Thailand: State to purchase surplus pineapple production
Money is being issued to the Measures and Policies to Assist Agriculturists Fund to buy the surplus amount from producers at a baht per kg. There will be a limit of 8 tonnes per producer, said Soopachai Barnpubtong, deputy permanent secretary for agriculture.
The payment is lower than the average ordinary payment - around 5 baht per kg, however, growers agree that it is an acceptable amount, especially considering the state of the industry this year.
If the over supply were not removed from the market the price of pineapple could driop to as low as 3 baht per kg, as a result og over harvesting last year.
Mr Soopachai, also chairman of the subcommittee to grow the pineapple industry, said the government's purchase will run from April 1 to June 30 in 20 pineapple-growing provinces.
Under the plan, each province may set up plans to manage the surplus pineapple. Prachuap Khiri Khan uses the fruit as a raw material blend for animal feed in the dairy industry.
The subcommittee also approved a request from the pineapple industry to extend a state low interest loan programme for a further six months, until the end of November.
The Bank for Agriculture and Agricultural Cooperatives loans funds for producers to buy pineapples for at least four baht per kg to manufacture either canned pineapple or pineapple juice. The government subsidises 3% of the interest from the 1 billion baht in loans.
The subcommittee believes such financial assistance is still necessary given that manufacturers have to carry such a large volume of stock due to the stagnant export market.
The Thai Food Processors' Association (TFPA) reported the global slowdown could result in a 20% decline in Thailand's pineapple product exports this year.
Last year, the industry shipped out 150,000 tonnes of juice and 580,000 tonnes of canned pineapple.
Source: www.bangkokpost.com
