Thailand's fruit exports to slow down in H2, with China as growth point

BANGKOK, Aug. 1 (Xinhua) -- Thailand's fruit exports are expected to experience a slowdown in the second half of 2023, with China identified as the primary source of growth, according to the latest report by the Bangkok-based Kasikorn Research Center.

The report highlighted challenges in the latter part of the year, including the passing of the peak season, potential economic slowdown in major export markets, and climate change impacts affecting fruit quality and yield, which could lead to a decline in the total value of Thailand's fruit exports in the rest of the year.

Driven by the recovery of trade with China, fresh and refrigerated fruits are expected to see growth in exports, while canned and processed fruits may encounter declining exports due to reduced orders from markets like the United States and the European Union, it said.

In the first half of 2023, Thailand's fresh, refrigerated, and processed fruit exports achieved a total value of 5.5 billion U.S. dollars, showing a year-on-year growth of 10.3 percent, primarily attributed to the recovery from a low base in 2022 and the robust growth in orders from China, one of its major markets.

With the challenges potentially lowering the value of Thailand's fruit exports in the second half, the report projected an estimated overall growth of approximately 2.3 percent, leading to a total export value of 7.8 billion U.S. dollars for the entire year.

The think tank also warned about the potential persistence of the El Niño phenomenon from the rest of 2023 to 2024, posing risks to fruit cultivation as seawater intrusion in fruit-growing areas may lead to higher soil salinity, potentially causing variations in raw material quality, supply shortages, and price increases.