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Mekong Institute. Identifying Key Products for SME Export. Nittana Southiseng. 9 July 2012. Why should we promote SMEs for export?. SME in GMS. Population 326 mil. >90% SMEs. GMS. Disadvantages of SMEs. Changing consumer demands and awareness. Market liberalization and deregulation.
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Mekong Institute Identifying Key Products for SME Export Nittana Southiseng 9 July 2012
SME in GMS Population 326 mil >90% SMEs GMS
Changing consumer demands and awareness Market liberalization and deregulation Information technology Market Dynamics Competition among retailers Quality & food safety standards
SME’s are unable to capture market opportunities which require large production quantities, homogeneous standard and regular supply. Single SME cannot support the whole value chain of production Single SME cannot integrate itself into the regional and global value chain
Importance of Agriculture Agriculture provides the primary source of livelihood for 36 percent of the world’s total workforce World population is projected to grow from 6.5 billion in 2005 to nearly 9.2 billion by 2050. Thus, global food production must nearly double by 2050.
What criteria should we use in identifying key SME products for export?
How should you promote key SME products in your country to export?
SME Cluster Development A cluster is a network relationship, sharing a localized network and supporting linkages through the exchange of goods, services and knowledge. A cluster exists where manufacturers and related firms collaborate within a given geographical area or proximity with one another in order to achieve common goals.
Export Consortia Export consortia are voluntary groupings of enterprises with the objective of improving the export readiness and increasing the export volumes.
Single Firm Firm A Firm B Firm C Firm D Firm E Firm F Firm G Innovation Networks Economy of scale Synergy Increase supply Improved quality Trust Inter-Firms in Consortium Expand market Creativity Share cost Knowledge Technology transfer Market information Exchange of goods/services -Increase export -Integrate to Regional & Global Value Chain
Market Trend Value Adding Fish Convenient Healthy Less environmental impact Creative Banana Dried Som Tum “Thai Smile”
Examples of Thai Agricultural Creative Products ‘Kessara Bakery Shop’has an idea to bring Pla Shaon, local fish in Singburi, as an important ingredient for cake and ice cream Dried Som Tum “Thai Smile”– vacuumed and dried food – keeps the freshness of vegetables for Som Tum. Cooked in microwave oven for a few minutes, you can enjoy the authentic Thai Som Tum in terms of taste, sweetness, as well as preserved nutrition ‘Proud’ is the Thai sweet brand name. Its selling point is to package Thai traditional sweets and dried fruits in nice-looking forms. It is suited for gifts in every occasion.