Tuesday, October 27, 2009

EXPORT SALES OF CHOCOLATE FEEL THE HEAT

       Mrs Flowers, manufacturer and distributor of home-made chocolates, expects its export sales to be flat or even down this year.
       Buyers in the US and Europe are delaying their orders during these tough economic times.
       Marketing manager Taras Sudhikam said the economic slowdown had affected chocolate consumption, especially in the US and some European markets.
       "This is a big concern, foreign buyers not ordering our chocolates due to the poor state of their economies. This has affected our exports, which are expected to be stagnant this year," he said.
       Taras said exports normally accounted for 60-65 per cent of Mrs Flowers' sales revenue, with foreign buyers placing orders in May or June for local availability in October and November.
       "But a lot of buyers are not placing orders this year until October and November, and it's quite difficult for us to deliver on time, due to our home-made system and principle of freshness," he said.
       Taras expects next year's exports to be flat or up slightly growth.
       He pointed out the company had achieved 80-90 per cent of its domestic sales target.
       "We have two months left in the year to boost our domestic sales, and it's our peak season, with individuals and corporate customers purchasing chocolates as gifts for friends and customers for New Year's," he said.
       Taras said that up to half of company sales were generated in the final two months of any given year.
       "That will allow us to achieve full-year growth of 5-10 per cent in domestic sales this year," he said.
       Mrs Flowers yesterday introduced its first-ever gift sets of chocolate and Thai snacks for the local market, targeted at individual and corporate customers alike. Prices range from Bt1,189 to Bt3,589.
       The company expects to sell as many as 5,000 gift sets by year-end.
       Mrs Flowers also announced a revamp of its business strategy to cope with the economic slowdown, which has affected overall chocolate consumption.
       "We set up a new subsidiary earlier this year named King Arthur. It delivers chocolates for use as ingredients to corporate customers like ice-cream manufacturers and bakeries," said Taras.
       He said the company also produced house-brand products for some retail clients, including Tops Supermarkets.

Ministry gets prepared for second wave of influenza

       The Public Health Ministry is bracing for a second round of type-A (H1N1)influenza attacks in coming weeks.
       Reports of a second flu wave and a sharp jump in patients in the US and Mexico have prompted health authorities to issue an alert of a potential new strike as the weather cools and the new school term gets under way.
       People attending crowded activities,such as the Loy Kratong festival on Monday, are urged to protect themselves from the virus.
       "We have to carefully watch out for a flu outbreak over the next two to three weeks as 12 million students will return to school," said Kamnuan Ungchusak,a Public Health Ministry disease control expert.
       "Also, the cooling weather and festivities enable the virus to stay in the environment longer and transmit to more people without proper protection."
       Students were among the first group to contract the type-A H1N1 influenza when the first flu wave hit in late April.Thousands of schools in Bangkok were ordered closed for a week to contain the outbreak.
       About 40% of schools in Bangkok and 20% of more than 30,000 schools under the Office of the Basic Education Commission reported flu cases during the first round of the flu, Dr Kamnuan Paijit: Hospitals said.ready and waiting The epidemiologist believed schools in rural areas were at greater risk this time because the flu virus had spread to local communities.
       "It is worrying that local flu cases will increase rapidly if the new flu wave strikes," Dr Kamnuan said.
       Permanent secretary for public health Paijit Warachit said he would call a meeting today of provincial public health chiefs and livestock officials in the lower North and upper central provinces on preventing H1N1, seasonal flu and bird flu outbreaks.
       Health authorities are also working with medical schools and the Emergency Medical Institute of Thailand to build a network of emergency units to help cut mortality rates and ensure beds are available for critical patients.
       There have been 182 deaths in Thailand from H1N1 as of last Saturday.
       Hospitals are equipped to handle a possible surge of new patients from the second flu wave, Dr Paijit said.
       Lessons learned during the peak period of July and August show that both outpatient and ICU wards became quickly overwhelmed.
       An estimated 16,000 patients a day sought hospital treatment for flu-like illnesses during the peak period.
       Government Pharmaceutical Organisation managing director Witit Artavatkun yesterday said it was possible the clinical trial of the type-A (H1N1) vaccine could be undertaken by mid-November as experts had almost completed studying the product's stability.

EVIDENCE OF CONTINUED RECOVERY

       Thailand's economic recovery continues, with a rebound in domestic consumption, private investment and exports convincing official the economic contraction will be limited to only 3 per cent this year.
       As a sign of recovering domestic demand and export markets, the Federation of Thai Industries, Automotive Industry Club yesterday also revealed vehicle output exceeded 100,000 units last month for the first time in a year. The 103,000 units produced were down 16 per cent year on year but up 22 per month on month.
       Last month's automobile exports were also the highest in a year at 49,500 units, down 33 per cent year on year but up 14 per cent month on month. Their combined value of Bt23.8 billion was down 30 per cent year on year.
       Finance Ministry spokesman Ekniti Nitithanprapas said gross domestic product was expected to show a drop of 3.5-4 per cent in the third quarter, against declines of 7.1 per cent and 4.9 per cent in the previous two quarters.
       Several indicators predicted a smaller contraction - value-added tax, commercial-lorry sales, imports of capital goods and consumer procucts and exports, all of which revealed a rebound in domestic consumption, new investment and a recovery in exports. Export value is also expected to drop only 17.7 per cent year on year in the third quarter, to US$41.1 billion (Bt1.37 trillion), against a 23.5-per-cent decline in the first half, due to recovery in emerging markets like China and Vietnam.
       "These figures are in line with Standard & Poor's estimates that despite huge public debts, the economic recovery continues. But S&P is concerned about policy continuity, particularly in the medium term," Ekniti said.
       "If the red shirts resume meeting in late November and political tensions flare back up, it could slow further recovery in domestic consumption and investment and affect the continuity of government measures."

THAI AUTHORITIES CLOSE TO LAYING HANDS ON SAXENA

       After more than a decade-long legal struggle, authorities now smell victory at hand in their bid to bring back bank fraud suspect Rakesh Saxena from Cananda to stand trial.
       "We don't know yet what the ruling will be, but we're getting prepared to bring Saxena back to Thailand," National Police spokesman General Pongsapat Pongcharoen said yesterday.
       In the morning, representatives from the Office of the Attorney-General, the National Police Office and the Foreign Ministry left for Vancouver with high hopes they would escort Saxena back on Friday after the Supreme Court there delivers its final decision tomorrow on Saxena's appeal against extradition.
       Pongsapat said Saxena could arrive at Suvarnabhumi Airport Friday night.
       Once back in Thailand, he will be held in custody at the Crime Suppression Bureau under tight security and 24-hour surveillance.
       During his detention, he will be questioned in order to build up the case against him, with Pol General Pansiri Prapawat assigned as chief interrogator.
       Public prosecutors will then take on the case and are expected to have him arraigned in Criminal Court.
       Acting National Police chief Patheep Tanprasert held a half-hour staff meeting to discuss how to handle Saxena once he entered the country.
       Thailand requested Saxena's extradition in 1996 to stand trial for fraud in connection with an US$88-million (Bt2.94 billion) loan that was never repaid. He was ordered to surrender for extradition in 2003, but in 2006 the order was suspended while Ottawa reconsidered the case in the wake of Thailand's military coup on September 19 of that year.
       Saxena, an international financier, was accused of playing a key role, together with Krirk-kiat Jalichandra, in the collapse of Bangkok Bank of Commerce (BBC). Banking authorities had to contribute Bt100 billion to pay for the damage to BBC. Krirk-kiat has faced a dozen lawsuits over the BBC scandal and still goes to court to defend himself.
       Saxena's extradition case has been running for so long that most political observers have written it off. Next July will see the statue of limitations expire in the case.
       Saxena, who has been kept in house arrest at his luxury residence in Vancouver, has been arguing in court that his safety would be at risk if he were to be ruturned to Thailand.
       Last year, a top British Columbia judge feared Canada might suffer a "black eye" if the "notorious extraditon case" passed tha cut-off date, said a report in an online Canadian newspaper.
       If the longset-running extradition battle in Canadian history is not completed by next July, when the charges become statute-barred, he'll walk free, Canada.com said.
       "Noting that the case has dragged on for 'years and years', BC Appeal Court justice Edward Chiasson said he was worried it would be an embarrassment to Canada if the July 2010 deakline passes and there was no resolution," Canada.com said.
       A political source said the presence of Saxena back in Thailand would become an embarrassment for some key members of the coalition government, who allegedly benefited from the failure of BBC.
       "It seems that the Democrats are trying to keep the Bhum Jai Thai Party at bay by trying to bring Saxena back to Thailand," the political source said.

Monday, October 26, 2009

Unionists rolled as big wheels keep on turning

       More than 100 armed railway police and security volunteers have released a train held at Hat Yai station by State Railway of Thailand unionists.
       The train was the first of 14 locomotives which operate on lower southern services to resume operations.The services have been hampered by a 10-day strike.
       A driver sent from Bangkok took the empty train from Hat Yai to Khok Pho in Pattani before returning again after being warned he might be breaking the law by driving the train.
       Hat Yai railway union head Wiroon Sakaekhum said the driver had violated SRT regulations because he operated the train alone and had no experience on the track.
       The regulations state drivers on the southern lines must have at least 10 years of experience and be accompanied by at least two support staff.
       The SRT management resolved to take a forceful approach and legal action in a bid to resume the rail service after southern staff who are members of the SRT labour union halted services on Oct 16 and blocked the passage of trains which serve the lower South.
       Armed railway police and security volunteers took 10 minutes at 3pm yesterday to free train No.175 from SRT union members.
       Union members who had surrounded the trains at the station booed but did not resist attempts to get the train running.
       In Bangkok, SRT governor Yutthana Thapcharoen yesterday said he had obtained a Songkhla provincial court order which prohibited anyone from blocking normal rail services.
       He said copies of the order had been posted at railway stations nationwide.
       He also issued an order demanding that 65 railway staff members who took leave from Hat Yai station return to work or risk dismissal.
       He also placed 72 train drivers and engineers from Bangkok on standby in case the 65 employees refused to work.
       "The court order is the green light for management to move and allows police to arrest those who block railway services," Mr Yutthana said.
       "SRT staff must follow the orders of the management. If they resist the order intentionally to damage the organisation,they can face the harshest punishment,which is expulsion."
       The SRT governor said 65 union members had taken leave and refused to operate trains, claiming the vehicles were not well maintained.
       As all 14 lower southern trains later passed checks, the union members returned to work in Hat Yai but yesterday continued to refuse to drive the trains,claiming they were worried about safety along the tracks to the insurgency-torn far South.
       The governor said police and soldiers had confirmed protection for the trains,so the safety claim was irrational. Besides, 12 locomotives running in the South were bullet-proof, Mr Yutthana said.
       Prime Minister Abhisit Vejjajiva yesterday said rail workers who left their duties without a good reason would be held responsible for the halted public service.

Wood-fuelled plant set for operation

       Thailand's first wood-fired power plant is expected to start operations early next year as part of the government's policy to promote alternative energy sources, said the Energy Policy and Planning Office.
       A Plus Co, wholly owned by the Thammarak Niwet Foundation, will operate the 1.5-megawatt station, said EPPO secretary-general Viraphol Jirapraditkul.
       The wood-fired plant is a pilot project supported by the EPPO and Suranaree University of Technology (SUT).
       There are a number of suitable fastgrowing trees that act as carbon sinks while being farmed that can be used as clean energy sources once harvested.
       There are three fast-growing tree varieties - acacia, acacia mangium and leucaena - that are commercially viable for use in Thailand, a SUT study found.
       A Plus established a 1,000-rai leucaena plantation to supply its plant with fuel.The firms plans to increase the plot size by another 2,000 rai next year.
       The EPPO and the Energy Ministry supported the project yesterday by providing it with one million leucaena trees for the plantation.
       Leucaena is a fast-growing nitrogenfixing tree with many uses that grows well in tropical conditions. It removes nitrogen gas from the air and make its usable for plants and animals.
       A Plus's power plant will be Asia's second wood-fired power plant, following the launch of a similar project in India.
       The cost of producing power at the wood-fired plant is 1.60 baht per kilowatt hour (unit), slightly higher than 1.25 baht per unit at a coal-fired plant.
       Thai energy policymakers hope the fuel-wood plantations would help reduce both greenhouse gases and coal-fired power production, as well as slowing the pace of deforestation.
       "As the government is promoting biomass and biogas, we might succeed in reducing the use of mainstream fuel,but we deforestation has increased as farmers tend to cut down forests to plant trees that can be used as fuel," said Mr Viraphol.
       The EPPO offers an adder rate of 30-50 satang per unit on top of the unit cost of producing power from renewable fuels,which allows power producers to sell such energy to the Electricity Generating Authority of Thailand at a higher rate.
       However, the EPPO is considering further increasing the adder rate for fast growing fuel-woods to encourage investment in wood-fired power, said Mr Viraphol.
       "The wood-fired power project not only reduces deforestation but it will not reduce the area used for food crops,"said Energy Minister Wannarat Channukul. Using fast-growing trees for fuel will help Thailand achieve its target for renewable energy to account for 20% of local power production by 2023.
       Policymakers are pushing for the use of fuel-wood due to a severe shortage in other biomass resources, such as rice husks, corn waste and chipped rubber wood, said Weerachai Arjharn, chairman of SUT's Center of Excellence in Biomass.
       The Natural Resources and Environment Ministry plans to plant fuel-wood in deforested areas. It plans to increase the current 37,000 rai of fuel-wood plantations to 50,000 rai in the near future, he said.
       "If we turn deforested areas into fuelwood plantations, we could have 300MW of wood-fired power capacity," he said.
       TPI Polene and Mitr Phol Group have also announced plans to start growing leucaena trees near their production plants so they can use the fuel-wood for future power production.

King may "leave hospital soon"

       Her Royal Highness Princess Chulabhorn says His Majesty the King will be discharged from hospital soon.
       "His Majesty can now rise from the bed by himself and can stand with the aid of a walker," Princess Chulabhorn told an audience of Thai people in Italy yesterday."I think His Majesty will leave hospital soon."
       The Princess's remarks were televised on the Television Pool of Thailand.
       She said it would take a while for the King to be able to walk. His Majesty is now receiving physical therapy at Siriraj Hospital.
       "His Majesty is very resolute and determined to undergo physical therapy regularly, many times a day," the Princess said.
       She said Her Majesty the Queen was constantly at the King's bedside and HRH Princess Maha Chakri Sirindhorn also spent her nights at the hospital.
       "We're trying to find ways to make His Majesty laugh by telling him jokes, bringing comedy movies for him to watch and playing music for him. We're trying to keep His Majesty entertained."