Agri Developments Thailand, a private alternative asset company specializing in the agricultural and agribusiness industry, has partnered with a fully established mature mango plantation in Chiang Mai, Northern Thailand.
The partnership forms part of Agri Developments’ plans to further develop the 60hasite to optimize existing operations and improve yields and quality.
Currently, the site in Chiang Mai produces several varieties of mangos including Honey Mango (Nam Dok Mai), Black Gold (Tong Dam), and Sticky Rice Mango (Ok Rhong Damnoen).
Agri Developments also announced it will also be developing its domestic and overseas distribution networks.
'Our expansion in Thailand makes sense at a time like this. Covid-19 has disrupted distribution networks and operations throughout the country resulting in certain strategic opportunities,' explained Frans van Egeraat, chief executive of Agri Developments.
'Our strategy in Thailand is very different to our mango development in the Philippines. Thailand, unlike the Philippines, has a mature, established market that has exported its mangos since the early 1980s
“As a result, the opportunity in Thailand lies in incremental operational improvements and making use of our established distribution networks rather than any increase in its mango demand.
'Our Philippines development, on the other hand, aims at supplying a very different mango variety that is in extremely high demand, revered internationally and yet unavailable on export markets due to limited supply.' he added.
Van Egeraat emphasized Agri Developments' priority remains the development in the Philippines and to its clients there. He said prices for mangos from the Philippines cost over two times more in certain markets and that the company is commited to capturing this higher value market.
The Department of Agriculture of the Philippines has actively promoted the sector abroad which has paved the way for further investment and accessibility for the company.
Agri Developments said its priority will always be to focus on niche, high growth sectors in order to maximize value for itself and all its clients.
Thailand has been one of the top three mango fruit producers and exporters for decades while the Philippines has only recently started to develop its market.
Thailand produces approximately 3m tonnes of mango annually. Agri Developments said it is seeking to drive growth in Thailand by further developing distribution networks, which will ultimately come down to streamlining operations and improving productivity.