Food exports expected to increase by 7.1%
A recovery in global demand is taking shape
Workers prepare shrimp for export at a factory in Songkhla. Wichan Charoenkiatpakul
Ministry of Industry expects food exports in 2021 to increase 7.1% to 1.05 trillion baht in value despite the impact of Covid-19, thanks to growing demand from the global market .
Declining food stock levels in Africa, Asia and the Middle East during the pandemic also pushed those regions to import more food products.
From January to July, Thai food exports increased 4.5% year-on-year to reach 622.70 billion baht in value, as many countries and regions including China, the United States and Europe, have relaxed lockdown measures as more of their citizens and residents have been vaccinated. against the coronavirus.
âFood demand in China has increased by 40% due to its economic recovery, while the United States and Europe will experience a similar trend, with an increase in seafood imports,â the Minister said. Suriya Jungrungreangkit Industry.
Global food demand has become sluggish during the lockdown as many countries have restricted some businesses, especially restaurants, in an attempt to control the spread of the virus.
Anong Paijitprapapon, president of the National Food Institute (NFI), said Thailand’s food industry is expected to grow in the second half of this year, alongside the global economic recovery.
The value of food exports from August to December is expected to rise 11 percent to 427.30 billion baht, from 384.77 billion baht in the same period last year, according to NFI.
The increase will result from higher levels of activity in the foodservice segment and expansion of marketing channels.
“Thai seafood, shrimp, canned pineapple, cassava, coconut and coconut milk, seasonings as well as ready-to-eat products are currently in demand in the world market and demand tends to increase, âMs. Anong said.
The lower baht is also good for food exporters as they typically use raw materials in the country.
However, NFI has warned of a possible negative impact on Thai food exports if Covid-19 transmission continues unabated in factories.
A higher freight rate is another factor that is likely to affect Thai food exports as it will increase logistics costs and cause many countries to delay food orders.
In 2019, before the pandemic, Thailand was the 11th largest exporter of food products to the world market.