Issue 15

Already the number one exporter in the region, Thailand’s sugar industry is using innovation to secure its global market position.

Worrawat Sriyook, Vice-President Marketing Strategy of Mitr Phol Sugar Corporation

Mention innovation and your mind may well turn to modern equipment, gadgets or high tech products. But it is needed in a host of more traditional industries and agro-industries in order to boost competitiveness.

Sugar is one such industry. Export revenues in 2013 amounted to US$2.8 billion, placing Thailand second globally behind Brazil. Key export countries include Japan, South Korea, China and ASEAN. Faced with the dual challenge of oversupply and low prices, producers are forced to explore possible opportunities to add value to their products. In many countries competitiveness is maintained through diversification, for example dry sugar in Belgium or sugar being transformed into flour substitute in Australia. Thailand’s sugar industry maintains its market position through higher productivity.

“We focus on creating innovation and developing cane growing technology to cut production costs as well as enhance environmental friendly procedures,” says Worrawat Sriyook, Vice-President Marketing Strategy of Mitr Phol Sugar Corporation, one of Thailand’s leading sugar millers. “Several innovations were created to lead to new business opportunities and sustainable social development.”

Research and innovation is essential in order to meet international standards and expand business opportunities. “Our innovative product is Mitr Phol Syrup made from 100% cane syrup to enhance beverage and cooking as well as help time and energy saving,” he adds.

This product won The Best Value Creation Award 2012: Gold on Ready to Eat and Food Ingredient from Creative Food Product Contest 2010 organised by the Department of Export Promotion, the forerunner to the DITP. Mitr Phol has also developed a range of flavoured and aromatic syrups from natural cane sugar. “Now we have caramel, hazelnut, vanilla and fruit flavours such as lychee, strawberry, blueberry and blue citrus,” says Sriyook.

Thailand’s demand is growing, up from an annual 23kg per person in 1994 to 30kg, according to Sriyook while adding that the “numbers do not reflect the real consumption per person” as they include industry and export sectors.

“However, compared to developed countries such as Europe (38 kg per person per year) and the US (37 kg per person per year), Thailand is still not too high,” Sriyook adds. “Some research suggests that the sugar consumption rate is related to a country’s growth rate.”

But it is not just domestically that Mitr Phol is looking to expand. The advent of the ASEAN Economic Community (AEC) in 2015 provides great opportunities for many industries, and once more sugar is no exception to this rule. “Normally, sugar is one of the main ingredients in both food and beverages in countries all over the world,” says Sriyook. One thing is for sure, the future is looking sweet for both Mitr Phol and the Thai sugar industry.

Words by Natthinee Ratanaprasidhi