The Thai Small Industry Finance Corporation has allotted one billion baht (€200m) to promote food safety standards among Thai food manufacturers, the Bangkok Post reports this week.
According to the story, soft loans and joint-venture proposals will target 200 to 500 manufacturers, aiming to improve their production efficiency and health standards, as well as build their competitiveness, said Kanok Abhiradee, the president of the corporation.
Of the total budget, about 100 million baht would be loans with interest up to one percentage point below the agency's normal rates, with a grace period of up to two years. The repayment period is a maximum of 10 years, with extensions of up to five years possible on a case-by-case basis.
The newspaper continues that under the joint-venture terms, the borrowers' factories must comply with Good Manufacturing Practice (GMP) as well as Hazard Analysis and Critical Control Point (HACCP) standards.
The authority is prepared to take interests of up to 50 per cent in joint ventures, investing a maximum of 50 million baht in each company. The National Food Institute will screen applicants.
The Bangkok Post adds, that of Thailand's 12,000 food processing companies, which generate an annual revenue of 400 billion bath (€10.5bn), only 300 firms so far had complied with the GMP and HACCP standards, Kanok said.
The imposition of higher quality standards by the European Union and the United States has been interpreted by many developing countries as trade protectionism, the story concludes.