Good prospects for food exporters

Malee Choklumlerd, director-general at Department of International Trade Promotion, said staple foods were in strong demand in overseas markets, particularly those reliant on imports for the major food categories. Malee gave the 2017 food export growth target when addressing a workshop aimed at helping agricultural producers and food operators penetrate the US market.
Last year, Thailand exported food worth US$17.87 billion, with the US a key market. Overall, food exports to US rose 10 per cent year on year to US$4.3 billion; food sales to that market accounted for 14 per cent of the total shipped – second only to Japan.
In the first three months of this year, Thailand shipped US$875 million in food to the US. The main products were canned and processed fruit, canned and processed seafood, rice and fishery products.
Malee said that following the workshop, 20 participants would be selected by the Commerce Ministry and TU for a trip in July to the US, where they will discuss trade opportunities with food importers.
 The ministry will hold further workshops with the aim of helping producers and food operators break into additional markets, including China, South Asia and Asean.
 On the French presidential election and the shadow that casts for that country’s potential exit from the European Union, Malee said the government would await the outcome of the poll and see whether campaign rhetoric lined up with any new trade policies.
In the US, a recent executive order by President Donald Trump ordered a study into countries with unfair trade practices, causing concern in Bangkok. Thailand runs a trade surplus with the US.
 Thiraphong Chansiri, chief executive officer of TU, said it was too soon to speculate on the outcome of the Trump order. Monitoring was required for any trade impact on Thailand, Thiraphong added.

Business as usual 
For now, however, it has been business as usual for the company and other food exporters, he said.
“If US measures are introduced, we are ready to adjust our practices to cope with them,” said Thiraphong, who is also an adviser to the ministry for the US.
The US remains a key market, particularly for food products and innovative items with differentiation, he said. New distribution channels could spur an increase in export to the US, especially in food, the executive said.
Innovation and differentiation were vital, he added, alongside the issues of quality, price and environment practices, he said, and the world is keeping an eye on how accountable Thai producers are in these areas, he said.
Thiraphong said Thailand must build up trust in its products in the global stage and pay attention on labour matters and the traceability of raw materials, he said.
“The US is the world's largest single market with very high competition, particularly on price. Thus, we have to differentiate products rather than focus on competition," he said.