3. Industrial Situation and Competition
         Industrial Situation
         The products  of frozen  fruits  and  vegetables are new line 
products which are different from the dry and canned products etc. The 
products of frozen fruits and vegetables maintain freshness, cleaness, 
original tastes without improvement, natural colours without mixing of 
any chemical.  Therefore, they  are  not  dangerous to  the consumers.  
The frozen manufacture process keeps  the frozen fruits and vegetables 
fresh  and  available throughout of the year enen in the out of season 
time.
         Japan is the biggest consumer of frozen fruits and vegetables 
of not less  than 500,000 tons per year.   In 1998, the  Company  only 
exported  the  frozen  fruits and vegetables to Japan in the amount of 
18,000 tons.  But due to the continuous sluggish of  japan economy, so
in 1999 the company policy of sale volume will be  decreased from last
year in which sale target will be at 15,000 - 16,000 MT.   
         Competition
         Domestic Competitors
         It is  deemed  that  the  Company is the  biggest exporter of 
Green Beans and Soy Beans with the export sharing of not less than 70% 
of all exported Green Beans and Soy Beans. The domestic consumption is 
deemed as the new market for frozen fruits and vegetables. This is due 
to the abundance of  fruits  and  vegetables in Thailand available for 
chosen and bought with the  cheaper  prices than the prices of  frozen 
fruits and vegetables. However,in 1996,the Company began to distribute 
its  products  through  its  agent, P.P. Foods  Supply  Co.,Ltd.   The 
marketing targets are department stores,Hotel and Japanese restaurants  
which  concentrate  on  the   upper  middle  level  of  customers  and 
the  trade  group  which  require the goods in style of semi-products, 
clean with sanitary.
         Overseas Competitors
         The  important  competitors  are  China and Taiwan especially 
China  which  possesses  the  present  extreme  low labour cost.  This 
allows China to sell the products at very low prices. The disadvantage 
of the Chinese products  is their inferior  quality when compared with 
Thai products.  At present, Taiwan implements the machinery harvesting 
technology  in  place  of  labour  harvesting to decrease a lot of the 
production costs and produce quality products.   However, the said two 
countries are disadvantage on the natural disasters which often occur.  
This  creates  the  irregular  productions which Thailand seldom faces 
with this problem. Moreover,the planting may be made almost throughout 
of the year in Thailand.  Therefore, Thailand is able  to continuously 
supply the customers with the products.
OPT 1.50           !B!                                                                    P '   N  n 