July 20, 2009

 

Thailand's food exports are forecast to increase by 3.5 percent in the fourth quarter over the same period a year ago, thanks to the expected recovery of the world economy, reports the National Food Institute (NFI) executive director Yuthasak Supasorrn.

 

Supasorrn said major food importing countries such as the US, Japan and countries in Europe are expected to resume importing food in the last quarter of the year after their economies improve from the first half.

 

The value of the country's food exports contracted 7.6 percent year on year to THB351.12 billion in the first half of the year, due to lower demand against higher supplies.

 

However, despite the lower value in general, Thailand's processed food benefited from growing concerns about the quality of food, particularly from China, while the export value for processed foods grew 4.8 percent year on year.

 

Supasorrn also said the overall situation should improve in the latter half, when the volume of food exports should rise 2.6 percent, but their value will continue to drop at the 6.9-percent rate.

 

He also said that throughout this year, the value of food exports is expected to drop 7.2 percent to THB722 billion.

 

He said the AH1N1 flu pandemic should not hurt Thai food exports, due to Thailand's production quality, which has won global recognition.

 

The average production capacity of the food industry in the first half of 2009 was 51.5 percent, lower than the 53.8 percent in the same period the year before.

 

Supasorrn said NFI forecast food-export value in the third quarter this year to continue to decline compared with its good performance in the same quarter last year.

 

However, if food exports are figured in terms of volume, it is expected to grow by 1.5 percent from last year.

 

Supasorrn added that world food demand in the first half declined, in line with the economic downturn. Thai food manufacturers had to reduce their production capacity to meet the world situation.

 

He said ready-to-eat food was the only segment that grew in the first half from the same period last year. The export value of this segment was THB155.12 billion, increasing by 4.8 percent from THB148.02 billion year on year.

 

Animal foods and raw material foods experienced sharp drops from last year, with declines of 22.7 percent and 20.1 percent, respectively.

 

The products that would be the key drivers in the country's exports in the second half of the year, said Supasorrn, would be shrimp, chicken, sugar, fruit juices and canned fish.

 

US$1 = THB34.129 (July 20)