Thailand’s food exports to rise by 8.8%, hitting 1.6 trillion baht
Thailand’s food exports are set to rise by 8.8% year-on-year, reaching 1.6 trillion baht this year, according to the National Food Institute (NFI). This growth is largely attributed to increasing global demand and a decline in raw material prices, said the President of the NFI, Supawan Teerarat.
“Raw materials such as tuna, sugar, soybeans, and wheat have seen a price decrease, which benefits the food processing industry.”
In the first six months of this year, Thai food exports climbed by 9.9% year-on-year, amounting to 852 billion baht.
Despite these gains, food manufacturers and exporters are expected to face ongoing challenges, including elevated freight rates due to geopolitical conflicts and the impact of a sluggish US economy.
KGI Securities (Thailand) reported that the US economy is projected to enter a cyclical slowdown from late this year through to next year. This downturn could exert additional pressure on Thailand’s export sector, warned the NFI.
For the latter half of this year, food export values are forecasted to rise by 7.8% year-on-year to roughly 797 billion baht. In the third quarter, the value is expected to hit approximately 395 billion baht, increasing to 402 billion baht in the final quarter of 2024, according to Supawan.
Last year, Thailand’s food exports reached 1.51 trillion baht. This surge was driven by the global market’s rising demand for food reserves, spurred by the drought crisis, high inflation, geopolitical tensions, and an economic slowdown.
Concerns about food security among Thailand’s trading partners could further boost demand for Thai food products. However, this also means facing more intense competition in the global market.
Supawan expressed confidence that Thailand could secure additional food purchase orders due to the high quality of its products, which has garnered customer trust.
The NFI highlighted concerns over food trade between Thailand and China. Thailand has been importing increasing amounts of agricultural produce from China, such as fruits and vegetables, which negatively impacts Thai farmers.
Despite this, Thailand maintained a trade surplus with China last year, amounting to 272 billion baht. This surplus resulted from exporting food products worth 370 billion baht to China while importing Chinese food products worth 98 billion baht.
In the first half of this year, Thailand reported a trade surplus with China of approximately 132 billion baht, reported Bangkok Post.
