In a landscape defined by scarcity and rising nationalism, Thailand stands to gain significantly from the escalating protectionism seen across Asia. As global food prices soar to multi-year highs due to pandemic recovery and geopolitical tensions, nations are tightening their belts, prioritizing domestic needs over international trade. This wave of protectionism has inadvertently positioned Thailand, a major exporter of sugar, chickens, and rice, as a principal beneficiary.
Recent moves by Malaysia and India to restrict their poultry and sugar exports have created an opportunity for Thailand to fill the gap. The Thai sugar industry, rebounding from years of drought, anticipates a 40% increase in exports this season, buoyed by the global price surge. The baht’s depreciation to a five-year low further enhances the competitiveness of Thai exports on the global stage.
Rice, Thailand’s staple export, is projected to hit a four-year high of 8 million metric tonnes, driven by robust demand from countries like Iraq. However, this surge in prices may lead some buyers to adopt a cautious approach, monitoring the volatile market before making commitments.
Poultry, the country’s second-largest food export after rice, is also set to see a boost. The Thai Broiler Processing Exporters Association forecasts a rise in shipments to 950,000 tonnes, capitalizing on strong demand from Europe and Japan as these regions ease their economic restrictions. Nonetheless, China’s ongoing lockdowns pose a concern for future demand.
Sirivuthi Siamphakdee, a director at Kaset Thai International Sugar Corp, encapsulated Thailand’s strategic advantage, stating, “If the war and the food-supply crunch continue, food prices will remain high, and that will benefit us. Thailand is unlikely to suffer from food shortages like other countries as it’s the kitchen of the world
In conclusion, Thailand’s agricultural sector is poised to leverage global market disruptions, transforming challenges into opportunities. By navigating these turbulent times with strategic foresight, Thailand can solidify its position as a critical player in the global food supply chain.