Page 62 - FoodFocusThailand No.143_February 2018

SPECIAL REPORT

Food Industry Outlook 2018

Current Situation and Future Trends

in Agricultural and Food Businesses

The latest Food Industry Outlook 2018, which was jointly briefed
by 3 organizations in agricultural and food businesses; Thai
Chamber of Commerce and Board of Trade of Thailand (BTT), the
Federation of Thai Industries (FTI), and the National Food Institute
(NFI), reported the Thai Food Industry in 2017 and the industry’s
prospect in 2018. Representatives from the 3 organizations, Dr.
Poj Aramwattananont, Vice Chairman of the BTT, Boonpeng
Santiwattanatam, Chairman of the Food Processing Industry Club,
FTI, and Yongvut Saovapruk, President of NFI, Ministry of Industry,
co-chaired the stage for the press conference.

Agriculture and Food Businesses in 2017
Upon the collaboration of the 3 organizations, the NFI is responsible for gathering
data from all relevant sectors under the operation of the Food Intelligence Center. The Thai food industry
It is found that the manufacturing sector of the Thai Food Industry in 2017 expanded in 2018 is forecasted to
3.0%, presumably increases up to 32.5 million tons, and worth THB 1 trillion. The
growth rate for the sector is 4.5-5.3%, respectively. The figure yields less than expand continually at
previously forecasted at 33 million tons, and THB 1.03 trillion in value, after exports
of many products such as shrimp, canned tuna, cassava, and fruit juices, failed to
meet target. Strong Thai baht also influence decreasing export value, despite the 7.0% (YoY),
10% growth of export value in US dollar.
CLMV countries remain as Thailand’s top export destinations, accounting for reaching a total export
16.6% of overall exports, followed by Japan 13.5%, ASEAN-5 11.6%, the United
State 10.6%, Africa 9.3%, China 9.0%, the European Union 6.0%, the Middle East value of
4.2%, Oceania 3.3%, the United Kingdom 3.0%, and South Asia 1.6%. Almost all
of Thailand’s main export market are expanding (year on year) except the ASEAN-5, THB 1.07 trillion.
which declined 10.7% following decreasing exports of canned pineapple and frozen
seafood, and the United Kingdom, which contracted 10.9% after the economic
slowdown and strong Thai baht against the UK’s pound sterling.
Rising Star Products
Yongvut Saovapruk, President of NFI, Ministry of Industry, added that “Although steadily recovering economy of Thailand’s major trading
the exports of many key products are in decline, the exports of many new products partners, and the prospect of increasing yields of agricultural
are highly expanding, and these products can become the rising stars for Thailand. products in 2017/18 year due to high volume of rainfalls.
Fresh fruits excluding coconut, for example, gains THB 72,340 million in market Government’s support for the agricultural sector and grassroots
value and has been averagely growing in the past 5 years (+23%), followed by economy both for agriculturalists, SMEs, and OTOP also
energy drinks (THB 22,520 million in market value, +10%), bakery (THB 13,533 played the part.
million in market value, +11%), dairy (THB 10,469 million in market value, +6%), In 2018, challenges threatening the growth of the industry
food supplement excluding vitamins (THB 3,201 million in market value, +6%), and are constant appreciation of Thai baht since 2017, increasing
ice-cream (THB 2,122 million in market value, +5%). Most of these products are energy price affecting production costs and transportation fees,
destined to Thailand’s neighboring countries in ASEAN. Remarkably, the 3 labor shortage in the agricultural sector and the industrial
organizations are planning to promote these products more heavily, especially the sector, and possible increasing in labor costs. Notably, these
factors could also be affecting the country’s overall
products made by SMEs, as well as other potential products”.
competitiveness.
Therefore, the next step for the food industry is to promote
Thai Food Industry Prospect in 2018 agricultural product processing and food processing industry,
The Thai food industry in 2018 is forecasted to expand continually at 7.0% (YoY), which is among the 10 target industries aimed to be promoted
reaching a total export value of THB 1.07 trillion. Top 5 exports are rice, chicken, by the national policy. The government, the NFI, the BTT, and
granulated sugar, shrimp, and canned tuna, while the top 5 rising stars are coconut the FTI are pushing forward the investment in the industry,
(+17.6%), ready-meal (+10.0%), shrimp (+9.3%), granulated sugar (+6.8%), particularly in the Eastern Economic Corridor, and are
seasonings (+6.8%), chicken (+6.6%), and fruit juices (+6.6%). expecting concrete success.
Positive and Negative Risks for the Thai Food Industry in 2018
The Thai food industry outlook in 2018 also highlight positive influences from the
62 FOOD FOCUS THAILAND FEB 2018