Thailand food exporters face tougher competition

 

 

Among Thailand food exports, chicken, shrimp and canned tuna are some of the products that have led global markets but exporters must prepare for greater competition, especially from Malaysia and Indonesia.

 

 

Pornsri said Malaysia has set a strategic goal of being the world's halal food production hub, while Indonesia has strengthened its fishery industry by inviting foreign investors to jointly run businesses.

 

"More research should be conducted to add new varieties to Thai dishes while the state agencies may provide scientific facts to clear some debatable issues such as the danger of eating eggs every day," she said.

 

The National Science and Technology Development Agency has been working closely with local food industries to establish food clusters, which would group products according to their strategic strengths and weaknesses and would plan each group's sustainable growth, she said.

 

Thailand was the world's 13th largest food exporter in 2008. Exports earned Thailand US$23.86 billion (about THB800 billion), equivalent to about 2.4% of global food exports. The US led with US$111.05 billion in value and an 11.1% market share.

The National Food Institute estimated that Thailand's food exports would fall to about THB722 billion (US$21.7 billion) in 2009 because of the global downturn, but then expand by 4-5% to THB755 billion (US$22.7 billion) in 2010.

 

In 2008, the country earned THB84 billion (US$2.5 billion) from shrimp products, THB64 billion (US$1.9 billion) from tuna, and THB50 billion (US1.5 billion) from chicken.

 

The US, the world's largest chicken producer, has many organisations to support the chicken industry, including the outstanding National Chicken Council (NCC), said Pornsri.

 

Supported by the US Poultry & Egg Association, the council stages the National Chicken Month campaign every September, when millions of coupons are distributed to consumers for buying chicken products.

 

Charoen Pokphand Foods Plc executive vice-president Teerasak Urunanon said the competitiveness of Thailand's chicken exports was expected to improve in 2010. Cheaper soymeal and corn for feed would cut production costs to about THB28 (US$0.84) per kilogramme of chicken in 2009, compared with THB33 (US$0.99) per kilogramme the year before.

 

But export prices of processed meat fell to between THB130 (US$3.91) and THB140 (US$4.22) per kilogramme, down from THB170 (US$5.12) per kilogramme in 2008. The stronger baht last year, at about THB32-THB33 (US$0.96-US$0.99) against the US dollar, also hurt exporters.

 

Thailand is forecast to export about 360,000 tonnes of chicken in 2010, up from 320,000 tonnes in 2008 and 350,000 tonnes in 2009.