Miller Magazine Issue: 154 October 2022

90 COUNTRY PROFILE MILLER / OCTOBER 2022 crops. Fishing constitutes an important activity as Thailand is a major exporter of farmed shrimp. However, agriculture’s contri- bution to the GDP is declining, while the exports of goods and services have increased. Over half of Thailand’s agricultural land was under rice cultiva- tion, followed by field crops such as maize, cassava and sugar- cane; rubber; long-term permanent crops and forest, such as oil palm; pastureland and vegetable and flower production. Agriculture has historically been the backbone of the Thai economy, employing the majority of the national working-age population. While the sector has seen a decline in the number of workers in recent years, some 12.7 million workers, approxi- mately 30 percent of Thailand’s total labour force, work in agri- culture today. Increasingly, the sector is depending on migrant workers from Cambodia, the Lao People’s Democratic Republic, and Myanmar to fill the growing labour shortages in the sector. Over the past few decades, Thailand’s exports have been shifting away from agricultural to manufacturing products. How- ever, agricultural and food product exports remain vital to Thai- land’s economy, and Thailand continues to be a net exporter of agri-food products. Approximately 40 percent of Thailand’s agri- food products were exported to the country’s major trading part- ners including China, Japan, and the United States of America. Agri-food exports to intra-Association of Southeast Asian Nation (ASEAN) countries’ have also grown rapidly, while agricultural ex- ports to other developed countries have been relatively stagnant in recent years. RICE PRODUCTION While Thailand increasingly exports many high-value pro- cessed agri-food products, natural rubber and rice continue to play a dominant role and account for one-third of total agri-food exports in value. Thailand is the 13th largest food exporter in the world, with over 10,000 food and beverage processing fac- tories. The Ministry of Industry reported that the food industry performed impressively in 2021, both in food exports and food manufacturing. The food manufacturing industry achieved an overall growth of 4.5 percent. In its latest report released on 31st August, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) post in Bangkok forecasts Thailand’s 2022/2023 season rice produc- tion at 20 million tons. Abundant water supplies and favorable weather conditions will push rice production slightly higher than precious season. As of August 10, 2022, the planting acreage to- taled 12.3 million hectares, covering areas of the northern region and the central plains, which accounts for roughly 57 percent of total rice acreage in irrigated areas. USDA revised down Thai rice exports to 7.5 million tons in 2022. Larger exportable supplies and a recovering global econ- omy helped Thai exports recover from 2020 and 2021, increas- ing by 21 percent from 2021. The depreciation of the Thai baht against the U.S. dollar made Thai rice export prices more com- petitive. In July 2022, the Thai baht hit a 16-year low against the U.S. dollar at 36.17 baht/$1.00. In addition, many countries began to secure staple foods and supplies since Russia’s invasion of Ukraine, which boosted global demands for rice. However, the container shortage and high fuel prices will likely leave freight costs high throughout 2022. The Thai Customs Department reported that rice exports to- taled 3.5 million tons in the first half of 2022, up 57 percent from the same period last year. Iraq became the primary market for Thai rice exports, totaling 660 thousand metric tons, followed by the United States and South Africa. Exports of white rice rose the most to 1.6 million tons, up significantly from the same period last year. Demand for Thai white rice grew the most in the Middle East, mainly Iraq and United Arab Emirates. Fragrant rice exports increased to 1.1 million tons, up 41 percent from the same period last year due to strong demand from the United States, Canada, and the EU countries. In June 2022, Thai rice exports totaled 760 thousand metric tons, valued at $377 million. The volume and value of rice exports in June 2022 were 69 and 57 percent high- er, respectively than June 2021. The president of the Thai Rice Export Association expects that Thai rice exports will average 600-700 thousand metric tons per month for the rest of 2022. USDA revised rice consumption in the 2022/23 season up to 13.5 million tons. Increased economic activities from a growing Rice Production, Consumption and Exports in Thailand (1000 Tons) 2020/2021 2021/2022 2022/2023 Production 18863 19650 20100 Consumption 12700 13000 13500 Export 6062 7200 8000 Source: USDA Wheat Production, Consumption and Imports in Thailand (1000 Tons) 2020/2021 2021/2022 2022/2023 Production 0 0 0 Consumption 2960 2450 2600 Import 3306 2351 2900 Source: USDA Corn Production, Consumption and Import in Thailand (1000 Tons) 2020/2021 2021/2022 2022/2023 Production 5600 5300 5200 Consumption 7300 7100 6700 Import 1921 1519 1600 Source: USDA