April 28, 2009

Thailand food exports seen to drop to US$20.3 billion

Thailand is expected to earn about THB720 billion (US$20.3 billion) from food exports in 2009, down from the THB760 billion (US$21.5 billion) received last year, according to Paiboon Ponsuwanna, Federation of Thai Industries (FTI) vice chairman.

Shrinking global demand and intensifying competition are the main reasons for the THB58-billion drop.

Ponsuwanna said that despite the global economic meltdown, demand for food and agricultural products still exists and Thailand is capable of exporting more food to countries which are reluctant to import food from China due to concerns over melamine-tainted food products.

He said that there is still an opportunity for Thailand to export more primary food products such as frozen shrimp and tuna fish to the US as well as chicken to the EU, but food exporters must bear in mind that their average profit will decline more than 15 percent, depending on the costs of each food manufacturer.

He said Thai food producers; especially small- and medium-sized enterprises must consider the supply side and have an ability to verify food standards in order to create consumer confidence as the world is gripped with ongoing economic meltdown.

He added that other major factors Thai food manufacturers must strictly follow are to maintain price competitiveness and food quality.

Thailand's top 5 exports remain frozen and processed shrimp, canned tuna, processed chicken, rice and sugar.

US$1 = THB35.21 (Apr 28)