Agricultural businesses are recommended to diversify export markets, reduce risk and increase the value of food products and processing, as a Commerce Ministry study found the majority of export-oriented agricultural products are commodities or those with only basic processing.
According to Deputy Commerce Minister Napintorn Srisunpang, overall exports amounted to US$285 billion in 2023, with agricultural and agro-industrial products accounting for 17.3% of the total, industrial exports making up 78.6%, and mineral and fuel products accounting for the rest.
Exports of agricultural and agro-industrial products tallied $49.2 billion last year (1.69 trillion baht), while industrial product exports amounted to $224 billion.
Of the exports of agricultural and agro-industrial products, the former represented $26.8 billion (920 billion baht) and the latter made up $22.4 billion (770 billion baht).
Among agricultural exports, the top five highest value products were fruits at $6.94 billion (25.9% of agricultural export value), followed by rice at $5.14 billion (19.2%), chicken at $4.08 billion (15.2%), cassava at $3.70 billion (13.8%) and rubber at $3.65 billion (13.6%).
These top five products collectively accounted for 87.7% of all agricultural exports.
The top five agricultural products with the highest export value growth were fresh chicken eggs (72.4% rise year-on-year), rice (up 29.3%), fruits (up 22.8%), meat and parts of consumable animal meat (up 6.2%) and shrimps, such as those used for breeding (up 6%).
Regarding export markets for agricultural products, the top five were China at $11.3 billion (42% of the total), Japan at $3.21 billion (12%), the US at $1.51 billion (5.6%), Malaysia at $1.19 billion (4.4%) and Indonesia at $940 million (3.5%).
Collectively, these top five markets accounted for 67.5% of total agricultural exports.
In terms of export value growth, the top five markets were the UK (up 114%), followed by the Philippines (up 63.1%), South Africa (up 35.4%), Laos (up 18.5%) and Singapore (up 11%).
"The study found that the majority of agricultural exports consist of commodities or products with only basic processing. There is a need to expedite the promotion and push for Thailand to export high-value agricultural products and increase agro-industrial products such as future food, processed organic agricultural products, and extracts from agricultural production," said Mr Napintorn.
"With the top five agricultural exports -- fruits, rice, chicken, cassava and rubber -- accounting for a combined 87.7% of agricultural exports, this indicates that Thailand still heavily relies on exporting just a few items."
"Furthermore, when looking at the top five export markets which represent up to 67.5% of total agricultural exports, it is evident that Thailand is dependent on a handful of markets, especially China, which holds a substantial 42% share of total agricultural export value," he said.
"Therefore, it is advisable to diversify both the range of agricultural products and export markets to mitigate the risks associated with relying too heavily on specific products and markets."
According to Mr Napintorn, the top five highest value agro-industrial exports were canned and processed seafood worth $3.48 billion (15.5% of the total), refined sugar at $3.45 billion (15.4%), animal feed at $2.47 billion (11%), wheat flour and other processed foods at $2.43 billion (10.9%) and beverages at $2.04 billion (9.1%).
Collectively, these top five categories account for 61.9% of total agro-industrial exports.
The top five agro-industrial products with the highest export value growth were cocoa and condiments (up 25.6%), canned vegetables and processed vegetables (up 19.2%), refined sugar (up 10%), ice cream (up 7.3%) and seasonings (up 7.1%).
As for export markets for agro-industrial products with the highest value, the top five were the US at $2.87 billion (12.8% share), China at $2.03 billion (9.1%), Japan at $1.71 billion (7.6%), Cambodia at $1.45 billion (6.5%) and Indonesia at $1.38 billion (6.2%).
Collectively, these top five countries account for 42.2% of the total export value of agro-industrial products.
"The export of agricultural and agro-industrial products can generate income for the country and distribute income to farmers, who account for 46% of the population. Additionally, it helps absorb excess production that cannot be consumed domestically," said Mr Napintorn.
"However, all relevant sectors must collaborate to support the sustainable growth of the agricultural sector, particularly by utilising research and technology to increase productivity and reduce costs. This includes restructuring agricultural exports, aiming for higher value agricultural exports, diversifying products for export and exploring new export markets while maintaining existing ones, such as the US, China and Asean," he added.
"Moreover, it is essential to enhance the quality and standards of exported products, adhere to new trade regulations and implement environmentally friendly practices, such as avoiding deforestation and reducing greenhouse gas emissions, to meet the demands of trading partners."