Food exports 'to keep surging next year'

However, some worrying factors remain. These include low crop prices, the poor economy in many countries causing consumers to watch their spending, and the cancellation of tariff privileges by the European Union.

This year, food exports are expected to surge by 15.4 per cent year on year to reach Bt1.01 trillion for the first time in history, thanks mainly to higher shipments of rice, tapioca, chicken, and higher-value-added and processed foods. Shrimp exports are still suffering from the impact of early mortality syndrome (EMS).

“The value of food exports is expected to continue growing next year amid the weakening baht, and producers have focused more on processed foods and value-added products, while lower oil prices will encourage more consumption. Exports should grow strongly to emerging markets like China, Russia, Vietnam and the United Arab Emirates,” said National Food Institute president Petch Chinabutr.

In the first 10 months of 2014, food exports grew 11.5 per cent year on year to Bt851.22 billion. Major export products were rice, which was up by 37 per cent to Bt139.81 billion; tapioca, which rose 24.5 per cent to Bt76.05 billion; chicken, which was up 24.3 per cent to Bt66.31 billion; seasoning, which increased 15 per cent to Bt115.86 billion; and fresh and canned pineapple, which expanded 10 per cent to Bt13.91 billion.

Petch said rice, tapioca, chicken, shrimp, canned tuna and seasoning would show stronger exports next year. Shrimp shipments should increase considerably as EMS is eliminated and hatcheries have more shrimp to supply to the world market.

In 2015, rice export is expected to grow by 2.4 per cent, tapioca 9.4 per cent, chicken 7.1 per cent, shrimp 20.4 per cent, canned tuna 0.7 per cent, and seasoning 7.4 per cent. Export of seasoning will expand strongly, thanks to more demand for Thai food and a rising number of Thai restaurants overseas.

But shipment of canned pineapple is expected to decline 3 per cent next year and sugar to drop 5.4 per cent as import markets for those products shrink, while drought risks make production uncertain.

China, Vietnam, the UAE and Russia will be highlighted markets for Thai food exports next year. 

China has a trade deficit in food every year because of its large population and economic growth in its large cities. Products that will see strong demand in China are processed foods, energy drinks, dried fruits, fresh fruits, infant foods, frozen goods, food supplements and snacks.

Export to UAE will increase strongly next year, since that country serves as a distribution centre to other parts of the Middle East and is also home to a lot of foreign labourers. Halal foods will have high potential for export to that market.

Shipments to Russia will also increase significantly next year as it imports more from Asian markets. 

Pornsilp Patchrintakul, chairman of the Board of Trade’s farm and food business committee, said the value of agricultural products was expected to increase slightly next year, while lower fuel prices would benefit food exports.

To promote growth of the food industry, Pornsilp urged the government to revise rules and regulations to facilitate exports, particularly under the upcoming Asean economic integration. He claimed that some regulations, such as those involving customs and the Food and Drug Administration, were out of date. The government should update those laws to increase competitiveness and streamline shipment of foods, as most are fresh and need to be shipped quickly.