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Thai Market Overview

Production

Thailand is the world's largest producer of pineapple. 1999 was the year in which there had been a significant increase in terms of both areas of planting and production yield in Thailand. The total production was right around 2.353 million tons, which is almost 32% higher than 1998's 1.787 million tons production according to the Food and Agricultural Organization of the United Nations (FAO) statistics. This could partly be as a result of the high price of pineapple during 1997 to 1998 which inspired the farmer to try to expand and optimize their growing area..

Unsurprisingly, the price has come down dramatically as a consequence. In November 1999, the price almost bottomed out to 1.28 Baht/kg, which was 19% less than its previous month and 76% less than the same period last year. Regarding the production capacity, the canned pineapple manufacturers are able to switch their production line to other kinds of fruits, so the actual production capacity in 1999 were at 70%, up from 50% in 1998 when the overall pineapple production decreased due to the El Nino phenomena.

Markets

Even though competition has risen due to Antidumping Law posted by the US government and GSP cut by EU, lower pineapple price helped Thai pineapple industry to still able to maintain its competitiveness.

During the first three quarters of 1999, Thailand had exported about 333,754 metric tons or 9,109 million Baht of canned pineapple, up from the previous year by 109% and 83% respectively. Total export volume in 1999 increased substantially from 1998 due to large supply of pineapples.

Trend

The production in 2001 is expected to decrease by 2 - 4% because the low pineapple price in 1999 to 2000 did not attract farmers to expand their growing areas. The export market will still face high competition from major Asian competitors such as Philippines and Indonesia. The estimated export volume in the year 2000 is at 440,000 metric tons, approximately 12,320 million Baht, a 7% increase from last year. In 2001, it is estimated at 453,200 metric tons, approximately 12,690 million Baht, a 3% increase.

The canned pineapple industry is still rather competitive with strong challengers from countries like Philippines and Indonesia. Total export of canned pineapple this year is estimated at around 440,000 metric tons or about 12,320 million Baht, an increase of 7% and 10% respectively. In 2001, the forecast is estimated at around 453,200 tons or 12,690 million Baht, up 3%, whereas the export price in US dollar is expected to decline by 2% in the year 2000, and stay at US$700/ton in 2001.


source: SCB research institutes

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