Growth in processed food exports to EU nations
Processed-food export growth is expected to slow to 5 per cent next year on concerns over poor economic conditions in the European Union, the industry's major market, according to the Thai Food Processors Association.
The sector, comprising producers of sweet corn, canned foods and processed foods, targets export growth of 10 per cent to Bt150 billion this year. However, the EU’s financial crunch could seriously hurt demand and cause difficulties for exports in the sector next year, said Ghanyapad Tantipipatpong, president of the association.
Sales to the EU account for 15 per cent of the industry’s total export value.
Other factors likely to lower shipments next year include the baht’s fluctuation, and tariff and non-tariff barriers to some Thai products.
Pornchai Pinvises, chairman of the association’s Sweet Corn Processors Group, urged the government to lobby the EU to terminate anti-dumping duties imposed on Thai sweet corn.
The EU will review the levy on Thai sweet corn next June, at which point it will have been in place for five years. Exports to the EU account for more than 27 per cent of Thai sweet-corn exports.
Pornchai explained that some Thai sweet-corn exporters had to shut down operations since the EU imposed the levy, while many had been forced to seek buyers in other markets.
“The price gap between Thai canned sweet corn and others has damaged Thai exporters, as Thai products face about 15-per-cent anti-dumping duty and 14-per-cent import tariffs, while sweet corn from France and Hungary have not faced these high levies,” he said.
Thailand is still the world’s leading exporter of sweet corn, after shifting focus to other markets. Sweet-corn exports are expected to reach 170,000 tonnes this year.
Export volume could reach 200,000 tonnes a year if the EU revokes the anti-dumping duty on Thai product.
The Thai Food Processors Association has called on the Commerce Ministry to allow imports of yellowfin tuna to support the industry’s growth.
