Food to drive exports

       Food products will be a key driver of Thailand's export growth next year, experts say.
       The sector's shipments are predicted to grow by 4.57% to top 755 billion baht in 2010 compared with an 8% contraction this year, said Yuthasak Supasorn,director of the National Food Institute.
       Signs of global recovery have prompted the institute to increase its export forecast for the year to a contraction of 8% to 722 billion baht, up from a slide of 15-20%.
       "The improving target is due to the improving global economy while stimulus packages from various government have also boosted food demand," he said.
       Thailand's shipments to the EU are expected to climb by about 10% next year driven by a regional recovery, said Banjongjit Angsusingh, executive director of the Thai Trade Centre in London.
       This year's shipments are expected to fall by 10-15% to $21.26 billion.
       The trade centre suggested the government next year map out stimulus measures to attract European entrepreneurs, particularly those who want to use Thailand as a production base,especially for animation and printing.
       As the UK will host the 2012 Olympic Games, Thai manufacturers and exporters are recommended to expand product lines to capitalise on the event.
       Exporters, meanwhile, are being urged to tap the elderly and health food markets.
       Food, textiles and electronics products can expect to see strong growth for the rest of the year, said Chantira Jimreivat Vivatrat, executive director of Thai Trade Center in Los Angeles.
       But exports to the US this year are set to shrink by about 5% to $19.56 billion, she said.
       Mrs Chantira said she could not provide a forecast for next year without input from the private sector. But exports will focus more on niche markets through institutions and organisations,such as the US army, hotels, hospitals,cruise ships, prisons, sports stadiums and concert venues, she said.
       Those niche markets are expected to increase the country's export income by not less than $100 million, she said.
       Exports to Japan are expected to edge up over next year after a 20% contraction in 2009 from $20.09 billion last year,said Amparwon Pichalai, executive director of Thai Trade Center in Tokyo.
       Consumers in Japan's fragile economy are expected to remain cautious over their spending until next year, she said.
       Commerce Minister Porntiva Nakasai recently said Thailand's export decline has bottomed out, with single-digit growth forecast for the fourth quarter,which could reduce the full-year contraction to between 10% and 13%.
       Improving global demand was expected to drive the Kingdom's export growth upwards of 10% in 2010, she said.