May 28, 2011

 

Thai exports of food to Japan projected to grow

 

 

Thailand's exports of food to Japan are projected to grow faster this year than in 2010 and could offset an expected drop to the EU, the Export Promotion Department said.

 

Malee Choklumlerd, the department's deputy director-general, forecasted that food exports to Japan would rise by 15% this year from 12% last year, as the impact of the March disasters and subsequent needs in the recovery period build demand.

 

In the first four months of this year, Thailand's food exports to Japan increased by 23.8% year-on-year to US$1.03 billion.

 

Major export items to Japan are processed chicken, up 32% on-year in the period to US$253 million, canned seafood (up 30% to US$223 million), and frozen shrimp (up 10% to US$100 million).

 

"Concerns over nuclear radiation contamination as well as reconstruction efforts, will spur a demand for food imports to Japan," Malee said at a seminar held by the National Food Institute (NFI) and the Japan External Trade Organisation (Jetro) on May 26.

 

Japan imported US$2.8 billion worth of food products from Thailand last year, representing 15% of overall food exports.

 

"The substantial rise of food exports to Japan could offset shipments to the EU which are expected to decline this year due to a self-imposed ban on 16 vegetables because of contamination concerns," she said.

 

Thailand suspended exports of certain vegetables rather than face possible penalties later on, and is working with EU food safety authorities on problems.

 

Food exports overall rose 20% year-on-year in the first four months to US$5.05 billion, Malee added.

 

According to the NFI, exports of processed chicken, raw and frozen seafood, vegetable and fruits, as well as ready-to-eat food will be the biggest beneficiaries of Japan's increasing dependence on imports.

 

Japan will need to step up food security while expanding overseas production of food, said Amorn Ngammongkolrat, the NFI executive vice-president.

 

"Thailand's food safety has been guaranteed with 100% of 15,598 factories registered with the Public Health Ministry being certified with good manufacturing practice (GMP)," Dr. Amorn said.

 

As much as 60% of food consumed in Japan is imported with major sources including the US, China, Australia, and Thailand.

 

The share of Thai food in the Japanese market has risen to 6% in 2010 from 4% in 2005. Over the same period, the share of Chinese food imports declined to 14% from 16%.