Thai food exports likely to exceed Bt1 trillion for first time

BANGKOK, February 20 (TNA) - The value of Thai food exports is likely to exceed 1 trillion baht for the first time this year, based on an assumption that the Thai currency stands at 29.50 baht a US dollar on average in 2013. Thai food exports have been targeted to reach 1.03 trillion baht in 2013, a 6 per cent year-on-year growth, on the condition that the average baht value stands at 29.50 baht per US dollar, thanks to the expanding world economy, at 3.5 per cent, and the recovering Asian economy. However, Phet Chinnabut, Director of the National Food Institute (NFI), cautioned on Wednesday if the Thai baht appreciated by one baht per US dollar, to 28.50 baht against the greenback, the value of Thai food exports should drop by 20.4 billion baht or 2 per cent to just over 1 trillion baht this year, representing a 3.9 per cent year-on-year expansion. Phet assessed that the baht appreciation would have strong impacts on Thailand's exports of cassava products, rice, processed vegetables and fruits, as well as processed fish, shrimps and seasonings; while outstanding Thai exports should be poultry, cassava, dog and cat feeds, canned and processed fish, seasonings and processed tuna. Phet acknowledged that the value of Thai poultry exports alone is expected to increase by 14.5 per cent this year, to some 82 billion baht, as the 27-member European Union or EU has agreed to import Thai fresh chicken and Japan and South Korea may import the Thai food product as well in the near future; while Thai exports of cassava products will particularly benefit from purchase orders from China. The NFI chief noted that drought has, however,reduced the quality of sugar made from sugarcane and China is likely to cut its sugar imports from Thailand due to rising domestic supply, and that drought should also affect Thai exports of fresh vegetables and fruits. Meanwhile, Pornsilp Patcharintanakul, head of the agricultural and food business committee of the Board of Trade of Thailand, told journalists that drought remains the biggest risk factor of the Thai food industry, as it reduces the amount of raw materials, apart from impacts from the current baht appreciation and the government's new daily minimum wage hike to 300 baht in all areas nationwide, as of January 1, 2013. (TNA)