Rice And Garlic Trade

[allacting]

Hello Everyone!!!!

I am new to this forum and I would appreciate some much needed advice on both the garlic and rice trade. I am organizing my entire sub-district (13 villages) so that we can lump our rice and garlic product together for direct export. We have about 1,500 tons of sticky rice and 1,000 tons of garlic. My first question is this: If I am willing to pay for the shipping, packaging, etc. costs of rice and garlic, will the government or middlemen try to block me? I read some on other forums that the Chinese Thai in Issan dominate the trade in Issan (I live in the North) making it really difficult to do business. My second question is as follows: Is there anyone who knows the details of the garlic trade in Thailand because finding information has been difficult? The only thing I know is that Thailand signed a free trade agreement with China that apparently has ruined the local garlic industry. I am interested in seeing if it is possible to ship the garlic overseas.

Thanks in advance for your kind help!!!!!!!!!!!!!!!!!

Quilen

Edited June 9, 2008 by allacting

[fruity]

If I were you I'd forget about it!

Hello Everyone!!!!

I am new to this forum and I would appreciate some much needed advice on both the garlic and rice trade. I am organizing my entire sub-district (13 villages) so that we can lump our rice and garlic product together for direct export. We have about 1,500 tons of sticky rice and 1,000 tons of garlic. My first question is this: If I am willing to pay for the shipping, packaging, etc. costs of rice and garlic, will the government or middlemen try to block me? I read some on other forums that the Chinese Thai in Issan dominate the trade in Issan (I live in the North) making it really difficult to do business. My second question is as follows: Is there anyone who knows the details of the garlic trade in Thailand because finding information has been difficult? The only thing I know is that Thailand signed a free trade agreement with China that apparently has ruined the local garlic industry. I am interested in seeing if it is possible to ship the garlic overseas.

Thanks in advance for your kind help!!!!!!!!!!!!!!!!!

Quilen

[ozzydom]

A very noble idea,but have you really investigated all the ramifications of trying to export direct.

First you need export permits ,health clearances, a customer with a firm order, terms of payment,shipping details , insurance etc etc.

You are limited in your market as sticky rice is grown mainly for the local market.

I doubt that the farmers are going to want to take the risk and wait for their payment and if any thing goes amiss you as the organiser are going to foot the bill .

Better to try and source a good price through a local independant export agent (if one exists.)

I believe better prices can be had from local factory buyers for large lots.

[Beardog]

I would think by the time you get done with all the duties& payouts you will be in the red. I hear all the time the farmers in Thailand are always taking it in the shorts when it comes to rice or garlic.

A local marketing approach would probably be your best bet.

If you import to the U.S. any type of vegetation they will basically look up your ass to find things wrong. One bug & they quarantine the shipment & you lose everything. Just shipping Plumeria cuttings from Hawaii to California U.S. to U.S. I lost 4 shipments due to possible mayfly scare or other bug concerns. Any time you ship over water to another country- your in for scrutiny & Ozzy is right on the food inspection. I am sure it is very stringent in any exporting to another country. And your buyer on the other end also can cut your price down & tell you they will only pay 70% of what you wanted & your stuck.

A friend of mine sent 2 tons of blue Ahi Tuna & when it got to Sanfrancisco in perfect shape(flash frozen) he was offered 55% of what they offered. Since he could only get 20% earnest money up front- he was forced to lose money or Fly back to California & pick the Fish up & still lose as fish only stays frozen for so long & he would have to have it resold QUICK.

I would sell local, a lot less headaches. Unless you were selling exotic spices that will net you some good figures, I would avoid the hassle for rice & garlic!

I hope you get a good buyer here so you & your village will be happy.

[allacting]

I would think by the time you get done with all the duties& payouts you will be in the red. I hear all the time the farmers in Thailand are always taking it in the shorts when it comes to rice or garlic.

A local marketing approach would probably be your best bet.

If you import to the U.S. any type of vegetation they will basically look up your ass to find things wrong. One bug & they quarantine the shipment & you lose everything. Just shipping Plumeria cuttings from Hawaii to California U.S. to U.S. I lost 4 shipments due to possible mayfly scare or other bug concerns. Any time you ship over water to another country- your in for scrutiny & Ozzy is right on the food inspection. I am sure it is very stringent in any exporting to another country. And your buyer on the other end also can cut your price down & tell you they will only pay 70% of what you wanted & your stuck.

A friend of mine sent 2 tons of blue Ahi Tuna & when it got to Sanfrancisco in perfect shape(flash frozen) he was offered 55% of what they offered. Since he could only get 20% earnest money up front- he was forced to lose money or Fly back to California & pick the Fish up & still lose as fish only stays frozen for so long & he would have to have it resold QUICK.

I would sell local, a lot less headaches. Unless you were selling exotic spices that will net you some good figures, I would avoid the hassle for rice & garlic!

I hope you get a good buyer here so you & your village will be happy.

Thank you very much for the insightful input.....these are all making me rethinking my approach to this....one more question....would corn be as hard to export too?

[Beardog]

I would think by the time you get done with all the duties& payouts you will be in the red. I hear all the time the farmers in Thailand are always taking it in the shorts when it comes to rice or garlic.

A local marketing approach would probably be your best bet.

If you import to the U.S. any type of vegetation they will basically look up your ass to find things wrong. One bug & they quarantine the shipment & you lose everything. Just shipping Plumeria cuttings from Hawaii to California U.S. to U.S. I lost 4 shipments due to possible mayfly scare or other bug concerns. Any time you ship over water to another country- your in for scrutiny & Ozzy is right on the food inspection. I am sure it is very stringent in any exporting to another country. And your buyer on the other end also can cut your price down & tell you they will only pay 70% of what you wanted & your stuck.

A friend of mine sent 2 tons of blue Ahi Tuna & when it got to Sanfrancisco in perfect shape(flash frozen) he was offered 55% of what they offered. Since he could only get 20% earnest money up front- he was forced to lose money or Fly back to California & pick the Fish up & still lose as fish only stays frozen for so long & he would have to have it resold QUICK.

I would sell local, a lot less headaches. Unless you were selling exotic spices that will net you some good figures, I would avoid the hassle for rice & garlic!

I hope you get a good buyer here so you & your village will be happy.

Thank you very much for the insightful input.....these are all making me rethinking my approach to this....one more question....would corn be as hard to export too?

I think exporting anything into a different country would be the same & corn would be subject to the same scrutiny & health laws as garlic or rice.

[PaddyThai]

My understanding is that you would require a work Permit to do this regularly from Thailand. I believe agriculture is a restricted area for WPs.