Migrant labour shortage threatens Thai food export industry

The threat of global food shortages due to the ongoing Russia Ukraine war has prompted several countries to buy and stock-pile food from Asia. The Thai food industry has witnessed a surge in larger international orders, but the honeymoon phase could be brief since a major labour shortage in the food sector remains unresolved, according to the Chairman of the Federation of Thai Industries (FTI), Kriengkrai Thiennukul.

The FTI say Thailand will not be impacted by the lack of workers because the country has enough farm output and is a major food exporter. Low labour in Thailand was caused by the Covid19 outbreak, resulting in a high number of migrant workers returning home to Laos, Myanmar, and Cambodia, creating challenges in the food industry and its supply chains.

“Thai food factories have prepared raw materials to meet demand that is growing out of a shortage of raw materials caused by the war. The number of Thai and migrant workers in the food industry is estimated at 500,000.”

Thailand’s tourism, service, manufacturing, and export industries all want extra people. The FTI has urged the government to address the worker shortage as soon as possible by negotiating memorandums of understanding with neighboring countries to increase migrant worker arrivals.

Economic activity has improved after Thailand reopened its borders and lifted additional controls against Covid, resulting in a higher demand for more labour.

This year, the export industry will be critical in raising GDP. Thailand’s food export value is predicted to reach 1.2 trillion baht, according to the National Food Institute.

SOURCE: Bangkok Post