The value of Thailand's food exports is expected to increase by 8.8% year-on-year to 1.6 trillion baht this year, driven by growing global demand and a decrease in the prices of raw materials, says the National Food Institute (NFI).
"Raw materials such as tuna, sugar, soybeans, and wheat have seen a decrease in price, which benefits the food processing industry," said Supawan Teerarat, president of the NFI.
During the first six months, the value of Thai food exports increased by 9.9% year-on-year to 852 billion baht.
Food manufacturers and exporters will continue to face challenges this year, including higher freight rates resulting from geopolitical conflicts and the impact of a sluggish US economy.
The US economy is expected to enter a cyclical slowdown from late this year through to 2025, KGI Securities (Thailand) reported earlier.
These factors would put more pressure on Thailand's export sector, said the NFI.
In the second half of this year, the value of food exports is expected to increase by 7.8% year-on-year to roughly 797 billion baht, with the value in the third quarter forecast to reach around 395 billion baht before rising to 402 billion baht in the final quarter of 2024, said Ms Supawan.
The value of Thailand's food exports last year reached 1.51 trillion baht, driven by the global market's increasing demand for food reserves due to the drought crisis, high inflation, geopolitical conflicts and economic slowdown.
Thailand's trading partners have concerns regarding food security issues. This could drive up demand for food, but at the same time the country will face stronger competition in the world market.
Ms Supawan is confident Thailand can secure more food purchase orders due to the quality of its products, which has earned the trust of customers.
According to the NFI, food trade between Thailand and China is causing a concern.
Thailand has been importing an increasing amount of agricultural produce from China, such as fruits and vegetables, negatively impacting Thai farmers.
However, Thailand has maintained a trade surplus with China, amounting to 272 billion baht last year. This resulted from exporting food products worth 370 billion baht to China and importing Chinese food products worth 98 billion baht.
In the first half of this year, Thailand reported a trade surplus with China amounting to roughly 132 billion baht.
