This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Although agriculture accounts for only six percent of GDP, the sector employs over 31 percent of the country’s labor force. Thailand is the world’s largest exporter of tapioca products, rubber, frozen shrimp, canned tuna, and canned pineapple. Combined, rice, cassava, rubber, sugar, corn, and palm oil account for around three-quarters of the market value of Thai agriculture.
In 2019, Thailand was the 14th largest export market for U.S. agricultural products (including seafood and forestry products) and the 11th largest supplier for U.S. agricultural imports. U.S. exports of agricultural and related products to Thailand in 2019 decreased by 14 percent, from about $$2.24 billion in 2018 to $1.9 billion. Most of the decrease can be attributed to a fumigation dispute over the import of U.S. dried and distiller grains (DDGs). In addition, the U.S.-China trade war lowered prices of U.S. soybean and wheat exported to Thailand due to an oversupply of product in the world market. Bulk commodities (i.e., wheat, cotton, soybean, etc.) represented 47 percent of U.S. agricultural exports to Thailand, followed by intermediate products (26 percent); consumer-oriented products (21 percent); and distilled spirits, fishery, and forest products (6 percent).
Thailand implements high tariffs on agricultural imports with the bound tariff rate averaging 34.7 percent ad valorem. This presents a significant impediment for U.S. agricultural exports, particularly for consumer-oriented products like dairy products, meats, fresh fruit, snack foods, processed vegetables, and pet foods. Other U.S. competitors have lower tariffs than the United States due to free trade agreements with Thailand; these include Australia, New Zealand, Japan, and China. Non-tariff trade barriers include non-transparent tariff-rate-quota administration, arbitrary import permit controls, and food standards that are not harmonized with international standards.
U.S. imports of Thai agricultural fishery and forest products in 2019 increased by 5.5 percent from $3.98 billion in 2018 to $4.2 billion. Consumer-oriented products accounted for the largest share of U.S. agricultural product imports from Thailand in 2019 at 40 percent, followed by seafood products 29.5 percent, bulk commodities 24.5 percent, intermediate products 3 percent, and forest products 2 percent, respectively
Table: Thailand’s Agricultural Sector
|
Unit: U.S. $1,000 |
2017 |
2018 |
2019 |
2020 (estimated) |
|
Total Local Production |
35,663,000 |
37,518,000 |
43,512,000 |
42,206,640 |
|
Total Exports |
42,580,000 |
42,948,000 |
43,463,000 |
39,116,700 |
|
Total Imports |
15,847,000 |
16,706,000 |
17,163,452 |
12,700,950 |
|
Imports from the US |
1,957,000 |
2,243,000 |
2,247,900 |
2,135,505 |
|
Total Market Size |
8,930,000 |
11,276,000 |
17,212,452 |
15,790,890 |
|
Exchange Rates |
33.94 |
33.94 |
31.05 |
31.5 |
(total market size = (total local production + imports) - exports)
Leading Sub-Sectors
Leading sub-sectors include textiles, wheat milling, soybean crushing, animal feed operations as well as the hospitality industry, food retailing, and food processing.
Opportunities
Thailand is a growing destination for U.S. agricultural exports due to the expanding economy, increasing consumer incomes, changing lifestyles, and the growing, vibrant tourism industry.
Best market prospects for U.S. exports include soybeans, soybean meal, cotton, distilled dried grain solution (DDGS), protein for animal feed, wheat, meat and meat products, dairy products, fresh fruit, dried fruits, nuts, starches, dehydrated potatoes, food additives, colorings, flavorings, juice concentrates, and other baking ingredients.
Web Resources
U.S.-Thailand Agricultural Trade
Doing Business in Thailand (Agro-Food Products)
Food Service – Hotel, Restaurant, and Institutional Report