Kasisuri plans B200m expansion

Kasisuri Co, Thailand's first producer of rice-bran oil, plans a 200-million-baht production expansion aimed at cashing in on export opportunities.

Export markets for rice-bran oil and value-added spreads have shown stronger potential than the domestic market, says Mr Varapong.

A new production facility will be added to its compound in Ayutthaya's Tha Rua district, raising production capacity for refined rice-bran oil by 50% to 3,000 tonnes a month.

Varapong Supachok, the chief operating officer, said the additional output would be exported, with much of it earmarked for New Zealand and Australia, which already account for half of company sales.

The company's Alfa One and Rizi brands have performed strongly in export markets, and total sales expected to reach a billion baht this year, up by 30% from last year, he said.

Old Fashioned Foods Ltd, Kasisuri's trading partner in New Zealand, has helped it to explore export markets.

"Alfa One has proved very successful in New Zealand. The country has 4 million people, and we sold 4 million bottles of Alfa One rice-bran oil there last year," he said.

Auckland-based Old Fashioned also uses the oil in its spreads, mayonnaise and dips, making it the first in the world to use the grain byproduct in such a manner.

The strong demand together with concerns about a looming worldwide edible oil shortage pushed the company's rice-bran oil exports to nearly 1,500 tonnes a month this year, 50% higher than last year's figure.

Growth is attributed to increased acceptance of the oil worldwide thanks to its healthful properties _ a balanced fatty acid profile, natural vitamin E content and gamma oryzanol, all of which help to lower cholesterol levels.

"Export markets have shown stronger potential than the domestic market, where competition is intense from a range of vegetable cooking oils," said Mr Varapong.

Two years ago, Kasisuri pulled its Chim-brand cooking oil from Thai shelves and replaced it with the higher-grade Arroza rice-bran oil.

"At present, our products are distributed in more than 55 countries, mainly Alfa One and Rizi brands, under both their own and customers' labels," said Mr Varapong.

The production expansion will support the company's plans to ship 2,000 tonnes of rice-bran oil per month next year.

Kasisuri also operates four rice-bran oil extraction facilities using raw materials from the rice-processing plant of Kamolkij Co, one of the world's biggest parboiled rice exporters.

The rice-bran price has increased by 20% this year in line with paddy prices and will continue to rise due to supply shortages resulting from the floods.