Thai Food Ventures Make Good Use of Loans.

Byline: Srisamorn Phoosuphanusorn

Sep. 5--While the global economic downturn has dealt a heavy blow to the export sector, the food industry continues to grow steadily, according to the Industrial Finance Corporation of Thailand.

"Whatever the state of economy, people have to eat," said IFCT president Anothai Techamontrikul, adding that food ventures represented nearly 25 percent of all lending made by the agency to small businesses this year.

As of the end of August, the IFCT had approved loans worth 10 billion baht to SMEs. Of the total, 2.2 billion was lent to food and beverage manufacturers. This year, he said, the IFCT targeted another 15 billion baht in loans to small and medium-sized enterprises.

Among its clients is C&A Products Co, a medium-sized producer of coconut products under the A-Tip brand. The 30-million-baht loan it received from the IFCT will be used to expand its Ratchaburi plant.

"Our sales are expected to jump this year by 25 percent to 300 million baht, thanks to rising demand for coconut products," said managing director Worawat Chinpinkyo.

The company's sales to date are up by 10 percent year-on-year. Coconut products represent 80 percent of its total revenue. The remainder comes from sales of seasonal fruit juices and a catering business. Eighty percent of its production is exported.