Food manufacturers expect business to improve in the next three months as international orders increase and domestic consumption rebounds.
Czech chefs Jan Davidek (left) and Antonin Bradac win the Thailand Culinary World Challenge 2014, organised yesterday by the National Food Institute and the Industry Ministry to promote Thai food. Chefs from 10 nations joined the contest to vie for a US$10,000 first prize and a trophy from HRH Princess Maha Chakri Sirindhorn. APICHIT JINAKUL
"The National Food Institute's CEO Food Index found medium-sized and large businesses, especially those that are export-oriented, had higher confidence in the industry," said NFI president Petch Chinabutr.
He said food manufacturers believed over the next three months, the sector would improve as domestic consumption rebounded, reflected by increasing sales at department stores, supermarkets and retailers after placing more orders with food producers, said Mr Petch.
Major markets for the Thai food industry include the US, Europe, Japan, China and Asean.
Food sectors with positive outlooks include rice, shrimp, frozen and processed chicken, and condiments.
Confidence in the rice sector stems from improved market sentiment about the quality of Thai rice, prompting higher orders from both domestic and international markets, Mr Petch said.
Also, a decline in the price of Thai rice except for Hom Mali has made it more competitive in the market.
A supply shortage remains a concern for the shrimp industry, but confidence is improving as operators maintain their market share in major markets such as Japan, the US and Europe.
The sector expects the supply shortage to ease in the third quarter, said Mr Petch.
He said the chicken industry projects more orders from Europe, the Middle East, South Korea, Japan and Asean.
Combined with increased domestic demand, this will push Thai producers to ramp up production over the next three months.
Demand for canned pineapple has risen as hotter weather in the US and Europe drives consumption of canned Thai fruits, but demand over the next three months is expected to decline as the temperature drops.
In the short term, the main concern of the food industry is more stringent inspections under Illegal Unreported and Unregulated Fishing (IUU) in the seafood sector.
The IUU regulation places a higher burden on producers and exporters of processed seafood including reporting the product's origin.