Isra-Mart srl:Food exporters need carbon footprint labels

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Isra-mart srl news:

Thai food exporters will face competitive disadvantages if they are not prepared for non-trade barriers imposed by European countries in 2012, particularly concerning carbon footprints.

Wanlapa Charoonthum, a senior energy analyst at M&C Energy Group, a UK-based consultancy, said the carbon footprint market is becoming more recognised, with France recently issuing new legislation, effective next year, that calls for all products placed on shelves to have carbon footprint labelling.

Certain companies in Thailand such as Doi Kham, Mama and the packaging maker Tetra Pak already use carbon footprint labels that trace how much carbon dioxide is emitted throughout the entire production process.

The carbon footprint accounts for the carbon dioxide equivalent of emissions issued from the extraction of raw materials, transport of a product and its parts, assembly and waste management at the end of the product’s life.

The Thailand Greenhouse Gas Management Organisation handles applications for carbon labels.

“If companies are able to start using environmental labelling, it will not only increase the competitiveness of Thai industries in the world market but also represent corporate social responsibility,” said Ms Wanlapa.

Amorn Ngammongkolrat, executive vice-president of the National Food Institute (NFI), said Thailand exports around 100 billion baht worth of food to the EU per year, about 12.5% of its total food exports of 800 billion.

The NFI has received support from the Office of Industrial Economics to help food exporters to the EU create carbon labels for their products starting from this year.

Visit Limprana, chairman of the Federation of Thai Industries’ (FTI) food processing club, said he was concerned about smaller exporters that are looking toward new markets.

“These [businesses] need to be alert because the laws [in Europe] will only become stricter,” said Mr Visit, who is also managing director of Nguan Soon Group.

He said sales to the EU next year should rise by at least 10% due to fruit and vegetable demand and increased consumption despite the weak economy.