The government believes pineapple prices are set to recover by the end of next month after efforts to connect modern trade, fresh markets and state Thong Fah Pracha Rat low-cost outlets nationwide to help absorb existing supply.
Whichai Phochanakij, deputy permanent secretary for commerce, said yesterday the pineapple price slump will ease soon after the government pledged to pick up the pace of moving the fruit to other provincial markets through modern trade, supermarkets, Thong Fah Pracha Rat low-cost shops and famous community markets.
The Commerce Ministry also promised to help cooperate with feedmeal factories to help absorb substandard produce.
Domestic pineapple prices earlier in the year fell to 2-2.40 baht per kilogramme, far below growers' production cost of 4 baht per kg. The drop stems largely from oversupply thanks to cold weather at the beginning of the year and lower international demand.
Thailand is expected to produce 2.24 million tonnes of pineapples this year, nearly equivalent to last year's harvest, with the major supply scheduled between May and June. But demand, both at home and abroad, is only estimated at 1.9 million tonnes, down from 2 million last year.
Key export markets for Thai pineapples include the US, Germany, the United Arab Emirates, the Netherlands and Australia.
Commerce Ministry statistics put Thai exports at 152 million baht worth of fresh pineapples last year, up 595% from a year before, with the shipment of frozen pineapples totalling 89.2 million baht in 2017, up 2.36%, and processed pineapples worth 9.50 billion baht, up 259%.
But exports of canned pineapples dropped 38.6% in 2017 to 12.5 billion baht, largely blamed on the loss of favourable export treatment under the EU's Generalised System of Preferences.
"We're hopeful the price slump will improve from the end of July," said Mr Whichai.
In a related development, SET-listed BCPG Plc, the renewable energy arm of mostly state-owned Bangchak Corporation, yesterday agreed to buy 200 tonnes of pineapples from three provinces: Prachuap Khiri Khan, Phetchaburi and Ratchaburi.