December 17, 2013

Thailand's food exports may rise 6% in 2014

As major trading partners are showing signs of economic recovery, the National Food Institute (NFI) is expecting Thailand's food exports to grow by about 6% in 2014 to THB970 billion (US$30.3 billion), a rebound from 2013's decline, according to a Bangkok Post report.
 

Exports are projected at US$28.5 billion this year, down 6% from 2012, due mainly to the global economic slowdown and the baht's appreciation, said NFI president Petch Chinabutr.

"Next year, the economies of major trading partners such as the US, Europe and Japan will improve and the baht will become more stable as the result of the lessening of quantitative easing," he said.

In 2014, food export value will recover to close to the THB971 billion (US$30.3 billion) earned in 2012 and could even hit THB1 trillion (US$31 billion) if exporters develop more value-added products, Petch added.

While the overall outlook has improved, shrimp exports are unlikely to recover due to early mortality syndrome (EMS). The situation is likely to take six more months to ease.

The EU has also removed the Generalised System of Preferences for Thai processed food. However, it will mainly affect only shrimp exports, he said.

About 60% of Thailand's exports are to Asian countries, with the Association of Southeast Asian Nations (ASEAN) representing most trade value. The EU and US markets each account for 13%.

Petch added that rather than focusing on more exports to ASEAN countries, exporters should focus on non-ASEAN markets such as Japan and US as their demand is more stable despite some economic difficulties.

According to the latest NFI statistics, the top five export items in the first 10 months of this year were rice, sugar, canned tuna, chicken and shrimp, representing 48% of exports.

Petch said the political conflicts have yet to affect projected food exports for the rest of 2013 but said orders were taken at least three months in advance.