

and responsibilities of relevant actors including private sectors, at each stage of the entire food production chain – from production to consumption.The framework also highlights an essential need for integrated food safety management and an effective traceability system. Since then, guidelines and strategies have been developed by related agencies to accommodate the Government’s goal, aiming to reach the status of the “Kitchen of the World”.

frequently utilised as an alternative instrument in trade negotiations.

The Ministry of Agriculture and Co-operatives (MOAC), one of major driving forces behind food safety management in Thailand, initiated its first phase of the Food Safety Strategy during 2005-2008, placing emphasis on improving capacities and quality in production, control and inspection of agricultural and food products.

Thus, MOAC formulated its second phase, the Agricultural Commodity and Food Standards Strategy (2010-2013), shifting its focus to upgrading standards systems, not only with the objective of improving “standard and safety for all” but also to add value to products through food safety and standards.

For these purposes, the strategy sets out target-oriented approaches in the following five areas.

However, in a changing international trade environment where the number of bilateral and regional free trade agreements is increasing rapidly, non-tariff measures such as sanitary and phytosanitary measures (SPS) are playing more important roles as they are

Consumer demands for food safety and quality are on the rise as a result of changing consumption patterns. In addition, faced with intensified competition from major low-cost producers in particular, Thailand has foreseen the need to modify its strategy to meet these new challenges, and to enhance its position and competitiveness in the global market.

Strategy I: Enhancing the quality of agricultural products This strategy aims to standardise integrated

1 International Trade Centre (see http://legacy.intracen.org/appli1/TradeCom/TPIC.aspx?RP=764&YR=2011. Accessed 11 November 2013).

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Food education project for primary school students promoting sustainable and safe production of agricultural products.

operations of agricultural production as well as establish a coordinated model of network – linking farmers, manufacturers and markets with each other – to ensure a supply of safe and good quality raw materials for the food industry. The strategy also recognises the need to develop and restructure a sound food production model, for example, by enhancing competitiveness and capacities of farmers and small and medium-sized manufacturers through technical assistance and government support.

Strategy II: Promoting application of standards in agricultural production This strategy highlights the priority being given to encouraging individual farmers to participate in a group certification programme, and to motivating small and medium-sized manufacturers to join standard schemes. It also sets forth measures to increase numbers of GAP certified farms, GMP/HACCP certified facilities and private certification bodies for GAP, in order to improve the effectiveness of the standards system.

Strategy III: Conducting research and developing good quality products and markets This strategy illustrates the importance of research and development (R&D) programmes to improve production processes in order to reach international standards and increase product value. It also recommends the establishment of an R&D network by

seeking technical collaboration from domestic and international organizations in knowledge transfer and best practices sharing.

Strategy IV: Establishing a food education system Public consciousness about food safety is one important driving element in creating a vigorous food safety society; hence, this strategy emphasises food education, particularly at the school level. Furthermore, it focuses primarily on creating awareness among related stakeholders through the dissemination of knowledge about standards and food safety as well as on the improvement of communication channels.

Strategy V: Enhancing consumer trust and confidence in Thai agricultural commodity and food standards This strategy aims at creating an effective control and monitoring mechanism, including a certification system, and improving capacities of laboratories to ensure the safety and quality of Thai products. It also suggests implementation of a sound traceability system and an interactive early-warning system, which will integrate food safety alert notifications and relevant data from related agencies within and outside MOAC.

CURRENT ACHIEVEMENTS From 2010 to 2013, notable changes and

positive progress have been made since the strategy was adopted. Several pilot projects have been carried out, such as a project to establish integrated operations for rice production, a project to promote Group Certification for specific products (e.g., herbs, mushrooms, orchids, rice, corn, mangos, bananas and marine shrimp) and a project using the GS1 standard and technology to set up traceability system for mango and chicken production.

The control and monitoring mechanism for food production has been further improved, thus contributing to growth and strong performance of production in some sectors, such as livestock production. According to a recent report by the Office of Agricultural Economics, production of major livestock products such as broilers, pork, egg and raw milk has expanded 2.2 per cent in the third quarter of 2013 due to the improvement and standardization of production systems and control management, including effective disease monitoring.2 Currently, 225 voluntary standards for products, production systems and general requirements have been established and implemented. In addition, the establishment of six mandatory standards are underway, such as a standard setting up MRL for Aflatoxin in peanut kernels, GMP for sulphur dioxide fumigation of fresh longans and GHP for the transportation of carcasses, thus paving the way to regulating the enforcement

2 Office of Agricultural Economics (see www.oae.go.th/download/bapp/OutlookQ3_2556.pdf. Accessed 12 November 2013).

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Seminar on integrated border control management in September 2013.

of standards nationwide for consumer health protection.

As for food education, several workshops and training courses have been conducted for all stakeholders – from farmers, exporters, government officers to consumers – to foster food safety awareness, render technical advice and transfer knowledge. Best practices and technical assistance have been delivered by foreign sources through an international cooperation framework.

In March 2013, for example, Germany dispatched three food safety experts to participate in a five-day intensive seminar and workshop in Thailand on “GMP/HACCP Technical Approach and Requirements for Inspection of Vegetable Processing and Packing Houses”. During the seminar and workshop, the German experts and Thai inspectors worked closely on GMP and HACCP inspection techniques, sampling methods and European Union food safety standards through experience sharing, onsite practices and detailed discussions.

FUTURE STEPS Challenges still lie ahead for Thailand as it moves towards the ASEAN Economic Community in 2015, which is expected to contr ibute to increasing economic interdependence among the member Sates.

Undoubtedly, potential spill-over effects of this nested regional trade on domestic health

situations are inevitable. As a result, Thailand has repositioned its policy towards a more regionalised and integrated food safety system.

However, much remains to be done. The ASEAN Rapid Alert System for Food and Feed, established in 2005 by MOAC with support from the European Union, needs to be further improved in order to create an efficient regional network and centralised database for food safety.

Also, in response to this new trading context, MOAC has initiated an ambitious flagship project to improve capacities and capabilities of border controls for agricultural products, par ticularly through integrated border management and operational cooperation.

The objectives are to prevent the introduction and spread of diseases and pests, and to facilitate trade with better risk management.

Through its expanding network of bilateral and multilateral free trade agreements, Thailand is increasingly becoming bound to international norms and standards related to SPS measures and food safety, the scope of which have been extended to cover other aspects - i.e., sustainable production and green agriculture - reflecting growing consumer demands and interests in international markets.

develop a more comprehensive food safety strategy in order to expand its market opportunities and global market access. In pursuit of this goal, MOAC has implemented another flagship project that is promoting the establishment of “Green Agriculture City” in five provinces, including Chiang Mai, Ratchaburi and Phattalung, to encourage sustainable production by applying, for example, biomass innovation and zero waste agriculture.

Notwithstanding the significant progress achieved in recent years, Thailand still has a long way to go. More than 30 related laws will require revision and amendments.

Furthermore, the structural reform of relevant agencies is still necessary in order to achieve a more integrated response to food safety crises, unprecedented challenges and changing demands.

Parallel to these institutional and structural changes, transforming the mindset and attitude of all relevant stakeholders through the socialisation process is crucial to the successful creation of food safety awareness in Thailand.

Thus, this inevitably requires Thailand to keep up with the new trading environment and

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‘SMARTER RULES FOR SAFER FOOD’: EUROPEAN UNION STRENGTHENS HEALTH AND SAFETY STANDARDS Contributed by: Patrick Deboyser, Minister-Counsellor (Health and Food Safety), Delegation of the European Union to Thailand The European Union’s "from farm-to-fork" policy covers legislation to protect health by ensuring that the food it produces and imports is safe to eat. This body of legislation is a complex, integrated system of rules that takes care of all the links in the food chain, starting with the protection of plants from pests, the protection of animals and humans from animal diseases (and from such diseases that are transmissible to humans) to the protection of human health from all the hazards that might arise along the agri-food chain. It also includes all those rules that allow the European Union Single Market to function smoothly in this area and provides rules for the protection of consumers.

The European Commission recently implemented a package of measures to strengthen the enforcement of health and safety standards for the whole agrifood chain. The measures provide a modernised and simplified, more riskedbased approach to the protection of health as well as more efficient control tools to ensure the effective application of the rules guiding the operation of the food chain.

The package responds to the call for better simplification of legislation and smarter regulation, thus reducing the administrative burden for operators and simplifying the regulatory environment. Special consideration has been given to the impact of this legislation on small and medium-sized enterprises and microenterprises, which are exempted from the most costly and burdensome elements in the legislation.

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The current body of European Union legislation covering the food chain consists of almost 70 pieces of legislation. The “Smarter rules for safer food” package of reform will cut this down to five pieces of legislation and will also reduce the red-tape in processes and procedures for farmers, breeders and food business operators (producers, processors and distributors) to make it easier for them to carry out their profession.

Businesses will benefit from simpler, scienceand risk-based rules in terms of a reduced administrative burden, more efficient processes, and measures to finance and strengthen the control and eradication of animal diseases and plant pests. Consumers will benefit from safer products as well as a more effective and more transparent system of controls along the chain.

The five elements of the new package are: The animal health regulation, which is aimed at protecting and raising the health status and condition of animals in the European Union, particularly foodproducing animals, while ensuring intraEuropean Union trade and imports and exports of animals and animal products are in accordance with the appropriate health standards and international obligations;

and ornamental species and vines, which ensures the quality and productivity of this material, given that it is the first link both in the food chain and in forestry; A legislative framework for the organisation of official controls concerning food and feed safety, animal health and welfare, plant health and plant reproductive material, established to ensure that the sector-specific rules are enforced by the member States across the European Union in a harmonised manner;

The plant health regime, the objective of which is to protect European Union agriculture and forestry by preventing the entry and spread of foreign plant pests;

The fifth proposal modernises the financial framework for the four preceding policy areas in order to support their goals. This proposal is linked to the multi-annual financial framework and proposes replacing the current multiple legal bases for co-financing with a simple, clear and modern legal framework that optimises the implementation and the financial management of European Union funding in this field.

The marketing of planting material such as seeds of agricultural, vegetable, forest, fruit

Full details of the Commission’s proposals can be found on the website of the European Commission at http://ec.europa.eu/dgs/health_consumer/pressroom/animal-plant-health_en.htm.

“The agri-food industry is the second-largest economic sector in the European Union, employing more than 48 million people, and is worth some € 750 billion a year. Europe has the highest food safety standards in the world. However, the recent horsemeat scandal has shown that there is room for improvement, even if no health risk emerged. This package of reforms comes at an opportune moment as it shows that the system can respond to challenges; it also takes on board some of the lessons learnt. In a nutshell, the package aims to provide smarter rules for safer food".

Tonio Borg, European Union Health and Consumer Commissioner

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THE SHIFT FROM FOOD SECURITY TO FOOD SAFETY Contributed by: Michael Schmidt, Sales and Marketing Manager, Schmidt Co., Ltd.* Food is a crucial part of our everyday lives.

Our primary force of sustenance relies on our daily intake of energy in edible form.

Whether we rely on local or imported food products, experts within the food industry have distinguished food safety and food security as two separate but intertwined aspects in terms of quality and availability.

Food safety comprises the utilisation of various resources and strategies to ensure that all types of food are properly stored, prepared and preserved, thus rendering them safe for consumption, whereas food security refers to the availability of food and consumers’ access to it. A household is considered food-secure when its occupants do not live in hunger or fear of starvation. It is a measure of resilience to future disruptions or unavailability of critical food supply, due to various risk factors including drought, shipping disr uptions, fuel shor tages, economic instability and wars.

imports and foreign assistance. A low to diminished food reserve status could have dire consequences such as in that which occurred in Ireland in the 1840s when potatoes were afflicted by the outbreak of the Potato Blight; the result was a terrible famine as the Irish had come to solely rely on potatoes as their staple food.

SERIOUS MALNUTRITION AND STARVATION Nowadays, food security is primarily an issue found predominantly in parts of Africa and other drought/arid regions where cultivating fresh produce and livestock is rarely possible as water is scarce and climate conditions are too extreme for healthy vegetation. Food shortages in

Throughout time it has been a nation’s priority to have large food reserves. Problems such as food contamination caused by the lack of hygiene or poor crops resulting from a bad harvest season pose serious threats to a country, as it will become dependent on *Schmidt Co., Ltd. is a Bangkok-based importer and distributor of food/ingredient products.

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those regions have caused serious malnutrition and starvation despite international assistance through foreign aid and food donations, and agricultural exper tise in building wells, irrigation systems and other self-sustaining methods.

However, even countries famed for both quality and quantity of food production, such as Thailand, are not free from food security concerns. A recent example was the devastating floods of 2011 that left a part of Bangkok and a greater part of the country’s food-producing provinces inundated, practically destroying the national crop reserves. The resulting chaos among m the public, rushing to stock up food, was just one outcome. In a severe case of natural disaster, where a tsunami, earthquake or even another flood could seriously damage the integrity of Thailand’s food supply, this scenario would repeat itself on an even larger scale.

During that crisis of 2011, temporary imports of bottled water from other Asian countries were necessary in order to supply those who were stuck on their roofs and balconies, with no way to find food or drinking water. The effects of the recent Typhoon Yolanda, which ravaged parts of the central Philippines, left villagers homeless and virtually cut off from other provinces due to flooded roads and damaged bridges. That type of situation will lead to a widespread shortage of food and clean drinking water among the affected population, whose desperation will grow rapidly if a secure emergency food supply cannot be established effectively.

Environmental Health

Food Processing, Distribution, and Marketing

Social Equity & Human Health

Asian nations such as Thailand are normally not afflicted by shortages of food, as the abundance of food stalls, shopping malls, hotels and restaurants clearly shows. The tropical climate here also allows high yields in harvests all year-round, enabling Thailand to export fruit, vegetables and grains. The question in daily life here is how to not overeat, rather than finding sufficient nutrients to maintain proper health.

Aside from the availability of a vast range of snacks and dishes, food safety and hygienic standards are sometimes a source of worry among the public. The popular food carts and streetside booths are convenient and, most of the time, provide delicious food. Having such many types of snacks, soups and other dishes so readily available, has also been somewhat of a national signature dating back several decades.

TRAFFIC POLLUTION, ACID RAIN One factor that has not been considered, however, is the increase in traffic pollution and acid rain in the past 20 years, which can pose a steadily growing threat to health. It is not surprising, therefore, that a number of travel guide books now tend to warn visitors to stay away from street food to avoid becoming sick, even though fresh-food markets have greatly improved in terms of hygienic care and have raised their standards to ensure a clean and safe marketplace.

Food safety as a scientific discipline involves the handling, preparation and storage of food in ways that prevent food-borne illnesses. This includes a number of routines Food that should be followed to avoid potentially severe health hazards, starting Production from production industries to markets and then consumers. In considering industry-to-market practices, the regulation of food labelling, food hygiene, additives and pesticide residues are mandated by law, together with policies on biotechnology and food guidelines for the management of governmental import and export inspections and certification procedures for foods. As for market-to-consumer practices, the usual expectation is that food ought to be safe in the market and the concern Economic Food Consumption is for safe delivery and preparation of the food for or by consumers.

Vitality Imported goods, once certified by the authorities responsible for food and health matters in the country of origin, will be subject to certification and sample

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analysis by the Food and Drug Administration of Thailand. Once a licence has been granted and the product is considered safe, the product will be allowed to enter the consumer market without requiring further inspections. Practically, further potential risks could incur, such as improper storage while the goods are awaiting customs inspections, or where goods could (mistakenly) be temporarily stored in hot warehouses instead of refrigerated containers.

the country, which is why regular controls are needed to avoid contamination and subsequent wastage of foods. Certification by manufacturers does not mean much if the products have been handled and stored poorly in the trading chain. In addition, a risk will arise if consumers fail to transport a frozen product properly, maybe simply because their car is stuck in traffic for some time when heading home from the supermarket.

A disruption in the delivery chain or a brokendown refrigerated truck could also pose a risk to the cleanliness and freshness of food products, so direct deliveries from distributor to customer are necessary. Subsequently, a customer must also quickly store these items in refrigerated facilities. Some supermarkets may o r m ay n o t t u r n o f f t h e i r air-conditioners after closing time in order to save on electricity costs, leaving sensitive food products exposed to higher temperatures for up to eight hours, which can increase spoilage.

In terms of sustainability, innovative markets are emerging, which focus on agricultural sciences that can provide significantly fast food production, to cover a majority of a population’s needs while still being able to guarantee both secured production and safe, hygienic process.

Power cuts and the lack of back-up generators also become problematic with regard to the quality of perishable food items. Improper storage conditions are commonly found in

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MODERN HYDROPONICS The relatively new concept of modern hydroponics has already had a positive impact on the fresh-food sector. This can be seen on a small scale in any larger supermarket, mostly in the form of salads and herbs. Also, growing and supplying only local markets helps to reduce CO2 emissions by cutting the need for transportation to other areas

of the country or to overseas destinations.

Hence, more research and development into vertical farming has been proposed in several countries of Europe and the United States to improve secure food supplies for individual cities.

Agricultural research into effective bioremediation (of arid, mineral-depleted soil) would be of great benefit to Thailand’s image, while also helping to make the country resilient and able to survive natural disasters.

As several consulting firms in Thailand already offer expertise in this area, it is time to explore ways of modernising food production methods used in this country and to build on existing strengths by looking at additional clean and sustainable practices. This would have the added benefit of enabling Thailand to remain competitive with agriculturally advanced players such as China and emerging Viet Nam. This would also provide a great opportunity for German companies with extensive knowhow in this field to co-operate with Thailand in ensuring safe and secure national food production.

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STERILE TO START WITH, STERILE RIGHT THE WAY THROUGH, WITH THE CONTIFORM ASEPTBLOC FROM KRONES Contributed by: KRONES (Thailand) Co., Ltd.

The Contiform AseptBloc unveiled at the drinktec already decontaminates the preforms, not the finished bottles. It consists of a sterile blow-moulder combined with filler and closer, with integrated process technology for aseptic applications. This approach is quite unusual, but extremely effective.

A STERILE CHAIN, FROM THE PREFORM TO THE FINISHED PRODUCT

Immediately after heat-up, the preforms are sent to the sterile zone, so as to treat them with gaseous hydrogen peroxide (H2O2).

Preforms feature a more even shape and surface than bottles, while also being much, much smaller. This means the system substantially reduces both the amount of work and the costs involved. Less time, less energy and less sterilisation medium are needed for preform treatment.

The system cuts water consumption while simultaneously upgrading microbiological safety.

Preform decontamination does not cause any shrinkage of the kind encountered during bottle decontamination. This is whythe Contiform AseptBloc is also able to cope effortlessly with extremely lightweight PET containers.

In the Contiform AseptBloc, sensitive products like juice, ice tea, tea, energy drinks, beverages with a particle content, UHT milk or milk-based mixed drinks are optimally treated from beginning to end. Directly downstream of the oven, the preforms enter a hermetically sealed sterile zone, which they do not leave until they have been transformed into fully blowmoulded, aseptically filled and capped bottles.

The Contiform AseptBloc achieves outputs of up to 48,000 containers an hour with a simple basic structure: it does not need any additional devices, such as a hygiene centre or a sterilewater UHT unit, and utilises just one control system for all aseptic processes, which makes it easy to service and impervious to malfunctions.

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FOOD SAFETY STARTS WITH TESTING Contributed by: Intertek Testing Services (Thailand) Ltd. When is the last time you really gave a th ou gh t to w h e r e you r fo od a n d i t s ingredients originated, and whether they were processed safely? It is doubtful that many people think that far ahead when delicious temptations are offered to them.

Food safety is much more than just being concerned whether what you consume is edible and safe. It can be interpreted from a comme r c ial view p oi n t a s a g oo d understanding of the analytical process that follows industrial and local requirements, while ensuring good business ethics and practices throughout the entire “farm-to-fork” journey.

It is impor tant that producer s share responsibility for food safely throughout the global supply chain. The recent horsemeat scare and the discovery of pork in Halal products are noteworthy examples of supply chain breakdown in the industry.

This is where food testing can prove invaluable to detect fraudulent ingredient contents as well as protect against lapses in quality control

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through analytical tests such as ELISA and Polymerase Chain Reaction (PCR). ELISA is a simple test used to check for the presence of protein using a test kit with a coloured chart reading. The test is able to detect contamination amounts above 1 or 2 per cent. The PCR test is more sensitive and able to provide accurate results close to 0.1 per cent. However, the latter test is more costly.

In addition, both tests can only be used to identify a specific species, e.g., horse or pork meat.

In the case of pork content found in a Halal product, it could be a result of accidental contamination at the factor y premises whereby the factory also processes porkrelated products. However, even that reason is unacceptable in the case of Halal-certified products as they must not contain pork due to religious dietary practice.

Another benefit of food testing is to provide a better understanding of food-borne illness.

The degree of contamination can vary from each individual product, depending on the amount of bacteria and toxin that exist in an

open environment. Even cooked food that is left in the open can also become unsafe for consumption.

According to the United States Centers for Disease Control and Prevention, diseases can be caused by bacteria, viruses, parasites and fungi that are carried by animals and insects, and which can end up in an animal’s meat or milk, leading to food safety concerns such as E. Coli and Salmonella.

Research has found that Salmonella can survive for more than a year in soil while E. coli can survive at least three months in soil. There is always a risk of these being transported off or onto a farm when new animals are brought into or shipped from a farm.

Based on Thai and international studies, Salmonella is usually found in meat and eggs while Campylobacter are frequently found in poultry, canned food, seafood, raw milk and water.

Apar t from contamination during farming and production, some bacteria such as

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Staphylococcus aurous can remain on the skin, nose, hands and bodies of employees.

Improper personal hygiene by food handlers, u n cl ean kitc h en e q u i p m e n t , cros s contamination and contamination from other sources in restaurants can increase the risk of food poisoning.

Recommendations for minimising the risk of food poisoning:

Just because you cannot see something with the naked eye does not mean it is not there.

This is why food testing is crucial. Always consider food safety before consuming your next meal.

Contact details: Intertek Testing Services (Thailand) Ltd., 888 MEC Tower Building, 9th and 10th Floors, Bangna-Trad Road, Bangna, Bangkok 10260, Thailand Tel: +66 (0)2-744-5158 to 62 Fax: +66 (0)2- 744-5163 to 4 E-mail: Foodservice.TH@intertek.com

Wash your hands with warm, soapy water for at least 20 seconds before and after handling raw meat and poultr y. Wash cutting boards, dishes and utensils with hot, soapy water. Immediately clean spills. Keep raw meat, fish and poultry away from other food that will not be cooked. Use separate cutting boards for raw meat, poultry and egg products, and cooked food; Do not eat previously cooked food unless reheated until steaming hot; Foods that do not need refrigeration, such as canned tuna and canned salmon, are safe to eat. Refrigerate after opening; Do not drink raw (unpasteurized) milk and do not eat food that contains unpasteurized milk; Use precooked or ready-to-eat food as soon as you can. As Listeria bacteria can grow in a refrigerator, it should be 40 degrees F or lower and the freezer zero degrees F or lower. Use an appliance thermometer to check the temperature of your refrigerator if possible; Look for restaurants and hospitality chains that promote the practice of good hygiene.

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ANOTHER STEP CLOSER TO SUSTAINABITY FOR LTM-DUO FOLD WRAPPING MACHINE Contributed by: PPT Asia Co. Ltd.

Loesch Verpackungstechnik GmbH recently unveiled the facelift given to its fourthgeneration LTM-DUO fold-wrapping machine for chocolate tablets in a new corporate design. “We naturally have also made detailed technical improvements to this bestseller and further optimised the LTM-DUO for the use of biodegradable packaging film,” according to LoeschPack Managing Director Andreas Graf.

In adopting this approach, the company is responding to strong demand in the market and is stepping up its efforts to promote sustainable development. LoeschPack already provides carbon-neutral machinery that allows packaging machine manufacturers to offset the emissions caused by their machines through certified climate protection projects.

The new machine features up-to-date colours, standardised housing and identical heights across the board. This makes the LTM-DUO more modern and functional.

NEW STANDARDS SET With the ongoing development of the LTM-DUO geared to real-world needs, LoeschPack is responding to specific customer requirements. “There is rising demand for

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packaging machines that can also process bio-polymer film,” Mr. Graf says.

The LTM-DUO is a twin station, high-performance fold-wrapping machine that sets new standards with regard to compact and hygienic design, ergonomics and flexibility, and is optimised for the use of bio-polymer film. The latest generation of the LTM-DUO with a 100-gm tablet size is operating with an output of up to 200 products a minute.

“We are especially proud of the significantly improved machine operability with bio-film,” says industrial engineer Martin Bauer, who is the product manager at LoeschPack. “Following

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extensive film tests, we can now recommend to our customers specific film types that run optimally on the LTM-DUO.” In addition to bio-polymer film, aluminium foil, coated aluminium and laminated aluminium foil, OPP foil and aluminised bio-polymer film can be used as the inner wrap. “No matter what type of film is used, preservation of the product aroma is guaranteed, thanks to the outstanding barrier properties of the LTMDUO,” Mr. Bauer, pointed out, adding that upgrade kits for the use of bio-film were available for previous models of packaging machines.

MODULAR MACHINE DESIGN Another advantage of all the machine types from LoeschPack is the increasingly modular machine design. Components such as the foil discharge are designed once and then used across all platforms. That reduces costs and streamlines the service. In the latest model of the machine, a distributed conveyor is responsible for feeding. The first stati o n o f th e LT M - D UO performs the inser t fold with aluminised bio-polymer film, while the second station

completes the full wrap in a paper envelope.

The product feed via servo belts (smart belts) is gentle on products, as it features zero accumulation, thereby minimising product abrasion.

In addition, broken tablets are sorted out via a product reject belt. Simple and fast format changeovers within a large size range underline the flexibility of the LTM-DUO. The film unwinding with pneumatic mandrel, lateral fine tuning, rapid merging, and pneumatic fine adjustment of belt tension and brakes guarantees fast roll changes and enables the processing of delicate films. The LTM-DUO also delivers secure splicing, thus enabling optimum splice preparation. Format changeovers no longer require cut length adjustment.

FASTER FORMAT CHANGEOVERS AND OPTIMAL FAULT CLEARANCE “Our highly-satisfied customers value the efficient control devices of the LTM-DUO, rapid changeovers, simple fault clearance, high standards of hygiene and user-friendly maintenance,” Sales Manager Ulrich Kreimeyer emphasised. The clear structural separation of the drive and packaging area guarantees

high hygiene standards. Every machine area is easily accessible, thereby preventing pockets of dirt as well as minimising cleaning.

“The premium quality of all the components and the excellent accessibility with doors on all sides significantly reduce the cost and effort involved in maintenance and repair.

With its latest optimisation of the LTM-DUO, LoeschPack has fulfilled every milestone in its ambitious development process for InterPack 2014. You can therefore look forward to our customised system solutions,” Mr. Kreimeyer added.

Contact details: LOESCH Verpackungstechnik GmbH at Industriestraße 1, 96146 Altendorf Tel. +49-9545-449-0 Fax: +49-9545-449-500 E-mail: info@loeschpack.com Website: www.loeschpack.com.

PPT Asia Ltd. Soi Sukhumvit 35, Sukhumvit Road, 22K Building, 4th Floor, Room 4/2, 10110 Bangkok Tel: + 66 2 261 8638 Fax: + 66 2 261 8639 Website: http://www.ppt-asia.com

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28 FOOD SAFETY & FOOD SECURITY

FOOD SECURITY AND SUSTAINABILITY UNDER ASEAN ECONOMIC COMMUNITY (AEC) Author: Dr. Pornsri Laurujisawat, Vice-President, CPF (Thailand) Public Company Limited As published in Food Focus Thailand Magazine, Issue May 2013, Vol. 8, No. 86 Food security is a basic human need because all humans need food. The Food and Agriculture Organization of the United Nations (FAO) has provided definitions of "Food security" as the food needs to be sufficient, food prevents hunger, food that is safe with adequate nutrition for growth.

Since the world has limited resources, food production with use of resources to costeffectively maximize production is vital to have enough food for all sectors. If resources are managed effectively, they inevitably lead to more increased productivity than the inefficient resource management process.

The cooperation models that cause increased food security to suppor t the world's population is referred to as 3Ps (Public Private Partnership): Where 2P roles are different; private sector (Private) is a manufacturer and trader, and the government (Public) oversees regulations. This is to point out that the private sector who faces with competition in the era of globalization needs to find tools to help make the production and marketing flexibility. Such mobility will result in the improved production of food both the quantitively and qualitatively, causing greater food security. In this instance, we will give an example of two tools i.e. technology/ innovation and supply chain management throughout the production and marketing.

The two tools in this model contribute to greater food security under factors of similar

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or less limited resources. Meanwhile, the t e ch n ol ogy /innovatio n s up p ly c hain management throughout the production and marketing are all parts of "Knowledge."

Knowledge is generated in the process of cognitive development of the private sector, driven due to competition in the era of globalization, while the government is the regulators. So if we have the collaboration of the government and the private sector, we will have food security under the accepted rules and beneficial to consumers in the model of 3Ps. In addition, there are many scales of manufacturer s in society. If a lar ge manufacturer cooperates with a small manufacturer and transfers "knowledge" of each other in many long steps of the food production chain complex, this will benefit all parties. This is another model called 4Ps (Public Private (P-Big) (P-SMEs) Partnership).

Likewise, if the ASEAN community where each countr y has different resources exchanges all that together, ASEAN will benefit with shared society even more, with increasing knowledge and with better food security.

The final model is the 5Ps society. Since there are still people who are poor, located in remote area and disadvantaged who still want food security, the 5 Principle of Social or the

5th P's will refer to anyone involved in social who can help and collaborate. For example, educational institutions, the trust fund have been invested by the government to gain a plenty of technology and knowledge. There are also various institutions involved such as research institutes, community leaders i.e.

Subdistrict Administrative Organization (SAO), or even the private sector who wants to run the corporate social responsibility (CSR) will come together to create overall food security. This will cause the social happiness and sustainability.

3 PS AND FOOD SECURITY: THE FACTORS FOR IMPROVING FOOD SECURITY 1. Increasing Food Security due to the Supply Chain Management The obvious example is food shortage during flooding duration which is likely to be caused by consumers' panic of flooding disaster. Even if they applied the knowledge about market theory and supply chain management to reduce panic among consumers (consumers' panic theory), such as transportation of eggs from other areas into the central, it would have met the consumption as soon as possible. Especially the distribution system that is better suited to the situation at the same time will make the problem less severe.

FOOD SAFETY & FOOD SECURITY 29

Moreover, when considered in terms of the purchasing power of ASEAN buying power compared to the world, the region has a moderate purchase power level or about USD 2,198 per person per year. The export of agricultural products from Thailand to the region is being increased every year.

FROM 3Ps TO 4Ps AND 5Ps FOR FOOD SECURITY AND SUSTAINABILITY

However, a good supply chain management system will cause increasing food security due to the food safety control throughout the manufacturing processes, and the processes can be traced back easily. It also contributes to the idea of creating more value-added.

This results in the better food production system of the world.

Although the production processes create food security for the same but if we have good management systems throughout the supply chain, this inevitably lead to greater food security and also provide better economic returns. This results in a maximum satisfaction of overall society.

2. Increasing Food Security due to the Technology/Innovation This is a knowledge that gives more security under the same limited resources available. We just apply the appropriate technology to benefit because the technology will produce enough food with more nutrition. In addition, a good supply chain management system with the use of technology will lead to greater food security by using the same resources.

The roles of the private sector are: Small, medium private sectors or SMEs and a large private sector cooperate with the role of farmers in contract farming.

A small private sector cooperates with a large private sector to link into the completed supply chain for production and marketing as well as creating consumer satisfaction.

SMEs are groups that play a crucial role in food security and economic empowerment since SMEs are about 90 percent of all business entrepreneurs in Thailand. Therefore, if the government has a policy to support SMEs, it will be counted as an overalll support. This is because the cycle of food production is a very long chain production. It is often found in many chains that groups of farmers or SMEs play a full cycle of food production. If we have no manufacturers, transporters, retailers or sub-chain roles, we may not drive food processing or give less food security since we have not enough potential for food production.

The principle of knowledge concept is not only improving the food security, but also creating income distribution to solve the poverty.

No matter what are the large or small communities, they can utilize the benefits from the food security. (Figure 1)

Although the technology is able to produce more food, more safety and more nutrition, the technology or supply chain management or potential applications of community knowledge requires large amount of capital. The organizations that do not have food security are often poor communities already. The point of interest is the approach to those communities to access technology, potential supply chain management and knowledge for creating food security in the community.

ASEAN’S INCREASING FOOD SECURITY In 2015, ASEAN members will merge into a complete economic community. This is a good opportunity for Thailand because the 10 ASEAN member countries have unique cultures in agricultural and food productions, which causes a lot of division of labors including the creation of a regional market expansion. In the past of ASEAN, Myanmar and Cambodia had chicken broilers in very small quantities.

But production and marketing of poultry in ASEAN would expand even more after more investing in these countries as a result of merging to AEC. Most citizens of ASEAN have accessed to more protein from chicken meat under secured broilers due to using a good technology.

ASEAN is a manufacturer of agricultural products and food. In addition, ASEAN is also a large market in the world with a population of almost 600 million people or about 10 percent of the total world population.

Figure 1 An increase of food security through Thailand-ASEAN-World management processes Additional Information: This article is based on the concepts from being a guest speaker in the symposium "Food Security: Thailand Environmental Contexts" organized by associate professor Dr. Chancharat Reodecha, Director of Thailand Research Fund (TRF).

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COUNTRY OF ORIGIN LABELLING ON FOOD PRODUCTS IN THE EUROPEAN UNION AND THAILAND: IT’S TIME TO BECOME ‘MORE COOL’!

Contributed by: Watson, Farley & Williams (Thailand) Ltd. and Wragge & Co., LLP Germany Food manufacturers in the European Union will have to become more ”COOL” within the next few years, which will affect goods imported from Thailand.

This specific requirement supplements the general prohibition that food information will not be misleading, particularly as to the country of origin or place of provenance.

Following the adoption of the European Union Food Information Regulation 1069/2011 (FIR) there will be more extensive mandatory country of origin labelling (COOL) requirements in place from 13 December 2014 at the earliest.

In addition, FIR also provides for mandatory COOL labelling requirements in the following cases: For other types of fresh, chilled and frozen meat, such as swine, sheep, goat and poultry; For cases where the country of origin of the final product is not the same as the country of origin of its “primary ingredient”.

Up until now, COOL labelling has only been mandatory for beef and veal, fruit and vegetables, eggs, poultry, meat, wine, honey, olive oil and aquaculture products, and for organic products carrying the European Union logo.

WHAT WILL CHANGE IN RELATION TO COUNTRY OF ORIGIN LABELLING IN EUROPE? From 13 December 2014, countr y of origin labelling will be mandatory in circumstances where failure to indicate the origin might mislead the consumer as to the true country of origin or place of provenance of the food. This will be triggered, in particular, if the information accompanying the food, or the label as a whole, would otherwise imply that the food has a different country of origin or place of provenance.

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Under the new regulation it will be assumed that any food ingredient representing more than 50 per cent of that food, or which is usually associated with the name of the food by the consumer, constitutes “primary ingredients”.

While a “primary ingredient” can accordingly comprise several ingredients of a food, it would likewise be possible that the said ingredient accounts for a lesser proportion than other ingredients in the product, but would be considered as essential for the foodstuff by the general consumer (e.g., tomatoes for pizza). However, as long as the country of origin of a food is not specifically highlighted on the label of a product, it will not be necessary to indicate the different origin of any of its primary ingredients.

FOOD SAFETY & FOOD SECURITY 31

By 13 December 2013, following impact assessments, the European Commission will adopt implementing Acts on the mandatory and voluntary COOL requirements. While on 5 December 2013 implementing European Union Regulations laying down rules for the application of the labelling requirements with regard to fresh meat were adopted by the Standing Committee on the Food Chain and Animal Health (which will be applicablefrom 1 April 2015). The draft implementing Acts for primary ingredients are up to now still subject to a controversial discussion.

COOL LABELLING REQUIREMENTS FOR MEAT PRODUCTS FROM SWINE, SHEEP, GOATS AND POULTRY The current draft implementing regulations for meat require that the member or non-member country in which the (last) rearing period of the animal took place as well as its place of slaughter and the batch code identifying the meat supplied to the

consumer or mass caterer are to be indicated on the label.

The minimum rearing period varies between the different animal species, from one month (poultry) to six months (swine) to two-thirds of their natural life for sheep and goats.

Where the minimum rearing period is not attained in any of the member States in which the animal was reared the indication would have to be replaced by “Reared in: Several member States of the EU”, and, correspondingly, in the case of imported animals or meat, “Reared in several third countries”. Where the meat is wholly and identifiably obtained from animals born, reared and slaughtered in one single member State or non-member country, only “Origin: (name of member State or non-member country)” would have to appear on the label.

Meat imported from non-member countries such as Thailand will be subject to less stringent labelling requirements if being placed

on the European Union market; they may bear a general indication such as “Reared in: Non-EU” and ”Slaughtered in: (name of the non-member country where the animal was slaughtered)”. Likewise, minced meat or trimmings produced exclusively from meat impor ted into the European Union will be labelled as “Reared and slaughtered in: Non-EU”.

COOL LABELLING FOR PRIMARY INGREDIENTS The situation becomes much more complex and difficult when it comes to the suggested rules for indicating the country of origin or place of provenance of the primary ingredient, where this is different to that given for the food stuff as a whole. This is due to unclear definitions in the FIR as to the scope of application of “country of origin” versus “place of provenance”.

The business name or address of the food

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32 FOOD SAFETY & FOOD SECURITY

business operator on the label does not constitute an indication of the country of origin or place of provenance of food under the FIR. In addition, food ingredients whose production involved more than one country will be deemed to originate in the country where they underwent their last, substantial, economically-justified processing, or working in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture.

Nonetheless, it remains difficult to define whether there are any labelling deviations as to the country of origin/place of provenance in a particular case. The draft implementing rules do not help with that issue. They simply stipulate rules as to the level of precision of the geographical areas to be indicated on the label and the general statement to be used in terms of different food/primar y ingredient origin.

By 13 December 2013, the European

Commission will also submit a report to the European Parliament and the European Council regarding the mandatory COOL labelling for meat (when used as an ingredient) in which the benefits, consumer needs and costs are to be discussed. A first draft report received very critical feedback from the press and its final publication has therefore been put on hold.

There will be further reports and discussions in the European Union as to any extension of mandatory COOL labelling for: meat other than beef, swine, sheep, goat and poultry; milk; unprocessed foods, single ingredient products and ingredients that constitute more than 50 per cent of a food.

These further reports are to be submitted by 13 December 2014.

FOOD PRODUCT LABELLING UNDER THAI LAW Labelling of food products for the Thai national market has to be in compliance with

the Thai Food Act, B.E. 2522, the Consumer Protection Act, B.E. 2522, and the Notifications of the Ministry of Public Health No. 194 (B.E. 2543), all of which contain provisions similar to the European FIR regulation. Food product labels in Thailand must provide basic infor mation relating to the product, including its price, quantity, intended use, recommendations for use, appropriate cautionar y measures and the product’s manufacturing and expiry date.

With regard to the origin of the goods, Thai law requires a label to specify generally the place of manufacture and, if applicable, the place of the business operation importing the product. Thai laws remain non-specific, however, on to what extent “the place of manufacturing” should be identified and how the “country of origin” is determined. Thus, for example, it may be where the animals were bred, reared or slaughtered, or merely where the final product was generated before being put on the market in Thailand through importation or domestic sale.

In practice, therefore, there appears to be a tendency for Thai entrepreneurs not to treat the country of origin labelling requirements as mandatory for food products sold in Thailand. Despite the law being imprecise in this regard, based on the Consumer Protection Act, B.E. 2522, an entrepreneur who fails to provide the correct information on a food label and deliberately causes confusion as to the origin of its goods may be punished with a prison sentence of at least six months, or a fine of at least 50,000 Baht, or both.

In the export sector, in comparison, country of origin labelling is more crucial for Thai entrepreneurs as this will determine whether they are entitled to benefit from certain customs tariff reductions and other privileges.

Certificates of origin for export goods may be issued by the Department of Foreign Trade of Thailand. To obtain such certificates, Thai exporters are required to prove that their products were fully “generated” in Thailand. In this context, “generation” in Thailand means that vegetable products were harvested in the country, and living animals were actually born and reared in Thailand.

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FOOD SAFETY & FOOD SECURITY 33

THE AUTHORS:

DR. INA GERSTBERGER

MARCUS NOTHHELFER

SAROCHA THONGPERM

She is Rechtsanwältin/Director and heads the German Food and Drink/Life Sciences practice at Wragge & Co LLP. She is a frequently recommended lawyer for food law and related areas (pharmaceuticals, cosmetics) in Germany.

He is a German Rechtsanwalt and Par tner of the international law firm Watson, Farley & Williams. He is based in Bangkok where he is responsible for the firm's German Desk, South-East Asia.

His clients include companies engaged in international trade and distribution.

She is an Associate of Watson, Farley & Williams in Bangkok. She graduated from Chulalongkorn University in 2007 and obtained a master’s degree as an Ecoscientia scholar in Switzerland in 2012.

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34 FOOD SAFETY & FOOD SECURITY

THAI FOOD LAWS OFFER STRONG PROTECTION FOR CONSUMERS

Contributed by: Angus Mitchell, Pavitra Sakulchaimongkol, Matthew Christensen, DFDL in Thailand As consumers, we often do not think about the specific ingredients that go into the food that we purchase from retail markets. Instead, we assume that government agencies regulate and supervise the food production facilities to ensure that our food is manufactured under sanitary conditions, free from contaminants and properly labelled, provided us with complete and truthful information about what is contained inside the box, bag or jar.

Are these assumptions well-founded? Thailand has a number of articles of legislation that regulate the domestic food production industry as well as the import of food products; as consumers, this legislation should give us confidence in the purchases we make.

LICENSING The Food Act, B.E. 2522 (1979) is the primary legislation that regulates the production, sale and imports of food in Thailand. Before being allowed to operate, a Food Producer Licence must be obtained from the Food and Drug Administration (FDA). A separate FDA licence must be obtained by food importers.

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A number of restrictions that deal with sanitation and the prevention of food contamination must be adhered to by a food producer after receiving the FDA licence.

Most are standard practice for any properly regulated food production facility anywhere in the world, such as those that address the hygiene of employees and maintenance of equipment.

In addition, employers must not hire workers who are suffering from drug addiction or alcoholism. Workers on food production lines must provide medical certificates confirming that they are not suffering from a proscribed list of diseases set out in the regulations.

Food production facilities must provide their employees with annual medical examinations and issue medical certificates as evidence.

The penalty for operating an unlicensed food production facility without FDA approval is a Baht 30,000 fine and/or imprisonment for up to three years.

In addition to FDA licensing, under the Public Health Act, B.E. 2535 (1992) food producers must also obtain a permit from the jurisdiction in which they intend to operate, because

they will be conducting a business that may be cause harm to consumers. Local officials are empowered to control the food production within their respective jurisdictions and can impose additional restrictions beyond those listed in the Act, as and when deemed necessary.

The permit to operate does not apply to the production of food in markets such as the a la carte sections of grocery stores, hawkers (i.e. street vendors), food produced in restaurants (which are regulated under a different Act) or food for household consumption. If it is found that the permit holder is in violation of one or more of the provisions of the Public Health Act, the administrative official has the right to suspend the permit to operate the food production facility for a “reasonable period� but not in excess of 15 days.

FOOD PRODUCTION Under the Food Act, the FDA will conduct annual inspections of food production facilities to ensure full compliance with the law. These inspections are thorough and detailed to the

FOOD SAFETY & FOOD SECURITY 35

level that even the recipes of the food products being manufactured are tested for ingredients. Food production facilities are required to obtain a certificate of approval from the FDA for each recipe which they intend to mass produce . The recipe certification also applies to imported food.

If a manufacturer is found to have altered any of its recipes without FDA authorisation, the responsible persons could face up to two years’ imprisonment and a potential suspension or loss of their food production licences. In addition, administrative authorities in the jurisdiction where the facility is located are empowered to conduct health inspections as necessary under the Public Health Act. Genetically modified foods (GMOs) are a contentious issue worldwide due to their generally negative image as “frankencrops” and that the technology is so “state-of-theart” that the side effects of eating such foods are still unknown. Germany, together with the rest of the European Union, upholds some of the most stringent GMO laws found anywhere in the world. The German courts even struck down a GMO-related lawsuit filed by Monsanto against the German Government; a rare loss for Monsanto.

The debate over GMO products has not yet made it to Thailand for one main reason – under Sections 5 and 6(8) of the Food Act, it is illegal to produce, import or sell genetically modified foods in Thailand. The penalty for doing so is between six months and two years imprisonment, and/or a hefty fine.

Food Act and the Consumer Protection Act B.E. 2522 (1979). Labels must be approved by the FDA prior to use, and must include manufacturer contact information, and the product registration number. Labels must be in the Thai language and must contain truthful statements about the material facts concerning the goods. They cannot contain any wording that may mislead the consumer as to the contents of the product.

Required information about the contents i n cl u d e s p r ic e , q uantity, us age , recommendations, caution, manufacturing date and expiry date. Failure to provide any of this information, or the inclusion of false or misleading information, can result in a financial penalty of up to Baht 100,000 and/or imprisonment not exceeding six months.

A second “nutrition label” is also required under the Food Act for specific other food products, such that manufacturers of these products are required to display certain nutritional information including the servings per package and “Recommended Daily Dietar y Allowances for Healthy Thais”. In addition, the phrase “Should eat less and exercise for better health” must be stated on the food label in bold text and in a

colour that contrasts with the label.

DFDL, a full-service law firm, established a permanent presence in Bangkok in November 2005 to better suppor t its growing client base in Thailand, especially related to Thai-based financial institutions and businesses investing in Cambodia, the Lao People’s Democratic Republic, Viet Nam, South Asia and beyond. Since then, it has expanded and established a thriving real estate practice with offices in Samui and Phuket; a corporate finance practice group advising borrowers and lenders on raising funds; and a labour law practice group.

Contact details: Email: Angus Mitchell - angus.mitchell@dfdl.com Pavitra Sakulchaimongkol - pavitra@dfdl.com Matthew Christensen - matthew.c@dfdl.com

LABELLING The labelling of food is regulated by both the

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36 FOOD SAFETY & FOOD SECURITY

HOW LENK GROUP HANDLES FOOD SAFETY, QUALITY REQUIREMENTS OF CONSUMERS Contributed by: Heiko Lenk, Managing Director of LENK GROUP In today’s world, news can spread rapidly.

Food safety has always been a major issue, which in the case of food safety scandals can result in severe financial losses and damage to the reputation of manufacturers and impor ters. There have occasionally been reports on food safety scandals related to contamination by pathogenic bacteria or banned or carcinogenic substances in food products.

Therefore, food manufacturers and importers need to ensure that food products are produced at a high level of food safety standards. They have to ensure that the ingredients contained in their products comply with regulations of end-markets. Any food additives or preservatives have to be used in according with regulations and declared correctly on labels.

The importing countries in Europe (for example, Germany) have a monitoring procedure to ensure that imported food comply with European Union standards.

Containers entering destination ports are randomly checked by the authorities to make certain that the contents meet certain parameters. The products are also analysed for banned drugs or antibiotic residues that are potentially harmful to human health. Any containers that do not comply with the standards will be rejected and sent back to the countries of origin.

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COMMITTED TO HIGH STANDARDS As a sourcing and importing company, Lenk Group – comprising Lenk Frozen Foods (Asia) Co., Ltd., and Lenk Seafood Services GmbH – is committed to ensuring high quality and food safety standards. The company is involved in sourcing and importing frozen seafood products from Asian countries including Bangladesh, China, India, Indonesia and Viet Nam. Lenk Group has been supplying the food service and retail industries in Europe for more than a decade and recently expanded its business to the Thai market.

The controlling process employed by Lenk Group includes screening, shortlisting and auditing manufacturing facilities of suppliers to enable their inclusion on the approved suppliers list. The suppliers must be certified with global standards such as BRC, HACCP and IFS to ensure consistent quality and safety. It is also a company policy to source products, whenever possible, from suppliers who practice sustainable aquaculture.

Lenk Group has an experienced and competent quality control and quality assurance team to control the overall quality of products, from the raw material stage until the end of the production process. Lenk Frozen Foods (Asia) Co. Ltd. in Thailand is certified with ISO standard 9001:2008 by

TÜV Süd. During recent years, the company has grown steadily and has continued to develop and strengthen its objective of becoming the leader in seafood sourcing.

ALTERNATIVES FOR CONSUMERS During 2013, Lenk Group has launched sustainable cer tified products, including Pangasius fillets and Tilapia, to provide consumer s with alter native premium products that are natural, clean, and produced from sustainable and responsible aquaculture.

With long experience in frozen food and seafood from Asia, Lenk Group and its top brands “Top Sea” and “Sea-Scout” are recognised and respected by all business partners.

Contact details: LENK Frozen Foods (Asia) Co., Ltd. 1469/4 Pattanakarn Road, Soi 31/1, Suan Luang District, Bangkok 10250, Thailand Tel.: +66 (0)2-713-7820 to 3 Fax.: +66 (0)2-713-7825 website: www.lenkfrozenfoods.co.th LENK Seafood Services GmbH Rathausstr. 28 22941 Bargteheide, Germany Tel.: +49 4532 28808 0 Fax.: +49 4532 28808 10 website: www.lenk-frozen.com (under LENK Seafood Service GmbH)

FOOD SAFETY & FOOD SECURITY 37 Below: Wannida Sae-tang (second left), Kasetsart University student, Sarocha Theng-ha (centre), Mae Jo University student, Yosapol Harnvanichvech (second right), Kasetsart University student were the top three Thai winners who participated in the Bayer Young Environmental Envoy study tour in Germany in November this year.

Above: Sarocha Theng-ha (left) and Wannida Sae-tang in the biolab of Bayer CropScience in Manheim, Germany.

YOUNG ENVIRONMENTAL ENVOYS FROM 19 COUNTRIES VISIT BAYER Contributed by: Bayer Thai Co., Ltd. Fifty young people from 19 emerging and developing countries in Latin America, Africa and Asia were invited by Bayer AG to visit Germany on a one-week study tour during November 2013. The group comprised entrants whose environmental projects in their home countries were selected as winners from among more than 1,900 participants in the Bayer Young Environmental Envoy Programme (BYEE).

The study tour was organised by Bayer and the United Nations Environment Programme (UNEP) as part of their global partnership.

The discussions, lectures, workshops and field trips held during the tour centred on sharing ideas and thoughts on sustainability in food production and consumption.

Following intense discussions with the students, Bayer CropScience CEO Liam Condon noted that he was impressed with their level of knowledge and commitment. “Young people who get involved in the urgent issue of securing an adequate and healthy food supply for the global population deser ve high recognition and support,” Condon said.

In supporting this statement, James Lomax, UNEP Programme Officer for Agri-Food, said: “Through our global ‘Think, Eat, Save’ campaign, we want to change behaviour and encourage sustainability in food production and consumption. The commitment demonstrated by these young people is exemplary, and this exchange on an international level gives them

a tremendous opportunity to expand their h o r i zon s and d e ve lo p ne two r ke d solutions. ”Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH advisor for sustainable agriculture, Heike Ostermann emphasised that: “In a time of largely growing demand for food, high losses within the value chains are unacceptable. These losses not only undermine food security, they also impose an important environmental burden on our limited natural resources. Development co-operation is the key to fostering the minimisation of food losses and food waste as well as raising efficiency for a sustainable food production.”

This year, three Thai envoys; Yosapol Harnvanichvech, Kasetsart University, Sarocha Theng-ha, Mae Jo university, Wannida Sae-tang, Kasetsar t Univer sity, as the countr y representatives, have the opportunity to spend a week in Germany, at the invitation of Bayer to find out more about environmental protection and sustainable development. The students also gained practical laboratory experience by conducting gained practical laboratory experience by conducting scientific experiments at Bayer's BayLab Plants and BayLab Plastics. The agenda also included wor kshops as well as an exchange of experiences and ideas with other students and experts from Bayer, UNEP and the State Environmental Affairs Department.

Nations Water Decade Programme on Capacity Development (UNWDPC) in Bonn and Messe Düsseldorf, which is a co-operating partner with UNEP and the Food and Agriculture Organisation of the United Nations (FAO) in the “Save Food” initiative.

The Thailand BYEE programme is organised

by Bayer Thai Co., Ltd. in co-operation with UNEP and with support from the Thai public sector and non-profit organisations concerned with youth and the environment, including: the Office of the Higher Education Commission, Ministry of Education; the Department of Environmental Quality Promotion, Pollution Control Department, and National Park, Wildlife and Plant Conservation Department, Ministr y of Natur al Resources and Environment; Office of Welfare Promotion, Protection and Empowerment of Vulnerable Groups, Ministry of Social Development and Human Security; the Seub Nakhasathien Foundation; and the Thailand Environment Institute.

Contact details: Chayanan Boonyaperm Tel: +66 (0)2-232-7018 E-mail: chayanan.boonyaperm@bayer.com www.byee.bayer.com Details of the Bayer-UNEP partnership are available at www.unep.bayer.com

Field trips were organised to the AVEA waste disposal centre in Leverkusen, the United

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FEATURED INTERVIEW WITH GTCC FOUNDING MEMBERS 38

FIFTY YEARS ON: FOUNDING MEMBERS’ VIEWS OF GTCC’ S PAST AND FUTURE Thailand as well as in Germany.

“A German Chamber of Commerce should be founded [in Bangkok]”. That was an outcome of negotiations between the Federal Republic of Germany and the Kingdom of Thailand in the autumn of 1961. Finally, on 20 July 1962, the Chamber was inaugurated in Bangkok in order to promote commerce as well as bilateral economic relations between the two countries. Representatives from various companies and the public sector attended the inauguration ceremony at the Erawan Hotel, which marked the beginning of a more than 50-year success story – the German-Thai Chamber of Commerce (GTCC).

GTCC, a non-profit entity, is one of the biggest foreign Chambers of Commerce inThailand and a leading Chamber of

UPDATE 4/2013

Commerce in the Association of Southeast Asian Nations (ASEAN). As a member of the German Chamber Network (AHKs), which has 126 offices in 86 countries, GTCC offers its experience, networks and services to German as well as local companies. GTCC has dedicated itself to serving the needs of the German-Thai business community in terms of economic and legal information.

The advice, information and mediation provided by GTCC, have proved to be highly valuable and helpful to many and varied companies. For that reason, GTCC has an excellent reputation in all sectors of the German and Thai business world. In addition to offering a comprehensiverange of services and expertise gathered for more than 50 years, GTCC engagingly identifies new business and investment opportunities in

GTCC constantly works to identify and meet the expectations of its members as well as non-members; this objective has been delivered not only by offering a range of consultancy services, but also through the organisation of diverse social network events, seminars and workshops, breakfast talks and luncheons as well as regular business delegation visits and site visits to member companies.

As a result of these continuous effor ts together with the successful work that has been realised by GTCC, membership has increased remarkably. Having started with 57 founding members, the Chamber now has, for the first time in its history, more than 500 effective members.

As this success is based on the continuous suppor t of our founding members, we thought it more than appropriate to start a series of interviews with them as an outlook

39

GTCC FOUNDING MEMBERS OF MORE THAN 50 YEARS ALUCON Public Company Limited Bayer Thai Co., Ltd. B. Grimm & Co Ltd Lufthansa German Airlines Rieckermann (Thailand) Co., Ltd. Thonburi Automotive Assembly Plant Co., Ltd., United Flour Mill Public Company Limited Wu Tung Pak & Co., Ltd.

in which they share their thoughts and visions on the various aspects of the potential of ASEAN Economic Community (AEC) as well as on trade and investment competitiveness of Thailand in ASEAN. In addition, the interviews will provide the opportunity for them to provide insights on their experience through the dynamic and volatile periods of trade and investment environment in Thailand and the region, plus the lessons they have learnt.

Fur thermore, inter viewed companies – Alu co n , B AY E R , B .G r i m m , L u f t h a n s a , Rieckermann and Wu Tung Pak – agree on the fact that Thailand has considerable potential as a business hub, and not just because of the country’s advantages of the country’s attractive geographic and strategic location, highly-qualified human resources and a stable investment environment. Moreover, the Kingdom is already a hub within ASEAN, according to Mr. Link, Chairman of B. Grimm Group, and Mr. Takeuchi, Managing Director of Alucon, who are confident that Thailand is very “eager to stay competitive”. However, they also point out that many improvements are still needed, such as vocational education and infrastructure reformation. Yet the advantages still clearly outweigh the disadvantages.

Being economically characterised by steady growth, strong exports and a vibrant domestic consumer market, Thailand continues to attract foreign as well as domestic investors.

For this reason, the work of the German-Thai Chamber of Commerce still is, and will remain highly beneficial and relevant to its members and stakeholders. Therefore, the result of the negotiations between the Federal Republic of Germany and the Kingdom of Thailand in the autumn of 1961 proved to be correct and farsighted.

Without our founding and suppor ting members, the Chamber’s excellent reputation and success would not have been possible.

Hence the special occasion of welcoming the 500th member this year, also serves as a way to say “thank you” to all of our members, and to ask for their advice and vision concerning Thailand as well as its trade and investment competitiveness. The following interviews with founding as well as second generation members of GTCC provide helpful and informative answers to those questions.

http://thailand.ahk.de

FEATURED INTERVIEWS WITH GTCC FOUNDING MEMBERS 40

HARALD LINK Chairman of B.Grimm GTCC: From selling energy, cooling and healthcare to building real estate and selling fashion brands - your company is active in a broad variety of sectors. What are the advantages of that strategy and what are the downsides?

Mr. Link: Being active in a range of businesses has only upsides, if they are managed professionally and independently, have capable boards, and have owners who know how to behave as professional shareholders.

In such cases it is similar to asset diversification of a portfolio that one holds with a private bank. Private bankers always recommend investing in a variety of companies and sectors.

Problems occur when managers are required to manage too-diverse a business and therefore lack the necessary understanding or time.

For a single business the downside of diversification would be a lack of knowledge.

Therefore, it may be wiser to extend markets by the usual strategies of extending the product or market range or to ver tically integrate.

GTCC: B.Grimm covers some of the most important industrial sectors in Thailand,

UPDATE 4/2013

‘THAI INVESTMENT ENVIRONMENT IS GOOD, BUT MANY IMPROVEMENTS STILL NEEDED’ such as private power generation, biodiesel production, healthcare and transportation.

Do you feel that it is possible for social responsibility to come out of that? How do you live up to it?

Mr. Link: B .Gr imm str ives to do all its businesses with compassion for the development of civilization. We believe most small business owners, who run their businesses for the love of what they do, share that with us or we share with them.

We would like all who come into contact with B.Grimm to have a good experience, we try to participate in the development of society outside our scope of work and hope that all our staff feels happy for the success of their colleagues and help them to succeed.

We believe that it is our responsibility as

management and owners to enable our people to put their best effort into their work, enjoy a positive work environment and be happy to come to their work place. At the same time, we set far-reaching goals in order to remain a dynamic group of people who can be happy with their achievement.

GTCC: How many people work for B.Grimm in Thailand?

Mr. Link: B.Grimm currently only employs about 1,500 staff, as our businesses are either very capital-intensive or operated through a wide range of distributors and dealers.

GTCC: Does B.Grimm foresee expansion into other sectors and industries?

Mr. Link: For the time being, we are implementing our 75 billion baht power plant

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investments. Of the 13 new plants planned, 3 are in operation since November 2013 and 4 are under construction. The remaining 6 plants will be built by 2019. We are also expanding all other businesses, partly regionally and partly by adding new products. We plan to triple our revenue from 2012 to 2018 to reach 60 billion baht in sales.

GTCC: In which sectors do you see the most growth or best business opportunities within Thailand?

Mr. Link: Our own growth will mostly come from the energy sector. At the same time, we expect solid growth in all other areas of our activities, especially in cooling, health-care and transportation. For Thailand, the food sector should still be an area of substantial opportunities, especially in vertical integration, brand building and becoming a centre for worldwide expansion.

GTCC: In your personal view, is the current business and investment environment in Thailand sufficiently favourable to attract new investments?

Mr. Link: The investment environment in Thailand over the last decades has been good. However, many improvements are still needed such as vocational and engineering education, encouraging research, acceptance

of arbitration awards, reducing logistical costs by bringing goods transport on to trains, continuation of the city commuter improvements to keep Bangkok attractive for foreigners and Thais and many more. We should be mindful of the recommendation of the competitiveness reports and look at how [the Republic of] Korea and Malaysia have advanced much more than us.

GTCC: Do you think Thailand is already qualified and capable enough to become an industrial/production hub within ASEAN? If not, what should be improved?

Mr. Link: Thailand is already a hub and will continue to be so, if we do things right.

Malaysia, Singapore and Viet Nam are competing for this position, so we need to try harder.

GTCC: How is B.Grimm preparing for the upcoming ASEAN Economic Community?

Mr. Link: B.Grimm plans to do business in neighbouring countries within the fields of our activities. In the next two years, we will increase our businesses substantially in those countries.

GTCC: Throughout the time you have been running B.Grimm, what has been your overall perception of economic and trade

B.Grimm is a well-diversified business active in the fields of energy, cooling, health care, lifestyle, transport and real estate. B.Grimm was established in 1878, which makes it one of the most senior corporate citizens in Thailand. Mr. Link joined B.Grimm as Assistant to Managing Par tner in 1979 and was appointed as Chief Executive Officer in 1987.

From then on, B.Grimm transformed from a trading house into an industrial conglomerate and forged joint ventures with a number of highly reputable corporations such as Amata, Beijer, Carrier, CP, Hamon, KSB, Maquet, Merck, Siemens and Sumitomo.

B.Grimm seeks to contribute to high living standards for everyday life of the Thai people and to inspire other organisations with its philosophy of doing business with compassion for the development of civilisation. development in Thailand and in which direction is it heading?

Mr. Link: Thailand has grown at a sustainable rate during the past few decades. For me, 4 to 5 per cent growth for Thailand is just fine as it will enable the educational and infrastructure systems to keep pace with the growth.

Higher growth rates will only result in more indebtedness and a lack of qualified people.

Employing unskilled labour from abroad is a solution only when we have a programme of integration and education ready for them.

http://thailand.ahk.de

FEATURED INTERVIEWS WITH GTCC FOUNDING MEMBERS 42

It is already 55 years since Lufthansa offered its first flight from Germany to Bangkok. The German airline stayed for good – and it currently employs more than 1,000 people in Thailand. Dirk Grossmann, the General Manager for Passenger Sales, Thailand, Cambodia, Lao People’s Democratic Republic (Lao PRD) and Myanmar joined the office in Thailand two years ago.

DIRK GROSSMANN

General Manager, Passenger Sales Thailand, Lao PDR, Myanmar, Cambodia of

LUFTHANSA GERMAN AIRLINES connect Thailand with Europe, which we do with our three daily flights to Frankfur t, Zurich and Vienna, all leading hubs of our Lufthansa Group.

In Thailand and the region we appreciate our long-standing partnership with Thai Airways that offers our customers many tailor-made onward connections to the most important national and regional destinations.

‘THE KEY TO ECONOMIC GROWTH IS MOBILITY’ GTCC: Mr. Grossmann, Bangkok seems to be quite important for Lufthansa. There is a daily flight from Frankfurt to Bangkok as well as connections to Ho Chi Minh and Kuala Lumpur. What is it that Lufthansa appreciates about Thailand?

Mr. Grossmann: Well, first of all, Thailand simply is an exceptionally beautiful country and its people are friendly, dedicated and hard-working. This means that inbound tourism as well as the economy of this great nation are both prospering. There is not much we could appreciate more. Also, in Lufthansa’s experience we have found the Thai market to be dynamic and trustworthy.

The growth of our business here is deeply connected with the growth of the country’s economy: it has steadily increased over the years and we are positive this will continue.

GTCC: Do you want to serve further routes in South-East Asia, starting in Bangkok?

Mr. Grossmann: Our core business is to

UPDATE 4/2013

GTCC: Which airline is your preferred partner?

Mr. Grossmann: We enjoy many successful partnerships that offer great additional benefits to our joint customers. Of course, they include our group partners, Swiss and Austrian Airlines, and our Star Alliance partners globally. Thai Airways, one of the five founding members of Star Alliance together with Lufthansa, is our strong partner in this market. We are very proud to be able to partner with Thai Airways, one of the world’s leading airlines, and to be able to use Bangkok’s great Suvarnabhumi Airpor t as a regional hub for our customers.

GTCC: Which other developments do you foresee occurring in the near future,

perhaps also with a view to the upcoming ASEAN Economic Community (AEC)?

Mr. Grossmann: The AEC is quite important for us. There are different programmes aimed at enhancing the infrastructure between the ASEAN members, for example, the master plan of ASEAN connectivity. The ASEAN members understand that the key to economic growth is infrastructure and excellent mobility. It is good to see that they want to improve those areas. Lufthansa as an airline is able to build those bridges.

Also, a smart visa system for the ASEAN region is in the making, similar to the Schengen system in Europe. This visa system will make travelling within South-East Asia much easier and will attract tourists – which will be a good thing for the economy, too.

We appreciate and support these initiatives.

GTCC: Taking about the Lufthansa business on the ground, do you already cross borders when it comes to distribution?

Mr. Grossmann: There are no borders any more when it comes to distribution. All sales have become global with the digitalisation of our lives and the Internet. Our industry has to adapt to the changing needs and purchasing behaviour of our customers. Aside from our homepage www.lufthansa.com, we need to be there where our customers are.

In addition to our wide network of travel agency partners, we are promoting a franchise concept for them, the so-called Lufthansa City Centres. There are already four City Centres in the Indo-China region – two in Thailand, one in Cambodia and one in Myanmar. We also plan to establish them in the Lao People's Democratic Republic and in the north of Thailand. Those agencies are great partners for representing Lufthansa in the markets.

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GTCC: Mr. Jivamongkol, your family has been trading German steel products for 74 years now. How has the demand for those products developed over time?

Mr. Jivamongkol: When my grandfather started the trading business, the need for high-quality steel products was already strong.

This hasn’t changed – and I expect the demand to increase further during the coming years.

GTCC: Why do you think so?

Mr. Jivamongkol: First of all, people ask for German goods because of their quality. That is why we still import 30 to 40 per cent of our products from Germany, although they are much more expensive than Chinese products.

Thailand has a good foundation for trading rather expensive, high-quality products.

Compared with other ASEAN countries, Thai people have high purchasing power; in addition, the middleclass continues to expand.

Of course, there is also a great deal of uncertainty at present, and growth might therefore be slow. However, in the long term, I think more and more end users will ask for products with a higher standard.

GTCC: Who are your customers?

Mr. Jivamongkol: We only sell to distributers.

In the early days of our company, those were mainly family businesses with small shops.

Today, most of our products are sold to hypermarkets outside Bangkok. Some of our customers also resell our products in other countries.

GTCC: Are you selling your products directly to other ASEAN countries too?

Mr. Jivamongkol: Right now, our salesmen don’t cross our borders. We have tried to trade in Myanmar and the Lao People’s Democratic Republic, but it did not work out for us due to currency fluctuations and some difficulties with receiving payments.

We would still like to sell our products to other ASEAN members, and the forthcoming AEC will probably make it easier for us.

VIVIT JIVAMONGKOL

Assistant Managing Director of

WU TUNG PAK & CO., LTD. ‘DEMAND FOR HIGH-QUALITY PRODUCTS WILL INCREASE’ However, some problems will remain, for example, currency fluctuations. Looking to the future, joint ventures with local partners in other ASEAN members might be the best option for us.

GTCC: In what way will the AEC affect you?

Mr. Jivamongkol: The main point of the AEC is to make importing and exporting between the ASEAN members easier, which in general will be a good thing for us, as I already mentioned. However, having a common market also means that the capacity for trade and therefore the competition will increase – especially when Myanmar opens up, which is likely to happen very quickly.

GTCC: How are you preparing for those changes?

Mr. Jivamongkol: In terms of our range of products, I think we already offer enough.

What we need is a bigger sales force to open up new markets. Right now, we are only selling in the big cities. There are plenty of

small districts left where we could go if we have enough salesmen to cover them.

However, finding good employees is one of our main problems in Thailand. Hopefully, the AEC with its common market for workers will solve this predicament.

In the early 1930s, Wutungpak went to Germany to study chemical engineering.

He not only came back with a degree, but also with a business idea. In 1939, he started distributing construction goods in Thailand on behalf of the “eye brand”.

More than 70 years later, the company Wu Tung Pak owns the brand and offers more than 120 products made from German steel. Wutungpak’s grandson, Vivit Jivamongkol, joined the company’s management four years ago. He explains his expectations for the future, especially after the ASEAN Economic Community (AEC) is launched in 2015.

http://thailand.ahk.de

FEATURED INTERVIEWS WITH GTCC FOUNDING MEMBERS 44

As Country Group Head, North ASEAN Region, and Managing Director of Bayer Thai Co., Ltd., Ms. Celina Chew has gained a very good impression of Thailand as a strategic location to do business, and has a positive view of Thailand’s future and the long-term outlook for the country’s economic growth. With regard to the establishment of the ASEAN Economic Community (AEC), while Ms. Chew does not expect any major changes for Bayer Thai, she foresees a steady enhancement of trade in general and a continuing important role in the Bayer group.

CELINA CHEW

Country Group Head of North ASEAN Region and Managing Director of

BAYER THAI CO., LTD.

‘MATERIAL SCIENCE SECTOR HAS GREAT POTENTIAL IN ASIA’ GTCC: Ms. Chew, you have been Managing Director of Bayer Thai for more than two years now. In which way have you influenced the company policy so far?

GTCC: The Bayer Group has three main businesses – health care, crop science and material science. Which business is most important for Bayer Thai?

Ms. Chew: Bayer is a global company with global policies that reflect best practices. Part of my job is to ensure our global policies are implemented in Bayer Thai, while taking into consideration local conditions.

Ms. Chew: All three of Bayer’s main businesses are well represented in Thailand and all three businesses are important for not only Bayer Thai, but also Thailand. This is because our portfolio of products suits Thailand very well.

In line with our mission, “Bayer – Science for a Better Life”, we apply scientific research to deliver products and solutions that improve people’s lives in the fields of health care, agriculture and high-tech materials. Thailand is a significant agriculture economy and is a “kitchen to the world”, and Bayer CropScience provides innovative products that help farmers to increase their productivity. Thailand also has an ageing population that often experiences chronic, non-communicable diseases. Bayer Healthcare has innovative products and therapies that address these health issues.

As you know, Bayer Thai has a long history in Thailand – we celebrated our fiftieth anniversary last year. Our colleagues are therefore very experienced and professional.

I hope I have brought a fresh pair of eyes and some new ideas to Bayer Thai, as this can be useful in terms of bringing new perspectives and sharing of experiences from elsewhere.

Also, being Australian, I interact with people quite informally but, of course, with respect.

I hope this helps to create an environment in which my colleagues feel very comfortable sharing their ideas. I encourage the different businesses and departments to exchange ideas and share resources, so that we can enhance efficiency and effectiveness, and make work more fun.

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Our biggest business in Thailand is Bayer MaterialScience, which supplies industries such as automotive, appliances, construction and furniture, all of which are important to

the Thai economy. We have a global-scale production plant at Map Ta Phut that supplies the region with polycarbonate materials. This material has many uses, for example, in the electronic, construction and data storage industries. We also have a production site in Bangpoo for agrichemical products and polyurethane systems. The latter is used for insulation, automotives, moulded parts and elastomer systems among other products. .

Due to the current growth rate in Asia, material science is a sector that has, and will continue to enjoy a great deal of potential.

GTCC: What percentage of your production do you export?

Ms. Chew: We export more than 50 per cent of our production from Thailand. Depending on the products, some are exported directly and others are exported to a regional singlebilling entity in Hong Kong for resale.

GTCC: How will the forthcoming ASEAN Economic Community (AEC) affect you?

Ms. Chew: Currently, AEC 2015 is not affecting us much. Of course, we continually monitor developments in the progress towards AEC 2015 and adjust our operations accordingly. We are present in almost all the other ASEAN countries. Although we do not expect big, sudden changes for Bayer Thai as

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a result of AEC 2015, the prospect of market enlargement as a result of the establishment of an integrated market is promising. The free flow of goods, services and people will enhance trade in general. The proposed harmonisation of regulatory frameworks will also be beneficial for business. For example, if the regulatory frameworks for drug approvals in ASEAN are harmonised, this will help to support earlier access to medicines for patients in the ASEAN region.

GTCC: In your personal view, how have you found Thailand as a place for doing business?

Ms. Chew: So far, my impression of Thailand is really positive. There are a large number of qualified people here, especially when it comes to engineers. Interestingly, when I first moved to Thailand, I was told that Thai people are reluctant to speak up and that I would have to be very patient in gathering feedback, but that is not what I have experienced since I arrived. Actually, Thai people have concerns, wishes and aspirations for a better life, similar to people in Australia or China, where I previously worked. It is just a matter of differences in approaches and culture, which is reflected in the ways people express themselves.

GTCC: What is your outlook for Bayer Thai and Thailand in general?

Ms. Chew: Although the Thai economy is currently slowing down and has been in a technical recession, I am positive about Thailand’s future. I believe that, in the long term, the economy will grow. The income levels of people will rise, and with higher income, they will want better health care, better food in terms of variety, quality and safety, and lifestyle products such as mobile phones, furniture, appliances and cars. Luckily, that is exactly what Bayer is providing. Our portfolio of products focuses on health care, agriculture and high-tech plastics, which serve exactly these needs.

In addition, Thailand is in a good strategic geographic location. We are situated near emerging markets such as Myanmar, where we have an office, and growing markets such as Viet Nam. So Bayer Thai will continue to play an important role for the Bayer Group.

TAKAAKI TAKEUCHI

Managing Director of

ALUCON PUBLIC CO., LTD. ‘THAILAND IS EAGER TO STAY COMPETITIVE’ GTCC: Mr. Takeuchi, your family’s company, Takeuchi Press Industries, produces cans and tubes in Japan. How come you took over Alucon, a company in Thailand built by a German self-made entrepreneur?

Mr. Takeuchi: Alucon and Takeuchi Press Industries have a long history of business relations.

When Mr. and Mrs. Schneider paid a visit to our company in 1994, the yen currency was very strong, making it difficult for us to export our products. So we had some thoughts about moving our home base to another country. At the same time, Mr. and Mrs. Schneider were in search of a replacement, due to the fact that they do not have any children. So everything fitted in a way, and after some consideration we decided that I would go to Thailand to join Alucon while my brother would stay in Japan, taking care of our family business.

GTCC: What is the relationship between those two companies like today?

Mr. Takeuchi: While Takeuchi Press Industries is only producing cans and tubes for Japan, Alucon is exporting to 32 countries around the world. So we share the market without competing with each other. Also, we have established a strong business relationship

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FEATURED INTERVIEWS WITH GTCC FOUNDING MEMBERS 46

between thecompanies. Every fourth exported can and tube goes to Takeuchi Press Industries, who is offering them on the Japanese market.

GTCC: Alucon is the biggest producer of tubes and slugs in the Asian market, two of every three of which are sold out of Thailand.

How will this business change with a common market for goods in the ASEAN Economic Community (AEC) after 2015?

Mr. Takeuchi: We can already export our empty cans and tubes without paying duty tax, so the free flow of goods does not affect us directly. However, some of our customers have to pay taxes when they export the filled products. The AEC will make trading much easier for them and will, in the end, have a positive effect on us.

Besides this, the Thai Government will have to make some changes to keep Thailand competitive. That might be a good thing for us as well.

GTCC: What do you mean exactly?

Mr. Takeuchi: A good example is income tax.

The Thai Government has already reduced it from 30 to 20 per cent, but in Singapore it is even less. When the AEC connects the markets, Thailand will have to lower it again

UPDATE 4/2013

in order to keep pace. Also, raising the minimum wage was a clever move by the Thai Government. It is chasing companies with low-cost production out of the country, while companies who are willing to invest will come here. For Alucon, those developments are quite positive.

GTCC: So you think Thailand is on the right track for the future?

Mr. Takeuchi: The country is eager to stay competitive, which I appreciate as someone who is doing business in Thailand. The only thing that could be enhanced even further is the infr astr ucture , especially land transportation, such as roads and railways, which should be improved to connect with neighbouring countries.

That would benefit the AEC.

Sometimes a high import tax is all you need to start business. In the early 1960s Colgate had to pay 65 per cent tax to impor t its toothpaste into Thailand.

Mr. Har tmut Sc hne id e r, a young businessman from Hamburg who was distributing German products in Thailand, saw an opportunity. In 1961, he built Thailand’s first factor y for aluminium collapsible tubing. Nowadays, Alucon is the world’s third-biggest manufacturer of tubes and slugs. Mr. Takaaki Takeuchi became the second managing director in 1997.

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DEREK J. BENKE

It all started with commodities such as batteries, rubber tyres and toothpaste – they were the first products that German company Rieckermann impor ted and traded in Thailand more than 60 years ago.

Now, the company’s trading goods are somewhat bigger. Rieckermann Thailand sells and services German machines for every sector of industry. In this interview with the Ger man-Thai Chamber of Commerce , Managing Director of Rieckermann Thailand Derek Benke shares his outlook for trading in Thailand.

Managing Director of

RIECKERMANN (THAILAND) CO., LTD. ‘WE HAVE NO NEED TO FEAR THE COMPETITION’ GTCC: Mr. Benke, given your experience of the past few years, what is your view of the progress of Thai industry? Is it changing due to the upcoming ASEAN Economy Community (AEC)?

Mr. Benke: There is definitely a mind shift going on right now. Our Thai customers realise that they have to become more competitive if they don’t want to lose market share to the strong competition from China and other Asian countries. More and more companies are asking for high-quality machines with good output rates. The “cheap-cheap” mentality is slowly disappearing and the Approach of AEC reinforces this tendency.

GTCC: How will this mind shift affect Rieckermann?

Mr. Benke: It is clearly a good thing for us.

We are offering machines with a high standard and reliable service. As a company, we can help our clients to become more competitive – to produce cheaper products with modern, more efficient machines.

GTCC: Does Rieckermann Thailand need to become more competitive, too?

Mr. Benke: The forthcoming establishment of AEC does not scare us. We have a huge advantage over our competitors from China and the ASEAN countries – we are reliable.

The Thai people trust in German quality, and we are working hard to keep this image. Our machines are durable and a good investment, and if something is broken, our technicians are available around the clock. That is a service most Asian companies do not offer.

GTCC: Rieckermann is also exporting machines from Thailand. Will this business be affected by AEC? Mr. Benke: We are mainly trading German machines within Thailand. Exporting Thai machines is just a very small additional activity of our company. However, the exported machines have the same quality standards as those traded within Thailand. Our machines and services have to be reliable; this is something that we ensure by auditing the

local machine manufacturers prior to export.

So we have no need to fear the competition.

GTCC: You have been Managing Director of Rieckermann Thailand for 14 years now.

During that time, have you ever regretted doing business in Thailand?

Mr. Benke: Never. Although there are some downsides, I always saw, and still see a huge potential for Thailand in general – especially if the export sector develops further.

GTCC: In your experience, what has been the most challenging aspect in developing business in Thailand so far?

Mr. Benke: For Rieckermann, there are two problems. We do not have a ‘big’ name, so most Thai people don’t know us. In a market that is already experiencing a shortage of skilled technicians and salespersons that is an additional hindrance, as potential employees apparently prefer to work for prestigious multinational companies. As a relatively unknown ‘brand’ we are only the second choice for potential employees. We have to put a great deal of effort into finding wellskilled workers. The second problem is foreign language skills – but that is something all our competition has to deal with, too.

http://thailand.ahk.de

48 BUSINESS BRIEFS

HÄFELE GERMANY: STILL GROWING STRONGLY ON 90TH ANNIVERSARY Established by Mr. Adolf Häfele in 1923 as a local hardware shop in Nagold, Germany, Häfele was later changed by the Häfele and Thierer families into a multinational corporation. Currently, the Häfele Group of Companies – which comprises 38 subsidiaries – is under the management of the third gener ation of the family with the name Häfele GmbH Co., KG. Due to the farsighted vision of its management and its 90 years of extensive experience, Häfele is globally recognised as a leader in the hardware and furniture fittings business sector in terms of its innovations, technology and design. Häfele has continually expanded its businesses and production bases to cover all five continents with customers in more than 150 countries.

Häfele’s business in Thailand was established in 1992, followed by the then-Häfele (Thailand) Co., Ltd. in 1994. Under the guidance of its highly-experienced management team, the company is committed to development and meeting customers’ needs. The company provides a range of premium services through its warehouse and standardised storage system, professional service team and advanced shipping service, all of which contribute to ensuring a safe, convenient and speedy operation.

Häfele Thailand is included in the list of top retailers and vendors in this country. Its distribution network operates on a country-wide basis, through the strategic establishment of six showrooms and five logistics centres.

The six showrooms include: Design Studio Bangkok, (Head Office); Design Studio Pattaya; Design Studio Hua Hin; Design Studio Bang Pho; Design Centre Phuket and Design Studio Mega Bangna.

The five logistic centres are: Logistic Centre Bangna km. 22 covering an area of 10,000 m2, which is also used as an operations centre that makes product models, carries out materials testing and has assembly

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BUSINESS BRIEFS 49

line; Distribution Centre SuratThani; Distribution Centre Khon Kaen; Distribution Centre Chiang Mai; and most recently opened Distribution Ubon Ratchathani.

Today, Häfele works hand-in-hand with trading partners in a range of business fields that include furniture manufacturers and factories, distributors, strategic planners and architects. The company is actively involved in formulating business plans thatcover production, construction projects and distribution plans. More than 50,000 items of merchandise are sold under the name of Häfele.

Apart from product variety, Häfele’s customers can be assured of unique services that respond well to their requirements in a standardised, swift and efficient manner.

Although Häfele is now 90 years old, the company has never stopped moving forward. It is continuing to expand and add value to its businesses for the benefit of its stakeholders, including customers, trading partners, shareholders and all employees as well as the Thai economy as a whole. Services are being expanded to cover all areas of Thailand while the customer base will be enlarged to support market expansion in the future. However, the success of these advances is only being made possible by the efforts and contributions being made by all parties concerned.

The Häfele slogan, “Thinking Ahead”, symbolises the promise given to all the company’s customers, trading par tner s and employees. It also represents the driving force behind Häfele’s creative and devoted striving for development and improvement in innovation and design, with the objective of achieving sustainable excellence in the hardware and furniture fittings business at the global level.

To mark the special occasion of the company’s 90th “bir thday”, Häfele (Thailand) Co., Ltd. launched a celebrator y 90-year anniversar y Häfele Germany Lucky Draw for a Mercedes Benz and 89 other prizes with a total value of more than 6.3 million baht. The draw was held on 9th December 2013 at Design Studio Sukhumvit64, to convey Häfele’s gratitude to customers, trading partners and shareholders for their support to the company. The presentation of the prizes was held on 13 December 2013 at the Logistic Centre Bangna km 22.

http://thailand.ahk.de

50 BUSINESS BRIEFS Bayer airship in New York

150 YEARS OF BAYER A MAJOR ANNIVERSARY Contributed by: Bayer Thai Co., Ltd.

150 YEARS OF BAYER: SUCCESS THROUGH INNOVATION AND CHANGE Bayer was founded 150 years ago. What started as a small but innovative dyestuffs factory is now a global enterprise with more than 110,000 employees, with sales of €39.7 billion in 2012, a presence in most countries in the world, and a brand that is well-known and well regarded. In 2012, Bayer’s capital expenditures amounted to €1.9 billion and around €3 billion was dedicated to R&D. The 150 years anniversary calls to mind tradition and continuity. While that is very true of Bayer’s long history, an important factor in Bayer’s growth for 150 years is its spirit of innovation and adaptation to ability to adapt to a changing environment. During the past 150 years, Bayer’s scientific inventions and innovations have delivered solutions that helped improve people's quality of life. This great tradition is also our commitment to the future and neatly capture in our mission “Bayer: Science For A Better Life."

WORLDWIDE ANNIVERSARY CELEBRATIONS To mark this milestone, Bayer has held a series of events and projects

UPDATE 4/2013

across the world. The events have focused on their employees, stakeholders and the public. This celebration of Bayer represents their leading status as an international company and the important role that their employees have played in ensuring Bayer’s success.

The company have also been celebrating Bayer’s ongoing efforts to improve people’s lives worldwide, with multiple stakeholders and the public joining in the celebration. The following events have taken place this year.

CELEBRATION DAY: FESTIVITIES AROUND THE WORLD All employees in the entire Bayer world celebrated the company’s 150th anniversary on June 18 with events in countries across the world, many with local flavor. The main focus of the day was an international menu created by five Bayer chefs from different countries and shared by Bayer employees everywhere.

MY BAYER STORY Bayer employees all over the world were invited to write stories about their experience at Bayer and submitted these to a dedicated intranet site called “My Bayer Story”. There were many heart-warming

BUSINESS BRIEFS 51

stories that showed the big impact that Bayer has had on the lives of their employees, and the big impact that their employees have had on Bayer.

BAYER VOLUNTEERING PROGRAMME Bayer’s Volunteering Programme granted funds to 150 current or former employees for social projects near Bayer sites that highlighted the spirit of volunteering and giving back to the community.

THE BAYER SONG

SCIENCE SYMPOSIUM Around 380 scientists from 14 countries participated in a “Science For A Better Life” symposium in Leverkusen. The intention is to strengthen and extend Bayer's partnerships and networks with universities and research institutes.

ANNIVERSARY CELEBRATION IN BAYER THAI Bayer Thai has participated enthusiastically in the company’s global events such as the Bayer Song, Bayer Story etc. We are also taking the opportunity, on this auspicious occasion, to thank our key external stakeholders. In December, Bayer Thai employees will visit stakeholders to present them with anniversary cakes as a sign of gratitude for their ongoing support, and to share their pride in the company’s 150 years of innovation in health care, agriculture and high-tech materials.

A Bayer song “A Better Life” was written to mark the 150th anniversary. Bayer employees from 50 countries have recorded the song in different styles with a variety of music vidoes.

This has been so positively received that it is now marketed externally. All proceeds will go to the United Nations Foundation programme "Global Alliance for Clean Cookstoves.”

EMPLOYEE EVENT: “WE ARE BAYER” The biggest birthday party in Bayer's history took place in the BayArena in Leverkusen at the end of June. Thousands of colleagues from all the Bayer sites in Germany celebrated "We Are Bayer!" – a once-in-alifetime experience for Bayer employees – with lots of audience participation, daring acrobatics, the largest living Bayer cross of all time and a world-class celebrity

Bayer Anniversary Tour

ANNIVERSARY TOUR “S-C-I-E-N-C-E F-O-R A B-E-T-T-E-R L-I-F-E” – the 21 letters of our mission formed the theme of an exhibition which travelled the world. Each letter stands for one aspect of Bayer’s history and mission with interactive displays; for example, “S” for “Science”, “A” for “Aspirin”, “E” for “Energy Efficient Mobility”. The anniversary tour visited 30 cities such as Mexico City, Sao Paulo, Shanghai and Ho Chi Minh City.

BAYER AIRSHIP An airship with the Bayer logo and mission statement in large lettering headed for destinations around the world such as Sydne y, Ne w Yo r k , B a rce l o n a a n d Johannesburg.

Bayer Employee Event in Leverkusen, Germany

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52 BUSINESS BRIEFS

LINDE MATERIAL HANDING (THAILAND) HOLDS OFFICIAL OPENING CEREMONY Linde Material Handling is one of the largest material handling manufacturers worldwide and number one in Europe. With its headquarters in Germany, the company has production plants in Europe, Asia and the United States. Established in Bangkok in 2012, Linde Material Handling (Thailand) Co., Ltd. offers material handling and service solutions to suite the individual needs of each customer.

Linde Material Handling (Thailand) proposes not just optimum equipment for a specific application but a total solution for its customers. Whether it is logistics advice, finance, rental or after-sales services, Linde Thailand is the natural partner in ensuring an efficient, competitive and cost-effective logistics operation.

Having moved to a new building in Pathum Thani, the company held its official opening event on the 19 November 2013. Nine monks participated in the ceremony. The date of the opening was selected as number 9 represents good luck and number 1 stands for success, thus ensuring the best foundation for a productive work environment.

The opening event was attended by many international guests who included: Mr. C. P. Queck, member of the Kion Executive Board, Chief Asia-Pacific Officer and CEO of Linde Asia-Pacific; Mr. S. C. Tee, Managing Director of Kion South Asia and Director of Linde Asia; dealers from the Asia-Pacific region; and guests from Europe.

RUWAC HOLDS GRAND OPENING OF ASIA FACTORY AND REGIONAL TRAINING CENTRE On 22 November, RUWAC Asia Ltd. invited business friends to celebrate the auspicious occasion of the Grand Opening of their new state-of-the-art, Board of Investment-promoted RUWAC factory and regional training centre at Chonburi – the first of its type in the Association of Southeast Asian Nations region.

The event was divided into two parts: the Grand Opening ceremony and a guided tour showing the conference room, showroom and production floor.

Mr. Jens Huhn, RUWAC Asia Group Managing Director, opened the ceremony by delivering a welcome address. In particular, his speech was directed at customers in Thailand in order to help them learn more about the company and its mission.

In explaining why RUWAC choose Thailand as its location Mr. Huhn said: “A nation that is on the verge of becoming an industrialised country also needs to implement effective work-safety strategies”. RUWAC, known as one of the leading manufacturers of industrial vacuum cleaners and central vacuum systems, is a member of the German-Thai Chamber of Commerce.

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BUSINESS BRIEFS 53

ESTABLISHMENT OF DAITO LANG MIRROR (THAILAND) CO., LTD.

Joint venture aims to supply rear-view mirrors to commercial vehicle manufacturers within the ASEAN region The worldwide market leader of surround vision systems for medium and heavy-duty trucks, Germany-based Mekra Lang, and Daito Press from Japan, which specialises in the production of vision systems for Japanese customer s, have strengthened their commitment to South-East Asia through the establishment of a joint venture in Pinthong Industrial Estate, Chonburi.

Having a close link to company headquarters, the joint venture is capable to handle not just production of serial parts but also development and project management for its customers.

Moreover, this technology access further enables DLM to enlarge its product portfolio, since know-how for pick-up and even passenger car mirrors is readily available.

For the official tape cutting ceremony, which took place on 28 November 2013, DLM welcomed notable guests, including embassy representatives, local industry spokespersons, an interesting mix of customers and suppliers as well as delegations from both companies' headquarters.

Both parties will hold equal shares in the newly-established joint venture named Daito Lang Mirror (Thailand) Co., Ltd. (DLM), which will be managed by Masahiko Nakamuta, who is also Managing Director of Daito Press Mfg. Co., Ltd. in Osaka.

DLM aims to produce and distribute rear-view mirror systems for all types of commercial vehicles (such as trucks, buses and off-road vehicles) both for local needs and export to other ASEAN countries. The total investment for the 2,000 m², state-of-the-art production facility amounts to Baht 140 million. In return, DLM is expected to produce annual sales of up to Baht 175 million in the long term and to employ more than 30 workers.

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54 BUSINESS BRIEFS

CONSULTANCY SESSIONS IN GERMANY During the last quarter of 2013, the German-Thai Chamber of Commerce demonstrated its strong commitment to promoting German-Thai business activities by attending sector-specific workshops in Frankfurt, Munich, Stuttgart and Mainz as well as by providing individual consultations for various German companies in different sectors.

In particular, the substantial consultancy days in Stuttgart and Munich – during which representatives of AHKs worldwide offered their economic know-how – as well as the events concerning ASEAN generated extensive feedback and revealed the growing German

interest in the international market. GTCC Deputy Executive Director Jan Immel, for example, shared his insights on the economic prospects both of Thailand and of ASEAN in general at the Wirtschaftsberatungstag ASEAN in Mainz.

In addition, the GTCC participated in the event, “Customised solutions in vehicle production and technology for Thailand, Indonesia and Malaysia”, as part of the preparations for the planned visit of a business delegation to Bangkok, Jakarta and Kuala Lumpur under the leadership of the Deputy Head of State of Baden Württemberg, Dr. Nils Schmid, in the spring of 2014.

FIRST GERMAN PAVILION AT BANGKOK INTERNATIONAL MOTOR SHOW 2014 During the past few years Thailand has become one of the most important automobile production sites in South-East Asia. This positive progress of the Thai and regional vehicular market is opening up great opportunities to German automotive suppliers.

In order to further promote this potential, an official German Pavilion is, for the first time, to be presented by the German Association of the Automotive Industry (VDA) at the Bangkok International Motor Show in 2014.

This leading automobile event in Thailand will take place for the thirty-fifth time from 26 March to 6 April 2014 at the Impact Exhibition and Convention Centre in Bangkok. It will be preceded by VIP/Press Days on 24 and 25 March 2014. Organised with the support of the Federal Ministry of Economics and Technology (BMWi), and in co-operation with the Association of the German Trade Fair Industry (AUMA), the first official German Pavilion will offer an excellent platform for presenting the latest German automotive products and making significant business contacts.

Internationaler Messe- und Ausstellungsdienst GmbH München (IMAG) was entrusted by BMWi with the German Pavilion’s implementation.

IMAG and the German-Thai Chamber of Commerce (GTCC) are inviting German companies to join the German Pavilion.

Registration deadline for participation at the German Pavilion is 10 January 2014. For further information and application documents, please contact Ms. Suvichanee Panpeng at the German-Thai Chamber of Commerce (tel: 02-670-0600, ext. 4006; fax: 02-670-0602; or email: muenchen@gtcc.org) or via Facebook at MesseMuenchenThailand.

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CHAMBER ACTIVITIES 55

WORKSHOP ON PROFESSIONAL QUALIFICATIONS AND OCCUPATIONAL STANDARDS A ver y useful workshop on “Professional qualifications and occupational/competency standards for proper ty management, logistics and printing industries” was hosted by the Thailand Professional Qualification Institute (Public Organisation) on 12 September 2013 at the Banyan Tree Bangkok. Jörg Buck, GTCC Executive Director, and other experts gave insightful presentations on this topic.

A key aspect of the event was to provide a better understanding of the role, development and implementation of professional qualifications and occupational standards, and recognition of prior competences.

The workshop provided an excellent oppor tunity for facilitating collaboration among relevant entrepreneurs, governmental agencies, and private organisations in the fields of proper ty management, logistics and printing industries.

SPIELWARENMESSE DIALOG: FEEL THE SPIRIT OF PLAY On 1 October 2013, the German-Thai Chamber of Commerce and Spielwarenmesse eG jointly hosted a press conference on “Spielwarenmesse Dialog” at the St. Regis Bangkok Hotel. The event was organised to provide detailed information to potential exhibitors, visitors and members of the media on the upcoming world’s leading toy fair, Spielwarenmesse 2014, which will take place for the sixty-fifth time between 29 January and 3 Febr uar y 2014 in Nurember g, Germany.

At Spielwarenmesse, exhibition space for baby and infant products in particular will be increased. In his remar ks at the Spielwarenmesse Dialog, Chairman of the Board of Spielwarenmesse eG, Mr. Ernst Kick, explained: “The demand from our buyers for baby and infant articles has greatly increased in recent years and is continuing to grow. We have therefore decided to extend the space in order to accommodate this development”.

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56 CHAMBER ACTIVITIES

THAI-GERMAN CONFERENCE ON SOLAR-THERMAL SOLUTIONS FOR INDUSTRIAL, COMMERCIAL SECTORS To facilitate market entry for German companies under the framework of the “renewables - Made in Germany” initiative supported by the German Federal Ministry of Economics and Technology, GTCC and GIZ organised a business trip to Thailand between 14 and 18 October 2013 for selected German companies. The business trip included a technology conference on October 15 which took place in Bangkok at the Sukosol Bangkok Hotel.

The objective of this event was to discuss state-of-the-art technology solutions for solar-thermal energy generation in the industrial and

commercial sectors. In addition to presentations by Thai and German experts on the framework conditions for doing business in Germany and Thailand, the participating companies introduced themselves and held individual discussions with interested Thai companies after the conference and during the days following the event.

Because the conference focused on how quality installations can be ensured and how performance monitoring of solar-thermal systems can be achieved, it provided close to 100 participants with a valuable opportunity to learn from German Know-how in this field.

GTCC, GIZ HOLD CONFERENCE ON ‘ENERGY EFFICIENCY IN BUILDINGS' During the conference, German experts shared their knowledge about the areas of planning and implementation of energy efficiency, and highlighted best practices for technology solutions to save energy. This gave Thai private sector companies and operators of commercial buildings looking for partners and suppliers of energy efficiency building control technology the oppor tunity to acquire valuable information and establish new business connections in this sector.

GTCC, together with GIZ, organised a conference on the topic of “Energy Efficiency in Buildings” on 29 October 2013 at the Crowne Plaza Hotel, Bangkok. The conference was attended by more than 100 participants and was part of the energy efficiency in buildings business trip to Thailand taking place from 28 Oct to 01 Nov 2013.

The conference, as part of the “Energy Efficiency – made in Germany” initiative supported by the German Federal Ministry of Economics and Technology, focused on how energy efficiency in buildings can be ensured and how relevant solutions can assist in achieving this goal.

Furthermore, the meeting was aimed at promoting and developing co-operation between companies, both Thai and German, as well as developing business opportunities in the energy efficiency industry.

UPDATE 4/2013

In addition, as part of the special focus being placed on energy efficiency in buildings, the first DGNB Certificate to be issued to a building in Thailand was awarded to Häfele GmbH for its Design Centre Building in Phuket. Häfele is a member of GTCC. “The building impressively demonstrated that aesthetic design and energy efficiency are compatible”, concluded Mr. Jan Immel, GTCC Deputy Executive Director.

The DGNB Certificate is a globally-accepted certification scheme of the highest standard.

CHAMBER ACTIVITIES 57

SITE VISIT TO SVI PRODUCTION FACILITIES A site visit to SVI Public Company Limited was organised by the German-Thai Chamber of Commerce (GTCC) on 14 November 2013. The participants were greeted by the company’s CEO, Mr. Pongsak Lothongkam, together with SVI Vice-President Mr. Ruangpoj Phakdurong, who gave an introductor y presentation about the company.

During the tour, the participants were given a detailed overview of the SVI facilities at Bangkadi Industrial Park, Pathum Thani, which is located directly north of Bangkok and is part of the Bangkok metropolis.

SVI, which is a GTCC member, was founded in 1985, is one of the largest electronic

manufacturing services firms in Asia. Covering more than 152,000 m² and comprising 45,500 m² of building space, the factory area includes three types of production buildings.

The participants gained a good insight into SVI’s production process for office automation equipment, IP cameras, and medical and laboratory equipment.

BREAKFAST TALK ON GERMAN-THAI DUAL EXCELLENCE EDUCATION PROGRAMME During the Breakfast Talk, which was attended by more than 70 guests, GTCC Executive Director Mr. Jörg Buck explained in detail the GTDEE quality standard, the programme and how companies could benefit from it. During his informative presentation, Mr. Buck highlighted the importance of a premium approach and “bringing high standards to the existing (education) system” in Thailand.

On 21 November 2013, the German-Thai Chamber of Commerce (GTCC) organised an exclusive Breakfast Talk on the German-Thai Dual Excellence Education programme (GTDEE) to inform its members and interested companies about this recent initiative, which was launched earlier this year.

There was general agreement among the participants on this issue.

Mr. Matthias Pfalz, President of BMW (Thailand) and one of the founding partner companies of GTDEE, encouraged the participants to be “committed to premium quality and to maintain the high standard”. Fur thermore, Mr. Phongsakdi Chakshuvej, Executive Vice-President of B.Grimm and GTCC Board member, emphasised the need for high-quality, job-related dual education “to train students to meet special demands”.

With the involvement of the German Embassy in Bangkok, the Thai Ministry of Education, GIZ and GTCC, together with the founding partner companies of B.Grimm, BMW (Thailand) Co., Ltd. and Robert Bosch, Ltd., GTDEE is a strongly supported initiative.

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58 CHAMBER ACTIVITIES

GERMAN, FRENCH DELICACIES DELIGHT GDL WORKSHOP PARTICIPANTS GTCC Executive Director Jörg Buck and Co-Chairman of the “Luxur y& Lifestyle” Committee Sukanya Uerchuchai explained the details of the background and objective of this year’s GDL Fair and its highlights.

During the workshop, the members of the media received interactive insights of German and French food and beverages. Par ticipants were par ticularly impressed by the food preparation demonstrations provided by “Le Cordon Bleu Dusit Culinary School”.

On 22 November, the G e r m a n - Th a i a n d Franco-Thai Chambers of Commerce (GTCC and FTCC) hosted a press conference and workshop at Le Cordon Bleu Dusit Culinary School on the German Design & Lifestyle Fair 2013 (GDL 2013), which was held concurrently with FTCC’s eleventh Bonjour French Fair from 12 to 15 December 2013 at the Queen Sirikit National Convention Centre.

Yumi Kiengsiri, Director of Marketing Communications at luxury watch distributor, Pendulum, and one of GDL 2013’s exhibitors, joined the workshop as a “watch guru”. During the event, she presented a selection of hand-crafted watches from German brand NOMOS. Together with guest celebrity, Kamala Kumpu Na Ayuthaya and other participants, she shared some useful tips and advice on how to choose a watch that matches one’s personality and lifestyle.

The workshop highlighted the fact that besides being a leading nation in industry and technology, Germany also offers high quality and luxurious design and lifestyle products that were to be presented at GDL 2013.

VISITING GERMAN ICT BUSINESS GROUP FOCUSES ON ‘CUSTOMER AND PARTNER ACQUISITION’ The German-Thai Chamber of Commerce (GTCC) organised a business initiation trip in Thailand from 25 to 29 November 2013 with the focus on “customer and partner acquisition in the ICT sector of hardware, software, consulting and other services”. The visit was part of the Ministry’s programme for small and medium-sized enterprises and supported by BMWi. As part of the visit, a conference was organised on 26 November at the Crowne Plaza Hotel, Bangkok. The event was well-attended by around 70 participants. Participating small and medium-sized German enterprises from the ICT sector also had the opportunity to present their products and services to interested members of the local private sector, government authorities and multipliers under the theme of “Innovative ICT solutions for the Thai market”.

The ICT market is one of the fastest-growing sectors of the Thai economy. Major activities such as the “Smart Thailand” project, the expansion of the broadband network and investment by the private sector are key drivers of this development. The sector’s growth is also being given impetus by the goal of making Thailand an ICT hub in the forthcoming ASEAN Economic Community that is scheduled to be launched in 2015.

UPDATE 4/2013

CHAMBER ACTIVITIES 59

FIRST AUSTRIAN-GERMAN BUSINESS LUNCHEON A MAJOR SUCCESS To strengthen the economic ties between Germany and Austria, the German-Thai Chamber of Commerce (GTCC), in cooperation with the Commercial Office of the Austrian Embassy in Bangkok, hosted the first-ever Austrian-German joint Business Communities Luncheon on 29 November 2013 at the Dusit Thani Hotel, Bangkok.

The objective of the event was to bring together the two business groups for networking discussions on areas of mutual interest or co-operation. Almost 80 German, Austrian and other nationals attended the luncheon, which was praised by GTCC

President Mr. Karl-Heinz Heckhausen as a “brilliant idea” with “fantastic results”.

After welcoming remarks by the Ambassador of Austria to Thailand, Mr. Enno Drofenik, Mr. Heckhausen, and the Ambassador of the Federal Republic of Germany to Thailand, Mr. Rolf Schulze, the participants had the oppor tunity to network in a relaxed atmosphere.

participants to facilitate the discussions.

The luncheon event again highlighted the close relationship that exists between the two neighbouring countries, even as far away as in Thailand.

Moreover, Mr. Jörg Buck, GTCC Executive Director, and Dr. Gustav Gressel, Commercial Counsellor of the Austrian Embassy’s Commercial Office, introduced all the

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60 CHAMBER ACTIVITIES

OKTOBERFEST NIGHT 2013 IN BANGKOK ENJOYED BY MORE THAN 700 GUESTS The latest annual Oktoberfest Night, which was organised by the German-Thai Chamber of Commerce (GTCC), in partnership with Etihad Airways, during 1 and 2 November 2013 at the Chatrium Hotel Riverside, Bangkok, proved to be a great success again.

The two-day event welcomed more than 700 GTCC members and friends, more than few of whom showed up in stylish dirndl and lederhosen to enjoy both nights, which were enlivened with entertainment by Anton and the Funny Guys Band that was flown in from Germany especially for the occasion.

A delicious German and international buffet dinner was available throughout the night, complemented by original Oktoberfest beer

by Paulaner. Excitement escalated as the lucky draw activity drew near with the grand prize for each night of one economy class return ticket to Europe, sponsored by Etihad Airways. The rest of the winners went home with numerous giveaways, which included dining and accommodation packages at luxurious hotels and resorts.

The celebration and giveaways were made possible by the support of all our sponsors. Special thanks go to MyWell Card and BASF (Thai) Ltd., GTCC’s Diamond and Gold sponsors, respectively.

To see the rest of the photos showing the enjoyment of the GTCC Oktoberfest Night 2013 guests, visit the GTCC Facebook page at GermanThaiChamberOfCommerce.

UPDATE 4/2013

CHAMBER ACTIVITIES 61

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62 CHAMBER ACTIVITIES

GTCC CHRISTMAS PARTY AND 500th MEMBER CELEBRATION To wrap up a very successful year, the German-Thai Chamber of Commerce (GTCC) hosted its annual Christmas Party for 2013 on 17 December at the Garden Villa of the Sukhothai Bangkok Hotel.

On this occasion, the Chamber also took the oppor tunity to celebrate achieving a membership of more than 500 members, making it one of the biggest bilateral Chambers of Commerce in Thailand as well as one of the fastest growing Chambers of Commerce.

As one of the special highlights of the night, Jörg Buck, GTCC Executive Director, presented a trophy to Master Group Corporation (Asia) Ltd., in recognition of becoming GTCC’s 500th member this year. This successful membership milestone was accomplished thanks to the commitment of the GTCC team members as well as the strong suppor t provided by GTCC members throughout the year.

The event attracted close to 400 adults and children, all of whom who enjoyed a wide selection of international dinner buffet dishes and drinks. The evening was packed with family-friendly activities that included live music, a children’s’ amusement station and a lucky draw.

The cheerful and friendly atmosphere greatly enlivened the occasion. When the festive party ended, it was an added delight to see the children with happy smiles on their faces of the children as they left to go home with special gifts from Saint Nicolas.

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CHAMBER ACTIVITIES 63

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64 CHAMBER ACTIVITIES

GERMAN DESIGN & LIFESTYLE FAIR AND BONJOUR FRENCH FAIR 2013

GERMAN DESIGN & LIFESTYLE FA I R 2 0 1 3

Germany is recognised as a global leader in industry and technology. However, most people in Thailand may be unaware it is also a nation that is proud of its high-end design and lifestyle products.

With that in mind, the German-Thai Chamber of Commerce hosted the German Design & Lifestyle Fair 2013 (GDL 2013), which was held concurrently for the first time with Franco-Thai Chamber of Commerce’s eleventh Bonjour French Fair (BBF 2013), during 12-15 December 2013 at the Queen Sirikit National Convention Centre.

The GDL Fair and BFF 2013 both proved to be a great success as they attracted more than 35,000 visitors.

The GDL Fair featured luxurious and high-quality German consumer products, including hand-crafted watches, fashion eyewear, stationery items, pastries and cold cuts.

The event provided an important platform for further strengthening co-operation with French counterparts while allowing visitors to the fairs to experience the quality and appeal of German products.

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MEMBERS’ CORNER 65

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66 MEMBERS’ CORNER

NEW GTCC MEMBERS Between 1 October and 31 December 2013, the Chamber welcomed 14 new members.

Buhlmann Thailand Ltd.

Kaiser Construction (Thailand) Co., Ltd.

65/166 20th Floor, Huaykwang, Chamnan Phenjati Business Centre, Huaykwang, Bangkok 10320, Thailand Tel: +66 (0)2 643 0235 to 8, Fax: +66 (0)2 643 0239, Website: www.buhlmann-group.com, E-mail: philipp.goergen@buhlmann-group.com

195 Empire Tower, Unit 4206, 42nd Floor, Tower 3, South Sathorn Road, Sathorn, Bangkok 10120, Thailand Tel: +66 (0)2 670 1055, Website: www.kaiserthailand.com, E-mail: zougang@kaiserthailand.com

Activities: Distributor for piping material to energy, chemical, petrochemical, shipyard and oil & gas industry

Activities: Architecture design, construction, project management, construction materials

Chamber representatives: Philipp Goergen, Anucha Detpramualpol

Chamber representatives: Hiroki Karato, Gang Zou

DMK Deutsches Milchkontor GmbH Flughafenallee 17, Neuenland, Bremen 28199, Germany Tel: +49(421) 243 2247, Fax: +49(421) 243 2488, Website: www.dmk.de, E-mail: Axel.Hampe@dmk.de Activities: Milk processing company, reliable partner to national and international customers from the food manufacturing industry, retailing and other distribution channels.

Chamber representatives: Axel Hampe, Stefanie Krawitsch

Heinrich Boemers Auf der Muggenburg 7, Bremen 28217, Germany Tel: +66(87) 978 1158, E-mail: heinrich@boemers.com

InfoBoard International Co., Ltd. Motorway 36/38 RK BIZ CENTER, Khlong Song Ton Nun, Lat Krabang, Bangkok 10520, Thailand Tel: +66 (0)2 171 7942, Website: www.infoBoard-International.com, E-mail: hinze@infoboard-international.com Activities: Software development and software distribution / sales Chamber representatives: Andreas Hinze, Ladda Sawatdee

UPDATE 4/2013

Linde Material Handling (Thailand) Co., Ltd. 19/62 Moo 10 Phahonyothin, Khlong Nueng, Khlong Luang, Pathumthani 12120, Thailand Tel: +66 (0)2 832 5999, Fax: +66 (0)2 832 5998, Website: www.linde-mh.co.th, E-mail: info@linde-mh.co.th Activities: Retail, wholesale and rental of forklifts, equipment and spare parts under the trademark of Linde. Furthermore we engage in providing service of repair and maintenance of forklifts in Thailand.

Chamber representatives: Thee Sripawatakul, Ralf Weber

M&S Telecom Co., Ltd. 75/78-79 Ocean Tower 2, 31st Floor, Soi Sukhumvit 19, Sukhumvit Road, Klongtoey Nua, Bangkok 10110, Thailand Tel: +66 (0)2 696 9594, Fax: +66 (0)2 661 6587, Website: www.matrixsim.com, E-mail: info@matrixsim.com Activities: Matrix provides you with a cost-effective SIM card to replace roaming, while retaining your Thai number. Matrix has SIMs for over 30 countries worldwide.

Chamber representatives: Natasha Roys Limcharoen, Ounyarin Matiwattanadit

MEMBERS’ CORNER 67

Navigat Energy (Thailand) Ltd.

Time Deco Corporation Ltd.

2/22 Iyara Tower, # 705, Chan Road Soi 2, Sathorn, Bangkok 10120, Thailand Tel: +66 (0)2 678 5157, Fax: +66 (0)2 678 5158, Website: www.navigat.com, E-mail: alex@navigat.com

9 Raminthra 55/8, Raminthra Road, Taraeng, Bangkhen, Bangkok 10230, Thailand Tel: +66 (0)2 347 0177, Fax: +66 (0)2 347 0178, Website: www.timedeco.co.th

Activities: Sales, service & maintenance for GE Jenbacher Gas Engines

Activities: Watch distributor

Chamber representatives: Alexander Westphal

Oryx Stainless PGI Co., Ltd. 592/1 Soi Thaiprakan 2, Theparak Road, Bangsaothong, Samutprakarn 10540, Thailand Tel: +66 (0)2 315 5208 to 9, Fax: +66 (0)2 315 5207, Website: www.oryxstainless.com, E-mail: thongprapai@oryxstainless.com Activities: Trading and supply stainless steel material Chamber representatives: Jussi Hanila, Patchara Thongprapai

Siam Pharmaceutical Co., Ltd. 171/1-2 Soi Choke Chai-Ruamnimitr, Viphavadi-Rangsit Road, Chompon, Chatuchak, Bangkok 10900, Thailand Tel: +66 (0)2 625 9532, Fax: +66(0)2 276 1543, Website: http://siam-pharmaceutical.com, E-mail: Darunee.Yindeephol@siampharmaceutical.com Activities: Distribute by wholesale, retail trade, and export pharmaceutical and healthcare products

Chamber representatives: Panu Narongchaikul, Nalin Wongmas

Wissen & Co., Ltd. Level 3801, 8th Floor, 54 BB Building, Sukhumvit 21 (Asoke), Klong Toey Nua, Bangkok 10110, Thailand Tel: +66 (0)2 259 2627, Fax: +66 (0)2 259 2630, Website: www.wissenandco.com, E-mail: wissen@csloxinfo.com Activities: Law firm Chamber representatives: Wichien Harnpraween, Prem Kiratiratanalux

Ziehl-Abegg (Thailand) Ltd. 22/15 Moo 15, Bangramard Sub-District, Talingchan, Bangkok 10170, Thailand Tel: +66(89) 813 7514, Website: www.ziehl-abegg.com, E-mail: daniel.haitzler@ziehl-abegg.com.sg Activities: Production and sales of industrial motors and fans Chamber representative: Daniel Haitzler

Chamber representatives: Vipada Cheunkarndee, JIrarat Kittikunadul

SVI Public Company Limited 142 Moo 5, Tivanon Road, Bangkadi, Pathum Thani 12000, Thailand Tel: +66 (0)2 963 9101, Fax: +66 (0)2 963 9070, Website: www.svi.co.th, E-mail: oliver@svi.co.th Activities: EMS, PCBA, turnkey box-build, system-build and design house Chamber representatives: Pongsak Lothongkam, Oliver Manfred Tillmanns

http://thailand.ahk.de

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BIOFACH

12–15 February 2014, Nürnberg BIOFACH, the world's leading trade fair for organic food, invites the sector to its 25th edition from 12–15 February 2014. Together with VIVANESS, the International Trade Fair for Natural Personal Care, BIOFACH reflects the whole variety of the global market for organic food and natural cosmetics every year.

The highlights at BIOFACH will therefore be rearranged in 2014 into the five clusters of Trends & Innovations, Generation Future, Congress, Fachhandelstreff and Worlds of Experience.

The Thai pavilion with 13 companies will occupy 108 square metres at the Biofach 2014, to present various organic products from Thailand. Exhibitors and visitors will find Trends & Innovations concentrated on the Novelty Stand, where 474 innovative and inspiring products were to be discovered at the last edition of BIOFACH (571 including the VIVANESS Novelties).

Generation Future includes the extended job market with the group of exhibitors for Training – Work – Prospects and the Careers Centre. The Organic Food Research Award is also part of this cluster.

The BIOFACH and VIVANESS Congress is being re-organised for 2014. The important

UPDATE 4/2013

aims of the re-organisation are a stronger emphasis and focus on the individual topics and forums, a reduction to some 70 individual events and even more variety and inspiration.

The Fachhandelstreff forms the central communication location for the German specialist trade.

There are five Worlds of Experience to discover at BIOFACH 2014. Experience the World of Cheese celebrated its premiere in Februar y 2013. The successful concept will now be extended and applied to olive oil, wine, fish and coffee at the event.

More than 2,400 exhibitors and 40,000 trade buyers are expected again in Nürnberg for the twenty-fifth anniversary in 2014.

Further information about the trade fair can be found online at http://www.biofach.de/en/, http://www.vivaness.de/en/ For visitor tickets or further information, please contact GTCC’s official representative for NürnbergMesse GmbH for Thailand, Ms. Tidarat Singsuphan at tel: +66 (0)2 670 0600, ext. 3003

TRADE FAIRS 69

JEWELLERY, TIMEPIECES, LIFESTYLE

14-17 February 2014, Munich

inhorgenta Munich 2014 is the perfect time: When experts come together from around the world – Vital platform for establishing expert contacts and reap the benefits of noticeably increased order volumes.

When the venue provides the perfect setting – Take advantage of the ideal environment for professional dialogue at one of the most modern trade fair venues in the World.

When visions lead to success – The key indicator of current and future trends in the jewellery and watchmaking industry.

When you are ready for future success – A good chance to present latest products and creations to an international expert audience Messe München GmbH – one of the most famous trade fair organizers in the world – proudly presents inhorgenta Europe 2014, the World’s leading international trade fair for Jewelry, Watches, Gemstones, Design and Technology which will be held from 14 to 17 February 2014 in Munich, Germany.

Don’t miss the opportunities to meet potential customers from Europe and from across the world, open up new business segments and approach the new target groups with new strategies at “inhorgenta Europe 2014", both as an exhibitor and a visitor.

For further information, please contact GTCC’s official representative for Messe München GmbH for Thailand, Ms. Suvichanee Panpang at tel: +66 (0)2 670 0600, ext. 4006. You can also follow new updates on Facebook: MesseMuenchenThailand

inhorgenta 2014 will, once again, be the important platform for presenting the latest products and collections with an assurance in increased orders and exceptional business contacts. The fair will provide a host of new ideas and fresh inspiration for the businesses.

The diverse range of exhibitors from all areas means that it offers industry professionals the best market overview in Europe. It is a must for all those who want to secure their future and lay the foundations for future success.

http://thailand.ahk.de

70 TRADE FAIRS

SPIELWARENMESSE 2014

29 January-3 February 2014, Nuremberg

Spielwarenmesse, the leading international fair for toys, hobbies and leisure, is organised by the fair and marketing services provider Spielwarenmesse eG. The trade fair creates a comprehensive communication and ordering platform for 2,700 national and international manufacturers. The presentation of new products and the extensive industry overview provide a valuable pool of information for annual market orientation for 72,500 buyers and toy traders from more than 100 nations.

The New Exhibitor Centre will move to the newly built hall 3A for the coming Spielwarenmesse from 29 January to 3 February 2014, which marks the official opening of the new hall.

Some 60 national and international exhibitors who have never exhibited at Spielwarenmesse before present their products in the New Exhibitor Centre. Here traders find new business contacts and product ideas for all toy segments in the shortest possible time.

More than 300 manufacturers from a total of around 2,700 exhibitors will exhibit for the first time at Spielwarenmesse 2014.

Further to this, a Thai Pavilion will be set up by the Thai Toy Association to present Thai toy trends and innovations.

More information about the New Exhibitor Centre and all its exhibitors is available at www.toyfair.de/highlights/new-exhibitor-center or follow new updates on the fair on Facebook: Spielwarenmesse For further information, please contact GTCC’s official representative for Spielwarenmesse eG for Thailand, Ms. Suvichanee Panpeng at tel: +66 (0)2 670 0600, ext. 4006

UPDATE 4/2013

TRADE FAIRS 71

INTERNATIONAL GREEN WEEK BERLIN 17-26 January 2014, Berlin Established in 1926, International Green Week (IGW) is taking place for the 79th time in 2014. The IGW is a one-of-a-kind international exhibition for the food, agricultural and horticultural industries. At the same time, the IGW is the point of origin for the Global Forum for Food and Agriculture (GFFA) with more than 80 depar tmental ministers.

Producers from all over the world come to IGW to test market food and luxury items and reinforce their brand image. Following consumer trends, regional sourcing plays an increasingly impor tant role. Renewable resources, organic agricultural and products, Fair Trade, rural development and gardening continue to gain importance at International Green Week.

The IGW also features commercial and non-commercial agricultural, forestry, and landscaping exhibits. Changing annual themes typically include such topics as renewable

resources or scientific livestock breeding and production. These trade show elements are of particular interest to those involved in the developing markets of central and eastern Europe.

The IGW 2013 attracted 1,630 exhibitors from 67 countries as well as more than 400,000 visitors. At 113 euros, consumer spending per head was higher than in 2012, with exhibitors taking in around 46 million euros. The IGW 2013 was also attended by more than 100,000 trade visitors.

The Thai Pavilion, with support of the Royal Thai Embassy in Berlin, will occupy 250 square metres at the IGW 2014 to present various food and agricultural products from Thailand.

The IGW features a vast selection of products: International foods and luxury items Beer, wine and spirits Seafood Agricultural and horticultural machinery and equipment Seeds Breeding stock Hunting and fishing supplies

Fresh produce of all types Meats and sausages Teas, herbs and spices Kitchen appliances and fixtures an household items Greenhouses and gardening supplies Pets

The previous IGW supporting programme was extremely comprehensive with more than 300 forums, seminars, conferences and committee meetings. Many of the events sponsored by agricultural and food industry commissions extend over a period of several days.

Professional events: Highlights included the 6th International Agricultural Ministers’ Conference in conjunction with Berlin's 5th Agricultural Ministers’ Summit. The biggest events were the 5th International Agricultural and Food Industry Forum, the 6th Future Forum for Rural Development and the Biofuel Congress. In terms of agricultural policy, the importance of the exhibition is clearly demonstrated by the presence of 200 foreign ministers and state secretaries in addition to prime ministers, ministers and state secretaries from Germany. The Fresh Meat Forum professional seminar will once again focus on the latest industry issues next year.

Take part and take advantage at International Green Week 2014. More details are available on the internet at http://www.gruenewoche.de/en/ For visitor tickets or further information, please contact GTCC’s official representative for Messe Berlin GmbH for Thailand, Ms. Patamaporn Wasuwat at tel: +66 (0)2 670 0600, ext. 4010.

http://thailand.ahk.de

72 TRADE FAIRS

HANNOVER MESSE – GET NEW TECHNOLOGY FIRST 7–11 April 2014, Hannover

flagship fairs focusing on core areas of industrial technology: industrial automation, energy, MobiliTec, digital factory, industrial supply, IndustrialGreenTec, and research and technology. In addition, the upcoming event will place a strong emphasis on industrial automation and IT, energy and environmental technologies, industrial subcontracting, production engineering and services, and research and development.

The world’s leading trade fair for industrial technology is staged annually in Hannover, Germany. The next HANNOVER MESSE will run from 7 to 11 April 2014 and feature the Netherlands as its official Partner Country. HANNOVER MESSE 2014 will comprise seven

According to Marc Siemering, HANNOVER MESSE Senior VicePresident, it is already clear that “the many new and innovative products and system solutions will generate further discussion, and HANNOVER MESSE with its comprehensive energy sector portfolio is the perfect place for this to happen”. Bringing together all important players from all over the world as well as international exhibitors and visitors, the trade fair provides companies as well as visitors with an excellent platform for making contacts in industry, the greatest possible overview of the market and a look at the development strategies of leading international and domestic companies.

THE WORLD’S LEADING EVENT FOR THE DIGITAL ECONOMY 10-14 March 2014, Hannover The hottest megatrends in the IT sector, a global hub for mind-sharing as well as knowledge transfer and industry experts at the right place and time. Only one exhibition for information technology and only one conference for professionals does it all: CeBIT.

top-level manager. Sixty per cent of the visiting professionals from over 100 countries said they were not planning to attend any other IT event in 2013. The next CeBIT will take place from 10 to 14 March 2014.

Every year it brings the “who is who” in the IT business together in Hannover for a unique exhibition and conference. CeBIT is the world’s leading IT business event with a clear focus on business and keynote themes oriented to markets and visitor groups. CeBIT’s topics in 2014 are being reassigned to eight overall clusters chosen to reflect the market as viewed by the decision-makers involved in today’s digital business processes: Enterprise Resource Planning and Data Analysis, Enterprise Content Management, Web and Mobile Solutions, Research and Innovation, IT Services, IT Infrastructure and Data Centres, Security, Communication and Networks.

In recent years, CeBIT had steadily strengthened its position as the world’s leading IT event for the B2B sector. The percentage of trade visitors at the fair has risen continuously, reaching an unprecedented 82 per cent in 2013. Every third trade visitor at this year’s fair was a For visitor tickets or further information on both Fairs, please contact GTCC’s official representative for Deutsche Messe for Thailand at tel: +66 (0)2 670 0600 or e-mail: info@gtcc.org

UPDATE 4/2013

Organized by:

In Partnership with:

Thank You to All Our Sponsors who made the GTCC Oktoberfest Night 2013 a big success!

Gold Sponsor:

Diamond Sponsor:

Silver Sponsors:

Bronze Sponsors:

In-kind Sponsors: