FTI mulls lowering food export outlook

The Federation of Thai Industries (FTI) aims to downgrade its 2020 export projection for food products after witnessing a huge impact from the coronavirus outbreak, largely affecting overseas shipments to China.

The current forecast is 1.02-1.06 trillion baht, with China the biggest destination for Thai food producers.

Visit Limlurcha, chairman of the FTI’s food processing industry club, said the epidemic has directly affected transport and logistics methods, as many cities and provinces in China have shut their supply lines.

“Food products cannot be delivered to stores and customers as planned,” he said. “The FTI and the Thai Food Processors’ Association are considering cutting the export projection for the food sector.”

Mr Visit said operators are closely monitoring the epidemic’s impact, with a new projection likely to be issued in March.

In 2019, Thailand exported food products valued at 1.02 trillion baht, down 3.8% year-on-year and accounting for 76.5% of overall export value.

Food shipments to China last year totalled 151 billion baht, or 14.7% of total food export value.

The No.2 market was the CLMV (Cambodia, Laos, Myanmar, Vietnam), totalling 143 billion baht and accounting for 14%. Other destinations included Japan (135 billion baht), Southeast Asia ex CLMV (122 billion baht), the US (106 billion baht), Europe (83.1 billion baht) and Middle East/North Africa/Afghanistan (42 billion baht).

“Food producers are seeking new markets to offset declining shipments to China, but the industry will soon resume normal sentiment,” Mr Visit said.