Food association optimistic for 2-5% export hike in 2020
Exports of raw foods declined by 2 per cent in 2019 while those of processed foods increased by the same amount, resulting in a 1.3-per-cent drop for the overall food industry, according to Wisit Limleucha, president of the Instant Food Manufacturers Association.
“This decrease is the lowest in four years and the main factor was the baht’s appreciation, which raised production costs,” he said this week.
But this year could see food exports grow by 2-5 per cent, Wisit speculated, with processed foods in particular benefiting from more positivity in the global market as the United States and China negotiate the second phase of their trade agreement.
“The raw foods sector is less likely to grow due to the drought, which could limit domestic production,” he said.
“Chicken is the most promising product this year since Thailand is free of the bird flu epidemic affecting some of our competitors.
“Meanwhile the spread of African swine fever in China last year has driven up demand there for alternatives to pork.”
The Thai food industry is valued at Bt3 trillion per annum, with a third of that generated by exports, Wisit noted.
“There is still room for the food industry to grow, especially on the domestic front,” he said. “Thailand has 70 million consumers domestically and more than 40 million foreign tourists a year, so the total is over 100 million.”
