Siam Makro Public Company Limited, in response to the Department of Internal Trade’s plea to support Thai fruit farmers, has pledged to increase its purchase from the Agricultural Cooperatives this year. Plus, in order to sustainably tackle the oversupply of fruits in the market, Siam Makro plans to instruct farmers on “Marketing before Producing” practice while also launching nationwide promotion campaign to boost sale of seasonal fruits.
Mrs. Siriporn Dechsingha, Chief Communications Officer, Siam Makro PCL, revealed that “For the past 30 years of operation in Thailand, Makro, aware that farmers play an important role to the country’s economy, has continually supported local farmers by encouraging and instructing them to produce high-quality healthy agricultural goods of qualified standards. In 2018, Makro procured over 115,000 tons of goods from farmers, as well as agricultural operatives, throughout the country; and intended to buy an even larger number this year.”
“Oversupply of seasonal fruits is a recurring problem that happens almost every year during this period of time. With the large surplus of goods, the prices inevitably plummeted. In compliance with the Department of Internal Trade, Makro has agreed to purchase more seasonal fruits this year or approximately 4,800 tons of rambutan, mangosteen, longkong, longan, and durian; a whopping increase of 40% compared to 3,420 tons in 2018. Furthermore, Makro has always emphasized on the importance of the quality and the hygiene of the products. And in this regards, Makro works closely with local farmers to educate and assist them on market mechanism and the idea of ‘Marketing before Producing’ planning.”
However, between July and October 2019, the surplus of fruits seems to be much bigger than previously anticipated. In the north, the overflow of longan is over 50% more than the expected amount. While in the south, there is a 34% increase of durian, rambutan, mangosteen, and longkong, totaling roughly 648,088 tons. Mangosteen, in particular, is estimated to have an extra surplus of 30-60% during the months of July to August. On the other hand, longkong will most likely flood the market in September to October.
Mrs. Siriporn further added, “For Makro, the sustainable solution to this recurring situation is to create a balance between demand and supply of agricultural goods. In addition to boosting the domestic consumption of seasonal products, farmers should also grow different types of fruit to serve the market’s demand. To guide local farmers on ‘Marketing before Producing’ concept, Makro deployed a team of experts to instruct them and also expanded its purchase channels through agricultural cooperative network.”
In addition, Makro is also launching special promotions to increase sales of seasonal fruits at every Makro Store; not only can this campaign encourage consumers to eat more seasonal produce, but it can also support local farmers all over the country.
