Mung beans, a key ingredient of vermicelli production is still in high demand on this 2022

In 2021, the Thai Wah company's food business performance can still grow. The dry vermicelli, fresh vermicelli, and bean sheet had total sales of USD 42.78 million, an increase of 13% YoY by estimated. The domestic market is still the main market for 84% of total sales, and 16% was export sales.

The company has a production capacity of approximately 23,000 MT of vermicelli per year. It has a capacity utilization rate of about 70%. The primary raw material for production is mung beans. It is an essential component, with approximately 50%-70% of the cost of goods. The price will fluctuate depending on the seasonality, demand, and supply. In some situations, the company needs to buy raw materials to keep an inventory sufficient for production and to have a constant cost of raw materials. The company buys green beans by importing directly or buying through dealers from European countries or China. The company does not risk relying on manufacturers or distributors because there are various sources of raw materials from both domestic and foreign manufacturers.

On the other hand, the company has to closely monitor the situation of the raw material market and build a good relationship with raw material suppliers so that the company can be informed and better forecast market trends in product planning and management.