Despite global challenges, Thai food exports still surge
Thai food exports experienced a robust 4.6% increase, reaching 1.16 trillion baht in the first nine months of the year. Drought conditions propelled this growth as it curtailed agricultural production. Thus, creating heightened demand across ASEAN and South Asia.
Despite a decline in Thai agricultural output, the export sector saw a significant surge, particularly in fresh fruits, rice, and sugar. The effects if El Nino largely caused this uptick in demand.
Anong Paijitprapapon, executive director of the Industry Ministry’s National Food Institute, underscores the Thai food sector’s resilience in the face of challenges.
Chantanon Wannakejohn, secretary-general of the Office of Agricultural Economics, predicts a 1.5 to 2.5% growth in the agricultural economic trend. Government policies, consumer demand, and improved farm management are driving factors contributing to this positive trajectory.
Despite risks Thailand food and agricultural exports remain robust
Despite potential risks from weather fluctuations, disease outbreaks, and insects, Thailand’s food industry has remained robust. Moreover, it increased its share in the global food market from 2.25% last year to 2.47%.
The Chinese and ASEAN markets played pivotal roles, witnessing notable expansions in orders for fresh fruits, rice, and sugar. However, certain product categories faced contractions. This was due to economic slowdowns in major trading partners such as the US, Europe, China, and Japan.
Challenges persisted in agricultural raw material production, affecting commodities like cassava, pineapple, and skipjack tuna facing low prices. Only shrimp is the exception.
Looking ahead, projections for 2023 estimate that Thai food exports will surpass the 1.55 trillion baht mark, marking a 5.5% increase. The forecast for the following year anticipates a 6.5% growth, reaching 1.65 trillion baht. The new government’s stimulation policy, a flourishing domestic economy, and emerging markets in the service and tourism sectors drive this growth.
A favorable exchange rate in 2024, averaging around 35 baht to the greenback, is expected to support international tourism recovery, contributing to Thailand’s balance of payments.
Thailand has now secured its position as the 12th largest food exporter globally.
Challenges persist in Thailand. However, the country offers significant economic opportunities. This solidifies its role as a key player in the evolving global food industry.
This year’s achievements highlight Thailand’s rise. It positions the country as a resilient and influential force in the ongoing evolution of the global food industry. Chantanon emphasized this.
