ACEITES LUBRICANTES

3.2.1 Introduction: Fresh/Chilled Baby Corn from Thailand

Baby corn¹⁷³ was introduced to Thailand by the MOAC in the 1970s. When originally introduced it was intended to be an off-season crop for Thai rice farmers. However, since 1990 it has gained increasing significance and has quickly become one of Thailand’s main vegetable exports in its own right. Thailand has also quickly established itself as the world’s top baby corn exporting country with a global market share of approximately 70-85 percent.¹⁷⁴ Compared with other exports in the fruit and vegetable category baby corn has generated a high annual income amounting to US $ 7.5 million in 2008.¹⁷⁵ It is an export-oriented product with over 80 percent of the production being bound for export markets.¹⁷⁶ Thailand has exported three types of baby corn products; fresh or chilled, canned and frozen baby corn. In this case study the focus is on the first fresh or chilled category.¹⁷⁷ It should be noted that although a smaller proportion of baby corn is exported fresh or chilled under customs category HS

173 Zea mays L. Family: Gramineae, Genus: Zea.

174 The market share varies each year. For example in the year 2004 it held more than 80% of the world market share with the highest annual growth (9 percent) in the period 1997-2003 (UNCTAD). Other main exporting countries for baby corn include Sri Lanka, Taiwan, China, Zimbabwe, Zambia, Indonesia, South Africa, Nicaragua, Costa Rica, Guatemala and Honduras. May 1995,

175 223,888,620 Baht (source: The Custom Department, Thailand www.custom.go.th) US $ 1 = 30 Thai Baht.

176 Source: http://cm.nesdb.go.th/cluster_baseinfo.asp?ClusterID=c0023 (in Thai).

177 In the customs category HS 07099090 (Other vegetables, fresh or chilled, young corn) Source:

http://exporthelp.europa.eu/index_en.html.

0709.90.90, and that the majority of baby corn is exported as canned product,¹⁷⁸ the fresh or chilled baby corn has become increasingly popular in the EU with the result that demand for Thai fresh or chilled baby corn from major EU supermarket chains has increased rapidly over the past few years. It has now become a regular vegetable on supermarket shelves and has gained in popularity among EU consumers.¹⁷⁹ As a result, fresh baby corn now generates around 70 percent of the total income from Thai exports of fresh fruit and vegetables to the EU.¹⁸⁰

The EU has always been the main market for Thai fresh or chilled baby corn, accounting for a market share of around 80 per cent.¹⁸¹ In 2007-8 over 70 percent of all fresh or chilled baby corn destined for the EU was for the retail market.¹⁸² Within the EU, the UK is the leading importing country, accounting for approximately 60 percent of the EU demand.¹⁸³ (See Table 2 below)

178 This is under the customs category HS 0710.80.00. Canned baby corn exports account for 80 percent of total export volume whereas fresh or chilled baby corn accounts for 15% of export volume and the frozen category 5% of total export volume.

179 Rakpong J., personal interview held during meeting with the Thai Fruit and Vegetable Producer Association, Nakhon Pathom, Thailand, 9/07/2008).

180 This is in the category “other vegetables, fresh and chilled” (HS 070990) originating in Thailand.

181 There has also been an increasing growth in export volumes. In 2006 the EU imported more than 1,700 tonnes of fresh baby corn from Thailand, worth around US$5m. This was a 50 percent increase over imports in 2005. Source: Data obtained from Office of Agricultural Economic Thailand.

182 The remaining exports are destined for wholesale markets as manufacturing ingredients, or for ethnic markets (such as stalls located in “Chinatowns”).

183 The second and third importers are Denmark and Germany.

Table 2: Thai Baby Corn Exports 2007-8

Fresh or chilled baby corn is a good example of an export product of “non-animal origin”. Being fresh produce it has a short shelf-life and thus carries higher food safety risks than the other two categories of baby corn products.¹⁸⁴ As such it has been subject to strenuous governmental and industry control. Further, small farmers in Thailand are significantly involved in the production of fresh baby corn, and hence this case study can serve as a means of exploring the impact of EU food safety upon small farmers as well as upon large agricultural undertakings.¹⁸⁵

Fresh or chilled baby corn is currently available in the EU in a variety of forms. It may be freshly packed in plastic packaging, offered as a ready-to-eat vegetable in

184 They are susceptible to microbial contaminants and residues of chemical substances from the production and distribution processes. (Source: Interviews with Associate Professor Vicha Sardsud, Director of Post-harvest Institution, Chiang-Mai University, field trip to Wieng-gan, Chiang-Rai, Thailand, 1/07/2008 and with Thai Fruit and Vegetable Producer Associations’ representative, Mr.

Pratom Tankum, Nakhon Pathom, Thailand, 10/07/2008.

185 Due to the nature of the plantation procedure, baby corn is planted in rice fields as an off-season crop, the majority being run by small-scale rice farmers. However, in recent years larger scale producers have set up their own plantations in order to keep up with the export opportunities. Source: interview with Associate Professor Vicha Sardsud, Director of Post-harvest Institution, Chiang-Mai University, field trip to Wieng-gan, Chiang-Rai, Thailand, 1/07/2008. Vicha Sardsud is a leading academic at the Post-harvest Institute at Chiangmai University and is an expert on private standards.

microwavable packaging, mixed with other vegetables for freshly-prepared products for stir-fry, or as a side-vegetable. Examples of baby corn products found in the fresh produce sections of EU supermarkets are depicted below.