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Chiangrai’s R3A Highway bringing China’s Produce to Thailand

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This pickup truck is taking imported Chinese produce from Chiang Rai to a market in Phayao province.

 

CHIANGRAI – Many Thais would probably be surprised to learn that the common fruits and vegetables they eat often travel great distances from China before showing up in their local markets. Nor are they aware that their insistence on appearances contributes to the increasing importation of produce from China and the hardships this puts on Thai farmers growing the same produce.

”Our consumers want beautiful broccoli, carrots and many other kinds of vegetables. Our local produce looks different from what is imported from China,” said Nitipon Promsawadi, a produce wholesaler at Chokcharoen central market in Chiang Rai province.

He said that besides having a beautiful appearance, the imports are uniform in size and packaged well. He commented that Thai varieties are sometimes unavailable due to floods or other circumstances.

Mr Nitipon orders his imported produce from other wholesalers at the Thai Market, located on the outskirts of Bangkok in Pathum Thani province. Interestingly, the Chinese produce shipped to him from Pathum Thani has already passed through Chiang Rai, either unloaded from boats at the Mekong River port of Chiang Saen or entering Thailand in ferried tractor-trailers at Chiang Khong. The trucks traverse Route 3 Asian (R3A), a 1,887km route that links Kunming, China with Bangkok, after passing through Laos.

Thailand, including Chiang Rai.

So a carrot may travel 2,800km or more from where it is grown in mainland China to where it is sold in Chiang Rai, a place where carrots grow very well. In fact northern Thailand is well suited to growing many types of produce not usually associated with a tropical climate because of the cool mountain valleys.

Kham-aoey Udomsab, another wholesaler at Chokcharoen market, pointed at her 10-wheel truck, which was being loaded by workers carrying boxes of carrots and other vegetables in front of her wholesale outlet.  The truck transports goods back and forth between Bangkok and Chiang Rai. ‘‘This truck has about 100 boxes of carrots and a number of boxes of grapes, as well as sacks of garlic and other produce. I charge 13,000 baht per trip to bring a load of produce from Chiang Rai to Pathum Thani,” she said, adding that on the return trip the truck often contains some of the same produce it came down with.

About 60km from Chokcharoen market at Chiang Saen port, large boats from southern China are unloading garlic, onions, sunflower seeds and other produce which is not especially perishable. The workers, who mostly speak Burmese, are unloading produce from boats and loading it onto trucks, some bound for warehouses in Chiang Rai but most for Pathum  Thani. Some groups of workers were loading cooking palm oil onto boats preparing to sail back up the Mekong into China.

Not many months ago Thailand experienced a severe shortage of palm oil. Prices shot up as supermarkets quickly sold out their stocks and large amounts were imported from Malaysia. The government set a price for palm oil and compensated 10 processing companies so that they could sell it at the price stipulated by the government.

At another corner of the port, a Food and Drug Administration (FDA) official carried small bags of garlic and sunflower seeds to be tested for contamination with hazardous substances. He explained that Chiang Saen port is used mostly for dry goods, while most fresh vegetables come through Chiang Khong.

trucks exit a ferry at Chiang Khong after crossing the Mekong River from Laos. Above, trucks continue southward down Route 3A from Chiang Khong.

Chiang Khong, about 50km from Chiang Saen via a local road, serves as the entry point for large tractor-trailers coming from China down Route 3A. Trucks containing produce can only pass between 6am and 6pm when the officials from the Plant Quarantine division of the Agricultural Department are on duty. Basically, the officials collect samples of vegetables, fruits and flowers and take them to a station to inspect for insects. When we were at Chiang Khong was no sign of inspections for hazardous substances by the FDA. The produce from China is very fresh, not yet ripe, and kept cooled in the container trucks. However, the inspection officials wore masks and we detected a strong smell of chemicals.

The tools for insect inspection are simple;  a knife for chopping and an electric lamp to allow workers to make a careful search for insects both  inside and outside the produce. Even before the inspectors were finished we noticed that trucks that had brought the produce they were inspecting would take off down the road, bound for the market in Pathum Thani or perhaps a warehouse in Bangkok for a supermarket chain. Obviously they are running on a tight schedule.

‘‘Fresh produce cannot wait too long; it needs to arrive at its destination on time,” said a driver for one shipping company who asked not to be named.

These vegetables came from China to Phan Chiangrai and were then shipped to a market in Chiang Saen on the Thai-Lao border.

‘‘There are about 30 to 40 trailers a day that use this port to transport produce to Bangkok,” said Nivej Srichaiwong, the head of the Plant Quarantine station at Chiang  Khong port. He added that this month grapes are the most popular import. ‘‘The fruits and vegetable that come through vary depending on the season and availability,” he said.

Statistics kept by Chiang Khong port-of-entry officials reveal that in 2009 some 33.4 million kilogrammes of fruit, vegetables and flowers from China,  worth 568.8 million baht, entered the country at Chiang Khong. In the same period only 8.4 million kilogrammes of fruits, vegetable and flowers, worth 124.7 million baht, passed through Chiang Khong on the way to China.

According to Global Trade Atlas, an online trade data system, Thailand imported US$244.9 million (7.33 billion baht) worth of fruit and vegetables in 2008, $301.2 million in 2009 and $349.4 million in 2010. In the same  three years Thailand imported $151.4 million, $202.8 million and $206.1 million, respectively.

Meanwhile, the Centre for International Trade Studies, University of Thai Chamber of Commerce, reported that Thailand had a $2.99 billion trade deficit with China in 2010.

workers unload a truck at Chokcharoen central market in Chiang Rai.

Mr Nivej said the number of  trucks coming through Chiang Khong had been higher since a  memorandum of understanding (MoU)  between the Thai and Chinese governments on the administration of quality supervision, inspection and quarantine (AQSIQ) went into effect on June 1.

However, several exporters and importers who asked not to be named said that the MoU does not benefit them. ‘‘It has increased our cost of exporting and importing four to five times ” said one Chinese merchant.

With the advent of free trade agreements the prices of imported foods have dropped dramatically, but their are many hidden costs in the long-distance transport of fresh produce. Aside from logistics, economic and social factors are also involved. The import of produce which has traditionally been supplied by Thai farmers leaves them feeling vulnerable and scrambling to adjust.

‘‘We have had to change from growing garlic, cabbages and tomatoes to new crops,” said Rangsan Biacheku from Romyen village in Chiang Rai province. Mr Rangsan said that last year his neighbours weren’t able to sell their tomato crops. The price fell below two baht a kilogramme, which didn’t justify the effort of harvesting them.

‘‘We had to leave them rotting in  the fields,” he said. He used to grow cabbages on his land beside a cool  mountain village, but no more. ‘‘The price is not attractive and the investment cost is very high,” he said, adding that he has now switched to growing coffee instead.

Pan Torsuay in Phukamyao district of Phayao province said that now the only garlic he grows is for his own family. ‘‘We used to grow garlic for additional income after harvesting rice but now it’s just not worth it,”  said Mr Pan. Many of his neighbours have become hired labourers.

Transporting foods long distances also contributes to global warming because it uses much more fuel. Locals also use more fuel. ‘‘We used to buy garlic and other vegetables which are locally grown in Phayao, but now we have to buy Chinese imports from the market in Chiang Rai and bring them  back 93km to Phayao,” said a wholesaler in  Phayao.

Moreover, the long-distance transport also takes a toll on the highway system. The cost of transporting from mainland China to Bangkok is normally about 75,000 baht a shipment. This certainly prompted some shippers to use longer trailers which can carry more produce, but the heavier loads take a greater toll on highways and cause the need for more frequent repairs. A 12-13.7m trailer fully loaded with vegetables normally weighs about 11.3 tonnes, while a trailer-load of fruit is about 14.8 tonnes.

Nivej Srichaiwong from the Plant Quarantine division and another official look over transport documents at the Chiang Kong port.

Onions can weigh up to 24 tonnes a load. The allowable weight for Thai highways is 21 tonnes.

According to the Department of Highways, from 2009 to the first six months of this year, the cost of maintaining and repairing highways 1, 31 and 32, which are used to transport goods from Chiang Saen and Chiang Kong ports to Bangkok, has risen drastically, from 491.5 million baht in 2009 to 846.7  million baht in 2010. In the first six months of this year the department had already spent about 987.4 million baht.

On the consumer side, there is increasing anxiety about the safety of Chinese imports. The FDA office in Chiang Saen says it has detected only trace amounts of chemicals in Chinese produce which are not beyond the acceptable level. However, vegetables and fruits that travel a long distance require the use of preservatives to keep them from spoiling, and there is also the possibility of contamination during the cultivating and harvesting processes.

Thai officials ensure Thai consumers that Chinese exporters have received phytosanitary certificates from the Chinese government, and the fact that there is only irregular testing by the FDA at the Chiang Khong station  indicates that Thai officials are satisfied that there is no cause for concern. On the other hand, especially after news reports last week that the Chinese government had closed down nearly 5,000 food producers because of food safety concerns, it may be time for Thai consumers to reconsider the wisdom of putting high-mileage food on their tables.

 

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PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

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(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

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Old National Bank And Infosys Broaden Their Strategic Partnership.

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Old National Bank And Infosys Broaden Their Strategic Partnership.

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Infosys

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children

Qantas Airways Apologizes After R-Rated Film Reportedly Airs On Every Screen During Flight

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

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water

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

water

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP

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