Page 24 - FoodFocusThailand No.215 FEBRUARY 2024

SPECIAL REPORT

F acto rs sh ap i ng exp ort Union will likely continue to dwindle. This decline can be attributed, in part, to the
opportunities and risks for Thai elevated baseline, which was a consequence of accelerated stockpiling in the previous
food products year. Furthermore, the fragile state of consumer purchasing power also contributes
The growth of the global population has to this downward trend.
spurred an increasing need for food, Even though Thailand’s rice export market is poised to benefit from India’s decision
creating a promising opportunity for to suspend rice exports, exporters must remain cautious due to several factors. One
Thailand, commonly hailed as the “kitchen significant concern is the rising cost of rice production, which has kept Thai rice prices
of the world”. To welcome this opportunity, higher than those of neighboring countries. Additionally, the looming El Niño threat
Thailand stands well-prepared on multiple in the first half of 2024 presents a potential challenge that exporters must factor into
fronts. Our agricultural and food industry their strategies. On the other hand, the outlook for fresh fruit products, including
is notably robust, characterized by chilled and frozen fruits, is notably optimistic. Thai fruit consumption is on the rise,
expertise in successful food processing, and the introduction of the China-Laos high-speed rail promises enhanced
innovation, and substantial potential for transportation capabilities, further favoring exports. Yet, it’s worth noting that increased
exports. A testament to this is the competition for shipping products to China is on the horizon since Vietnam and the
attendance at THAIFEX-Anuga Asia in Philippines have successfully expanded their presence in the fresh durian export
May 2023, where it became evident that market to China, emphasizing the necessity for Thai exporters to remain adaptable
investors and food product importers from and competitive in this dynamic marketplace. Regarding exports of fresh, chilled,
across the globe, particularly from China, and frozen chicken to the European Union, these continue to thrive, notably benefiting
have shown keen interest in our thriving from the Russia-Ukraine conflict. Furthermore, the demand for Thai-processed chicken
food industry. in the Japanese market is making a satisfactory recovery.
These findings match the analysis by However, several crucial factors demand close monitoring, including the sluggish
the Krungthai COMPASS Research growth of the Chinese economy, rising labor costs, a strengthening Thai baht, and
Center about where agricultural and agro- the impact of stricter environmental regulations on key trading partners. In the United
industrial exports are heading. While the States, despite a 4.47% decline in the value of food and beverage imports in the first
study suggests that, in the near future, half of the year, totaling USD 100 billion, the expectation of economic stability in the
exports of agricultural products and the latter half may drive demand for imported consumer goods, particularly during year-
agro-industry might experience a end festivals, potentially sustaining the value of food and beverage exports at levels
contraction, there are notable exceptions similar to the previous year. A positive trend is observed in health-conscious, eco-
in products that continue to exhibit strong friendly, and socially responsible food and beverage products, particularly those made
growth. Notably, rice and sugar, as well with plant-based proteins like beans, mushrooms, and jackfruit pulp, where Thai
as chilled and frozen fresh fruits, stand entrepreneurs possess a competitive advantage in raw material resources for
out in this regard. Of particular interest is production.
the surge in exports to the Chinese
market, driven by a heightened demand Summary of important food export directions in 2023-2024
for food products like chicken and fruit. In 2023, the Thai food export landscape underwent a thorough evaluation by key
Conversely, it is anticipated that exports entities, including the Thai Chamber of Commerce, the Federation of Thai Industries,
to the United States and the European and the National Food Institute. Their collective analysis forecasts an estimated value
of around 1.5 trillion baht, signifying a notable 2.1 percent growth. Should these
projections materialize, it would mark an unprecedented high in Thailand’s export
records, painting an optimistic picture for the food export industry. Beyond traditional
strongholds like China and the United States, Thai food exports are making inroads
into emerging markets such as South Asia, The Gulf Cooperation Council (GCC),
Latin America, and the Commonwealth of Independent States (CIS). These markets
have shown substantial growth, and with a well-crafted market entry strategy, there’s
considerable untapped potential to elevate the country’s export volume.
Looking to the future, the prospects for 2024 are bright. The current positive
trajectory implies a steady expansion of Thailand’s overall merchandise exports. This
promising trend has been apparent since August 2023, reflecting the country’s
resilience and adaptability in the face of economic challenges. As Thailand continues
to diversify its export portfolio and tap into burgeoning markets, it appears
well-positioned for sustained growth, indicating a promising outlook for the years
ahead.

More Information Service Info C002

เอกสารอ้างอิง / References
https://www.ditp.go.th/en/post/143763
https://www.infoquest.co.th/2023/325209
https://www.prachachat.net/economy/news-1287422
https://www.prachachat.net/economy/news-1401953
https://www.prachachat.net/economy/news-1415978
https://www.youtube.com/watch?v=JnUQLjo1cJU
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