InfoQuest (August 17, 2020) - Exports of non-processed agricultural products declined by 3.7 percent in H1 while those of processed foods increased by 0.1 percent, resulting in a 2-percent drop for overall export of food products in the first half of 2020 to 505.58billion baht, according to Mrs. Anong Paijiprapapon, President of the National Food Institute.
The exports of Thai food products have contracted by 9.1 percent during the first quarter but then bounced back to an expansion of 4.9 percent in the second quarter due to the increased demands from trading partners.
The exports of ready-to-eat products, canned-tuna, spices, and fresh and processed chicken have increased by 15.8, 10, 6.6, and 2.1 percent respectively. Nevertheless, the exports of coconuts, rice, shrimp, sugar, tapioca starch have decreased by 15, 14.9, 13.2, 12.8, and 12.2 percent respectively. The drop is mainly to lower demand from hotels and restaurants during the strict lockdown period in the first half of the year.
The exports to China, the US and Oceania have increased by 27.4, 14 and 8.5 percent respectively in the first half of 2020. However, the exports of Thai foods to ASEAN, Japan, Europe, Africa and the Middle East, have dropped by 7.4, 2.5, 11.4, 33.3 and 12.5 percent respectively. This would make up to an expansion of 0.8 percent with a value of 1.02 trillion bahtfor the whole year.
They expect the expansion to be better in the second half as more and more countries are easing up on their lockdown and businesses are reopening, it have edged up a bit on higher global demand. Demand from China is expected to lead the expected “jump” in demand, Anong added.
She said that the exports of Chicken, canned-tuna, spices, ready-to-eat products, and pineapple will continue to do well in the second half of this year. But, the exports of rice, sugar, tapioca starch, shrimp, and coconuts are expected to continue to drop in the second half, she added.
With an increased in demands from trading partners, Anong said the exports of Thai food products could increase by 3.6 percent in the second half of 2020 to 519.42 billion baht, based on the assumption that the baht will be trading around 31-32 baht per US dollar and the raw foods sector is likely to grow due to the drought mitigation.
Source: InfoQuest, by Nisarat Wichiensri/Kasamarporn/Rachada, translated by Xinhua Silk Road
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