Booming businesses in Thailand you wouldn't think about

[Brunolem]

There are some businesses which are doing very well in Thailand, that few Westerners would think about, because they are not exactly mainstream here, and even less in their country of origin.

 

Let's start with the first one, ice...not ice cream, just frozen water...

 

Since the days of Bruce Lee working in a Thai ice factory, in the movie Big Boss, one could think that things have changed a lot, and that most Thai people today produce their own ice.

 

But they don't, especially in rural areas where ice is still delivered in bulk in each and every village, market and other places.

 

Yet, how much money can you make by selling ice, you ask?

 

Well, a lot by the look of things.

 

A few kilometers from our village, in the middle of nowhere, a top of the line ice factory was built some years ago, in order to supply the multiple villages scattered around.

 

Today, it operates more than half a dozen large refrigerated trucks, and next to the owner's house, on site, are parked the BMW and Range Rover, indispensable signs of success.

 

Before closing this chapter, I must add that my area is probably one of the poorest of Isaan, where people pay mostly with coins, especially with one baht coins...which would confirm the saying that sometimes "small streams make big rivers".

 

The other booming business is trucking earth!

 

Roads in Isaan are constantly crisscrossed by double dump trucks moving earth from one place to another.

This (dirty) activity has been going on for years and is only increasing with time.

It is as if, after having spent the previous century destroying the forests, then digging the ground to create paddyfields, the locals are now busy filling up their holes to do something else (keynesian economics at its best!).

 

Even inside the villages, trucks are constantly delivering earth during the dry season, to families looking to replace what was lost by erosion during the previous rain season...

 

I have tried again and again to explain them that they need to grow something because only roots can keep the earth from being taken away by the heavy rain...yet it seems that they prefer to throw away money year after year rather than going into the trouble of growing grass or whatever...all the best for the truckers...

 

If you have noticed other kinds of "out of the mainstream" businesses doing very well, please feel free to share...

 

 

 

[bomber]

beer bar in pattaya,you cannot fail

[CharlieH]

Troll remark removed.

[8OA8]

http://www.bbc.com/capital/story/20160318-why-is-this-british-company-selling-ice-to-swedes

[Guderian]

I’m surprised nobody has started a company here growing farang-style button and portobello mushrooms. The Malaysians have no problem growing them judging by the imports available in the likes of Makro and Foodland, so why not the Thais? They love mushrooms and my GF is very fond of the farang versions. In fact I’ve got orders to visit Makro tomorrow and get a half kilo of button mushrooms for her. With high prices you’d think the profit margin would be decent, so why has nobody started growing them here?

[Jingthing]

A mystery to me is why no Thai company has tried to locally produce and market natural puffed rice as a healthy breakfast cereal. You can buy a bag of the American product for about 109 baht. Obviously ridiculously expensive. Local producers could do it much cheaper but of course they would ruin it with sugar. Recently I bought the American product here on a two for one and I noticed that the Thai clerks were utterly fascinated at the product. They were examining it and talking about it. They could see it was rice, they could see it was imported, their minds seemed to blown that there was imported rice for sale in rice mecca Thailand. See my point? 

 

• 

Edited September 8, 2018 by Jingthing

[Lungstib]

9 minutes ago, Jingthing said:

A mystery to me is why no Thai company has tried to locally produce and market natural puffed rice as a healthy breakfast cereal.

My wife shops mostly at the very local village market up here near Tha Ton. for a couple of years she has occasionally been coming home with the inevitable plastic bag, inside two circular flat puffed rice 'discs' about 8 inches dia. I keep the bag closed, crush up the discs until its broken bits and put a handful on my fruit and muesli in the morning. Its not even sugared, quite a feat here where most kanom is highly sweetened.

[Jingthing]

6 minutes ago, Lungstib said:

My wife shops mostly at the very local village market up here near Tha Ton. for a couple of years she has occasionally been coming home with the inevitable plastic bag, inside two circular flat puffed rice 'discs' about 8 inches dia. I keep the bag closed, crush up the discs until its broken bits and put a handful on my fruit and muesli in the morning. Its not even sugared, quite a feat here where most kanom is highly sweetened.

Wow. I've never seen such a product. Of course I've seen the sweetened dried rice disks lots of places.

 

I realize my suggestion isn't realistic for most of the Thai market that strongly prefers such things to be heavily sugared. 

Edited September 8, 2018 by Jingthing

[Guest]

On 9/6/2018 at 2:21 PM, Brunolem said:

Let's start with the first one, ice...not ice cream, just frozen water...

I got curious, how much it costs to cool +30C water to -20C

 

Cooling 1 litre of water 30C -> 0C : Energy required: 30 kcal = 126kJ

Freezing 1 kg of water : Energy required: 333kJ

Cooling 1 kg of ice from 0C to -20C : Energy required 42kJ

 

Total energy used for 1 litre / 1 kg of water: 500 KJ = 0.14 kWh

 

Let's assume the cooling system is 50% efficient. Therefore total energy consumption would be 0.3kWh/kg, with price of 5 baht/kWh, freesing water would cost 1.5 baht / kg.

 

100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets? 

[Brunolem]

35 minutes ago, oilinki said:

I got curious, how much it costs to cool +30C water to -20C

 

Cooling 1 litre of water 30C -> 0C : Energy required: 30 kcal = 126kJ

Freezing 1 kg of water : Energy required: 333kJ

Cooling 1 kg of ice from 0C to -20C : Energy required 42kJ

 

Total energy used for 1 litre / 1 kg of water: 500 KJ = 0.14 kWh

 

Let's assume the cooling system is 50% efficient. Therefore total energy consumption would be 0.3kWh/kg, with price of 5 baht/kWh, freesing water would cost 1.5 baht / kg.

 

100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets? 

Interesting calculation.

Of course, this is only the direct production cost.

To that, you have to add the depreciation and maintenance of the trucks and machinery...AND the gas for the refrigerated trucks, because they cover a lot of kilometers all day long!

 

I am not counting the cost of the workers because it has become marginal since Bruce Lee stopped working for them...

 

Now, I can answer your question and let you finish the calculations: a bag weighing 17-18 kg is sold at 40 baht...

 

 

[bankruatsteve]

45 minutes ago, oilinki said:

I got curious, how much it costs to cool +30C water to -20C

 

Cooling 1 litre of water 30C -> 0C : Energy required: 30 kcal = 126kJ

Freezing 1 kg of water : Energy required: 333kJ

Cooling 1 kg of ice from 0C to -20C : Energy required 42kJ

 

Total energy used for 1 litre / 1 kg of water: 500 KJ = 0.14 kWh

 

Let's assume the cooling system is 50% efficient. Therefore total energy consumption would be 0.3kWh/kg, with price of 5 baht/kWh, freesing water would cost 1.5 baht / kg.

 

100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets? 

Don't forget the cost of the (purified) water.

[atyclb]

1 hour ago, oilinki said:

I got curious, how much it costs to cool +30C water to -20C

 

Cooling 1 litre of water 30C -> 0C : Energy required: 30 kcal = 126kJ

Freezing 1 kg of water : Energy required: 333kJ

Cooling 1 kg of ice from 0C to -20C : Energy required 42kJ

 

Total energy used for 1 litre / 1 kg of water: 500 KJ = 0.14 kWh

 

Let's assume the cooling system is 50% efficient. Therefore total energy consumption would be 0.3kWh/kg, with price of 5 baht/kWh, freesing water would cost 1.5 baht / kg.

 

100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets? 

 

 

 

cool.. feel like being back in physics class

[Srinivas]

1 hour ago, Jingthing said:

A mystery to me is why no Thai company has tried to locally produce and market natural puffed rice as a healthy breakfast cereal. You can buy a bag of the American product for about 109 baht. Obviously ridiculously expensive. Local producers could do it much cheaper but of course they would ruin it with sugar. Recently I bought the American product here on a two for one and I noticed that the Thai clerks were utterly fascinated at the product. They were examining it and talking about it. They could see it was rice, they could see it was imported, their minds seemed to blown that there was imported rice for sale in rice mecca Thailand. See my point? 

 

siam fine foods makes it .

[Jingthing]

4 minutes ago, Srinivas said:

1 hour ago, Jingthing said:

A mystery to me is why no Thai company has tried to locally produce and market natural puffed rice as a healthy breakfast cereal. You can buy a bag of the American product for about 109 baht. Obviously ridiculously expensive. Local producers could do it much cheaper but of course they would ruin it with sugar. Recently I bought the American product here on a two for one and I noticed that the Thai clerks were utterly fascinated at the product. They were examining it and talking about it. They could see it was rice, they could see it was imported, their minds seemed to blown that there was imported rice for sale in rice mecca Thailand. See my point? 

 

siam fine foods makes it .

I don't see it here:

http://www.siamfinefoods.com/

[Srinivas]

3 minutes ago, Jingthing said:

I don't see it here:

http://www.siamfinefoods.

[Jingthing]

Could you link directly to the product on their site please? 

[Srinivas]

9 minutes ago, Jingthing said:

Could you link directly to the product on their site please?

10 minutes ago, Jingthing said:

Could you link directly to the product on their site please? 

try an indian grocer off siam rd. might carry puffed rice as its common in india.

 

[Srinivas]

18 minutes ago, Jingthing said:

Could you link directly to the product on their site please? 

sorry that pic i posted is an export product.

[KMartinHandyman]

When my wife wins a ฿20 million lottery I’m having her reinvest in a miniature golf course here in our little city. She enjoys playing and we look for a course in most locations when we travel the US.
Ultimately I imagine it’ll become my private course after the novelty wears off like most great new business ideas in Thailand. Stick to noodles and ฿20 plastics shops if you’re looking for longevity here.

[1FinickyOne]

1 hour ago, Brunolem said:

Interesting calculation.

Of course, this is only the direct production cost.

To that, you have to add the depreciation and maintenance of the trucks and machinery...AND the gas for the refrigerated trucks, because they cover a lot of kilometers all day long!

 

I am not counting the cost of the workers because it has become marginal since Bruce Lee stopped working for them...

 

Now, I can answer your question and let you finish the calculations: a bag weighing 17-18 kg is sold at 40 baht...

 

 

That doesn't look like much profit to be had... but, maybe the fancy cars came from another income source - I don't think that the fact that someone has signs of riches can be directly attributed to the proceeds from a current business... the ice business may be a side line set up for a family member and the real money came from...

 

[watcharacters]

1 hour ago, bankruatsteve said:

Don't forget the cost of the (purified) water.

 

Don't the ice companies purify the water on site?

 

[Guest]

2 minutes ago, watcharacters said:

 

Don't the ice companies purify the water on site?

 

Probably, but reverse osmosis also requires energy. While bottled water on 20 liter tanks costs in Phuket 13 baht, I'd questimate the production price is perhaps 5 baht per 20 liters, therefore 25 satang per litre. 

 

The original calculation was only about energy requirements. Freezing large amounts of water is probably more efficient than 50%. But then we need to add more costs for the equipment, facilities, salaries, loan interests etc. 

 

For people who do the ice in their homes, if the freezer is in air conditioned room, the electricity costs triple as the freezer heats the room.  

[baansgr]

Any business can be successful with the right staff, business plan and marketing, however in Thailand foreigners not being able to control a business is why so many fail. Sad but true. 

[watcharacters]

1 minute ago, baansgr said:

Any business can be successful with the right staff, business plan and marketing, however in Thailand foreigners not being able to control a business is why so many fail. Sad but true. 

 

Surely that's the goal of the government and country as a whole.

 

[thaiguzzi]

On ‎9‎/‎6‎/‎2018 at 2:21 PM, Brunolem said:

, and next to the owner's house, on site, are parked the BMW and Range Rover, indispensable signs of success.

Don't be so sure these are from the proceeds of an "ice" factory.

There are a lot of businesses here and in Laos where everything is not what it seems. A helluva lot of unexplained wealth and basically money laundering.

Fair chance their money is not only coming from that type of "ice" if you know what I mean.

Wink wink. Say no more.

In Laos it is even more blatant.

In my own market town, there are a few businesses run by one family, where the matriarch has done serious time for large scale meth dealing. The son runs a big Merc, a Porsche Cayenne, Mrs has a matching Merc, House & property is like something out of Dallas.

All from a small green grocers and family mart? Nah.

Edit.

And the red soil stuff with the macro (excavator) and a few ten wheeler trucks. You aint gonna get rich doing that either, I know a few old boys involved in that game. It's high turnover, high exes, low profit margins, but doable if the trucks are out on the road 6 days a week 10 hours a day.

 

Edited September 8, 2018 by thaiguzzi

[pumpjack]

7 hours ago, Guderian said:

I’m surprised nobody has started a company here growing farang-style button and portobello mushrooms. The Malaysians have no problem growing them judging by the imports available in the likes of Makro and Foodland, so why not the Thais? They love mushrooms and my GF is very fond of the farang versions. In fact I’ve got orders to visit Makro tomorrow and get a half kilo of button mushrooms for her. With high prices you’d think the profit margin would be decent, so why has nobody started growing them here?

 

seems like a lot of money to get started along with a major headache ......can anyone add ??  

 i know the wife and family love mushrooms !!!!

 

 

[greenmonkey]

One thing I have learnt here in Thailand (and I'm sure it is relevant in many countries) is that a flash car certainly does not mean wealth! Through my wife I know 3 Benz/BMW owners all with land and nice big houses. I have since learnt through the grapevine that 2 of them are massively in debt (to the tune of several million Baht) and the other is completely broke. It would seem it's all about 'Keeping up Appearances'!!! #Don't judge a book by its cover

[FritsSikkink]

9 hours ago, oilinki said:

I got curious, how much it costs to cool +30C water to -20C

 

Cooling 1 litre of water 30C -> 0C : Energy required: 30 kcal = 126kJ

Freezing 1 kg of water : Energy required: 333kJ

Cooling 1 kg of ice from 0C to -20C : Energy required 42kJ

 

Total energy used for 1 litre / 1 kg of water: 500 KJ = 0.14 kWh

 

Let's assume the cooling system is 50% efficient. Therefore total energy consumption would be 0.3kWh/kg, with price of 5 baht/kWh, freesing water would cost 1.5 baht / kg.

 

100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets? 

So you produced it, how much will it cost to:

buy the equipment to freeze it

to put the equipment in a factory

to build the factory

to lease/buy the land

to setup a business, lawyer, accountant

store the ice

to buy the trucks to deliver the ice

to pay the people who work for you

to pay for licenses

to pay taxes

to find customers

 

So all in all, "100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets?" is a joke. 

 

 

 

 

[Guest]

5 minutes ago, FritsSikkink said:

So you produced it, how much will it cost to:

buy the equipment to freeze it

to put the equipment in a factory

to build the factory

to lease/buy the land

to setup a business, lawyer, accountant

store the ice

to buy the trucks to deliver the ice

to pay the people who work for you

to pay for licenses

to pay taxes

to find customers

 

So all in all, "100 KG ice cube would then cost about 150 baht to produce. How much those sell in the markets?" is a joke. 

I calculated how much energy was required to turn +30C water to -20C ice and how much it might cost out of my personal curiosity to understand the world, we are living in, works. All that was displayed by the numbers on that post. I also used guestimate of the proficiency of the freezing system etc. as I don't have real data available. 

 

Is there something wrong with that? If my calculations were wrong, feel free to correct me. I don't mind being wrong as long as I learn something new on the way. I'm actually happy if you can teach me something I don't know. That's the only way I gain something from a conversation. 

 

Related to this. My favourite science show, The Naked Scientists forum had a question about freezing seawater ice and why the ice doesn't have salt or other impurities within it. 

 

There might not be a need to purify the water, which is going to be made ice after all. 

 

Check this out: https://www.thenakedscientists.com/forum/index.php?topic=68138.0

[gaff]

10 hours ago, Guderian said:

I’m surprised nobody has started a company here growing farang-style button and portobello mushrooms. The Malaysians have no problem growing them judging by the imports available in the likes of Makro and Foodland, so why not the Thais? They love mushrooms and my GF is very fond of the farang versions. In fact I’ve got orders to visit Makro tomorrow and get a half kilo of button mushrooms for her. With high prices you’d think the profit margin would be decent, so why has nobody started growing them here?

 

 

Do you mean the white mushrooms that they call CHAMPIGNON ?

 

They are sold everywhere...