Food exports are expected to increase by 8.4% this year

Thailand’s food outlook remains bright, with exports expected to grow by 8.4% this year, driven by higher global demand and higher prices for raw materials, energy and logistics.

According to Anong Paijitprapaporn, director of the National Food Institute, food exports are expected to reach 1.2 trillion baht this year, which is expected to be a new high for food exports.

The forecast was made assuming the baht averaged 33.50 baht to the US dollar, with global economic growth of 4%, crude oil prices at $100 a barrel and global food prices rising by 3.5%.

“The main supporting factors are the increased demand after the global population received greater Covid-19 vaccine coverage and higher immunity,” she said.

“Businesses in tourism and related services like restaurants and hotels are gradually recovering after concerns over Covid-19 began to ease, an easing of state security measures and a weak baht.”

The Thai Chamber of Commerce, the National Food Institute and the Federation of Thai Industries (FTI) released a joint announcement yesterday that food exports rose 11.8% last year to 1.107 billion baht or 34.89 billion dollars, up 11.5% a year earlier.

Thailand remains the world’s 13th largest food exporter, unchanged from the previous year.

The better-than-expected results were largely attributed to easing concerns over the impact of Covid-19, the easing of stringent security measures by Thailand’s major trading partners, leading to more economic activities robust and demand for food from catering and hotel service companies.

The depreciation of the baht has also offered positive results for the food export sector.

However, the market share of Thai food exports in the global market fell to 2.3% in 2021 from 2.32% in 2020.

Last year, the country’s food exports increased in most markets except the United States, Africa, Oceania and the United Kingdom.

Currently, China is the top importer of Thai food products with a 24.5% share valued at 271.674 billion baht, up 50% from the previous year.

In 2021, the export volume of agricultural products and food raw materials reached 506.97 billion baht, up 25.5%, accounting for 45.8% of total food exports, compared to 40.8% the year. former.

Exports of processed food products amounted to 600.48 billion baht, up 2.4%, accounting for 54.2% of overall food exports, up from 59.2% the previous year.

Export food products that saw an increase in trade volume include tapioca starch (+34.3%), shrimp (+10.8%), coconut products (+7 .7%), seasonings (+13.3%), ready-to-eat foods (+7.7%). %) and pineapple (+31.5%).

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