Cut in food sector growth
The Nation (12 October 2007)
The Federation of Thai Industries (FTI), the Board of Trade of Thailand and the National Food Institute of Thailand have cut the growth projection for the food industry this year from 10 per cent to 7.8 per cent. The move is the result of many negative factors, both local and international. National Food Institute executive director Yuthasak Supasorn said food exports had been affected by the baht's strength, shortages of raw materials, rising production costs, stricter trading barriers and a slowdown in the US market. However, exports of food products are expected to reach Bt608.047 billion this year, up 7.8 per cent from last year, because agro-products like rice, sugar, palm oil, tapioca, fruits and vegetables have recorded high growth.
He said exports of food products in the fourth quarter would grow more than in the first nine months, because the baht was more stable. Total exports of fishery products and canned pineapple will tend to drop in the fourth quarter, due to a severe shortage of raw materials and rising prices. The Manufacturing Production Index (MPI) increased 3 per cent year on year in the first eight months, driven mainly by refined and raw sugar. Meanwhile, the MPI for the canned-tuna and canned-pineapple industries dropped year on year. The Office of Agricultural Economics predicted that pineapple output would decline 14 per cent from last year. The price of pineapple in July was Bt4.68 a kilogram, up from Bt1.64 in July 2006. Due to tight supply, the price of tuna in the global market reached US$1,450 (Bt49,600) per tonne in August, up more than 60 per cent from the end of last year. Rice Exporters' Association president Chookiat Ophaswongse said rice exports in the first three quarters totalled 6.15 million tonnes, up 14 per cent year on year. He said total rice exports would surge in the fourth quarter, from an average of 650,000 tonnes a month to 850,000 tonnes, because Vietnam and India recently announced bans on rice exports, due to insufficient local supply caused by rapidly changing weather. The association plans to boost rice exports to 9 million tonnes next year, while Vietnam plans to export 5 million tonnes and India 4 million tonnes. Paiboon Ponsuwanna, chairman of the FTI's Food Processing Industry Club, said Japanese firms in the seafood industry were planning to move half of their production in China to Thailand, due to better-quality products. He declined to provide more details. Paiboon said he would meet representatives of the Japan Chamber of Commerce and Japan External Trade Organisation next month, in order to promote the Thai food-processing industry's potential and draw Japanese operators to invest here.
The Nation (12 October 2007)
The Federation of Thai Industries (FTI), the Board of Trade of Thailand and the National Food Institute of Thailand have cut the growth projection for the food industry this year from 10 per cent to 7.8 per cent. The move is the result of many negative factors, both local and international. National Food Institute executive director Yuthasak Supasorn said food exports had been affected by the baht's strength, shortages of raw materials, rising production costs, stricter trading barriers and a slowdown in the US market. However, exports of food products are expected to reach Bt608.047 billion this year, up 7.8 per cent from last year, because agro-products like rice, sugar, palm oil, tapioca, fruits and vegetables have recorded high growth.
He said exports of food products in the fourth quarter would grow more than in the first nine months, because the baht was more stable. Total exports of fishery products and canned pineapple will tend to drop in the fourth quarter, due to a severe shortage of raw materials and rising prices. The Manufacturing Production Index (MPI) increased 3 per cent year on year in the first eight months, driven mainly by refined and raw sugar. Meanwhile, the MPI for the canned-tuna and canned-pineapple industries dropped year on year. The Office of Agricultural Economics predicted that pineapple output would decline 14 per cent from last year. The price of pineapple in July was Bt4.68 a kilogram, up from Bt1.64 in July 2006. Due to tight supply, the price of tuna in the global market reached US$1,450 (Bt49,600) per tonne in August, up more than 60 per cent from the end of last year. Rice Exporters' Association president Chookiat Ophaswongse said rice exports in the first three quarters totalled 6.15 million tonnes, up 14 per cent year on year. He said total rice exports would surge in the fourth quarter, from an average of 650,000 tonnes a month to 850,000 tonnes, because Vietnam and India recently announced bans on rice exports, due to insufficient local supply caused by rapidly changing weather. The association plans to boost rice exports to 9 million tonnes next year, while Vietnam plans to export 5 million tonnes and India 4 million tonnes. Paiboon Ponsuwanna, chairman of the FTI's Food Processing Industry Club, said Japanese firms in the seafood industry were planning to move half of their production in China to Thailand, due to better-quality products. He declined to provide more details. Paiboon said he would meet representatives of the Japan Chamber of Commerce and Japan External Trade Organisation next month, in order to promote the Thai food-processing industry's potential and draw Japanese operators to invest here.
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