Bangkok Post March 11 1999

AGRICULTURE AND HEALTH

Herb export boost, health resort plan for Thailand
Firm to promote its own brands

Somporn Thapanachai
Suphaphan Plengmaneepun

Greenchat Natural Herb (Thailand) Co plans to increase exports of Thai herbal products this year and establish the first local health resort using only Thai herbs.

More than 20 million baht would be spent on expanding production to met anticipated demand, president Chatvanich Puangmalai said yesterday.

And if the initial small-scale resort proved successful, the company would establish probably the biggest health resort in Asia on 500 rai in Kanchanaburi. The project could start in five years.

Exports under the company's own brands would start in earnest mid-year, Ms Chatvanich said. Shipments were already being made to about 10 countries including Australia, Japan and Britain, but most were under the buyer's brands.

The company would persuade importers to accept its own brands for products including toothpaste, tea and aromatherapy oil, its main export lines. It does not allow the export of raw materials because it would not have control over the finished product.

"Thai herbs have properties that differ from those found abroad, so the company must ensure the right mix in production. Once we sold herb extracts to a buyer in Japan, but he was unable to make the finished product correctly."

Apart from exports, the company wanted to capture the local low-end market by introducing "cobra" liquid medicine for women. The medicine is claimed to improve blood circulation and ease period pain.

The medicine used to be available locally several years ago but disappeared from shelves when the patent owner died.

Ms Chatvanich then bought the formula. The company plans to expand production from an initial 44 dozen bottles a day to meet likely demand.

Greenchat Natural Herb was established two years ago, but Ms Chatvanich has been involved in the herb business since she was young. Her father, Chon Puangmalai, is a famous practitioner of traditional medicine in Phetchaburi.

Ms Chatvanich took a three-year course in Thai traditional massage and medicines at Ayuraved Vidyalai (Jivok Komarbhacc), a specialised college.

Her father made medicines from a variety of herbs, expanding production to a small factory 1993. Products sold at the plant are registered with the Food and Drug Administration.

Ms Chatvanich said technology had been introduced to ensure high quality standard of her products.

"I have to accept that the extraction technology in Thailand is still lower than that used by some leading foreign producers because international companies have money to invest. in advance extraction technology. But has sufficient technology."

Greenchat currently supplies 17 companies in Thailand with more than 200 different products including herbal cosmetics, tea and medicines under its own brands.

Four hundred planters supply herbs to the company. Each is granted a quota and guaranteed price.

All supplies are tested to ensure there is no chemical contamination. Those below standard are rejected.

"We want only good planters who prefer natural cultivation methods. We tell them their supplies will not provide huge lump-sum earnings, but will provide sufficient returns for the whole year."

Ms Chatvanich also grows herbs for the company on her Kanchanaburi property that is earmarked for the large-scale resort.

Work on the initial small-scale resort , which is scheduled to open next month, will be handled by Siam Natural Herb Co.

The resort will treat about 20 patients at one time and provide courses lasting between seven and 10 days.

After operating the small facility for a few years to iron out any problems, the company would look to establish the proposed large resort.

Taiwanese had already offered to invest in the large resort, but plans were not yet finalised as the project could take five years to evolve, she said.

Ms Chatvanich said there was only one similar health resort in Thailand, but it used Western-style treatment by foreign doctors and was likely to be more expensive than the purely local alternative.



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