1. AEC 2015 Impact to
Thai Food Industry
by
National Food Institute, Thailand

2. Outline
1. Overview of Thai Food Sector
2. Importance ASEAN to Thai Food Sector
3. Potential of Thai Food Sector
4. ASEAN Economic Community (AEC)
5. Market Opportunity & Challenge
6. Conclusion

3. 1. Overview of Thai Food Industry
Food Factory & Employment Top 10: Food Sector Value Added***
1. Fish & other seafoods, prev.
No. Food No. Persons
Factory* Engaged** 2. Rice milling
(2010) (2007) 3. Sugar
Total 9,130 870,000
4. Slaughtering
- Small 91% 37% 5. Dairy products
- Medium 6% 12% 6. Fruit & vegetables, prev.
- Large 3% 51% 7. Coffee and tea
8. Preserving of meat
Source: * Department of Industrial Works (DIW) 9. Animal feed
** National Statistical Office (NSO)
*** Office of the National Economic & 10. Bakery products
Social Development Board (NESDB)

4. 1. Overview of Thai Food Industry
GDP Composition by Industry Sector, 2009
Food &
15.3%
Beverages GDP Food Industry, 1993-2009
Office,
Accounting & 12.8% Billion Baht percent
Computing
300 30
Motor Vehicles 9.6%
250 25
Radio,
Television & 8.6%
Communication 200 20
Funiture;
6.8% 150 15
Manufacturing
Refined
100 10
Petroleum 5.9%
Products
50 5
Machinery &
5.8%
Equipment
0 0
Chemicals &
93
94
95
96
97
98
99
00
01
02
03
04
05
07
06
08
09
5.0%
Products
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
Wearing
4.5% % to Total Industry Value Added (RHS)
Apparel
Value added of Food & Beverage (LHS)*
Textiles 4.3%
Source: NESDB Note: * Constant 1998 price

5. 1. Overview of Thai Food Industry
Per Capita Consumption of Food & Beverage, 1994-2009
45 Precent Baht/Month 3,000
40
2,500
35
30 2,000
25
20 1,500
15
1,000
10
5
500
0
-5 0
94
95
96
97
98
99
00
01
02
03
05
06
04
07
08
09
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
Per Capital Food & Beverage Consumption (RHS)*
% Per Income (LHS)
% Real Growth (LHS)
% Per Expenditure (LHS)
Source: Calculated from NESDB & IMF Data Note: * Current price

6. 2. Important ASEAN to Thai Food Sector
Thailand’s Food Trade with ASEAN, 2000-2010
7,000
Import
6,000 Export 1,395
5,000 1,278
Million US$
1,135
4,000 984
3,000 786
689 752 5,126
2,000 494 4,334
348 427 3,455 3,670
1,000 1,492 1,563 1,865 2,094 2,115 2,308
0
04
05
09
10
01
02
03
06
07
08
20
20
20
20
20
20
20
20
20
20
Source: Global Trade Atlas

7. 2. Important ASEAN to Thai Food Sector
Thailand’s Food Export Thailand’s Food Export Share,
by Destination, 2005-2010 2010
Million US$ South
7,000 Asia Others
ASEAN Middle 25%
East 3%
6,000
US
4%
5,000 Japan
China ASEAN
4,000 EU-27
7% 20%
3,000 China
Middle East
2,000 EU-27
South Asia 12%
1,000
Others Japan US
0 14% 15%
2005 2006 2007 2008 2009 2010
Source: Global Trade Atlas

8. 2. Important ASEAN to Thai Food Sector
Thailand’s Food Export to ASEAN Country, 2000-2010
100%
Brunei
80% Laos
Singapore
60% Myanmar
Cambodia
40% Vietnam
Malaysia
20% Philippines
Indonesia
0%
01
00
02
03
04
05
06
07
08
09
10
20
20
20
20
20
20
20
20
20
20
20
Source: Global Trade Atlas

9. 2. Important ASEAN to Thai Food Sector
Top 10 Thailand’s Food Export to ASEAN
by Product Group, 2010
Sugars 26.3%
Cereals 16.4%
Thailand’s Food Export to ASEAN, 2000-2010
Miscellaneous Food* 11.1% 100%
Beverages 9.6%
80%
Baking Related 7.0%
60%
Milling; Malt; Starch 5.6%
Food Waste 4.7% 40%
Fats & Oils 4.0% 20%
Fish & Seafood, fresh 2.8%
0%
Dairy, Eggs, Honey 2.7%
00
01
02
03
04
05
06
07
08
09
10
20
20
20
20
20
20
20
20
20
20
20
Others 9.7%
Source: Global Trade Atlas Processed Food* Fresh & Commodity Food**
Note: * Miscellaneous Food including Sauce & Source: Global Trade Atlas
Condiment, Soup, Extracts Of Coffee, Note: * including HS 04, 16, 18, 19, 20, 21, 22
Tea or Mate & Other food preparation ** including HS 02, 03, 07, 08, 09, 10, 11, 12, 15, 17, 23

10. 3. Potential of Thai Food Sector
Thailand Food Forward
Kitchen of the World
Value Creation
01 Variety of
Raw Material
Potential of
02 Quality & Thailand 04 Government
Food Safety Priority
Food Sector
03 Taste
Delicious
Global
Standards

11. 01 Variety of Raw Material

12. 02 Quality & Food Safety

13. 03 Taste Delicious
ASEAN Food the Most Delicious Food 2011
1
Delicious
Country
Food name Rank
Massaman curry 1 Thailand
Penang assam laksa 7 Malaysia
8
Tom yum goong 8 Thailand
Rendang 11 Indonesia
Nam tok moo 19 Thailand
Pho 28 Vietnam 19
Goi cuon (summer roll) 30 Vietnam
Chili crab 35 Singapore
Stinky tofu 41 Southeast Asia 46
Chicken rice 45 Singapore
Som tam 46 Thailand
Source: CNNGO, July 2011

14. 04 Government Priority
Consumer, Safety & Trust
4 Sustainable & Environment
3 Value Creation
2 Cluster Development
1 Quality & Safety

15. 4. ASEAN Economic Community (AEC) Blueprint
AEC 2015
A Single Market A Highly A Region of A Region Fully
& Production Competitive Equitable Integrated into
Base Economic Economic the Global
Region Development Economy
- Free flow of - Competition - SMEs - Coherent
Goods, Services, policy Development Approach
Investment, - Consumer - Initiative for towards External
Capital & Skilled Protection ASEAN Economic
Labor - Intellectual Integration (IAI) Relations
- Priority Property Rights - Enhanced
Integration - Infrastructure participation in
Sectors Development global supply
- Food, - Taxation networks
Agriculture & - e-Commerce
Forestry

16. 5. Market Opportunity & Challenge
AEC Blueprint Opportunity Challenge
• Food demand of 600 • We are well know
• 10 Country, million consumers, enough, Our target
Single market Economies of scale consumers
• Zero tariffs & • Trade expansion • Elimination of NTBs
removal of NTBs • Law, regulation &
standard of difference
• Free flow of • Relocation, regional country is challenge to
investment cluster Harmonize
• Specialization & the • To improve the
Division of Labor transportation and
• Production base
logistic capacity to
efficiently link
• Trade Facilitation • Reduce transaction • Ability to integrating
cost & time, customs customs procedures
clearance

17. 5. Opportunity & Challenge…Free flow of Goods (Export)
Market BN KH ID LA MY MM PH SG VN
Product
Condiment
01
Export to ASEAN Crispbread
>1,000 Mn.฿
Beer
Coffee
02
Export to ASEAN Soy milk
Between 500- Petfood
1,000 Mn.฿
Instant noodle
Sweet corn
Fish sauce
03
Export to ASEAN Biscuit
Between 100- Oyster sauce Source:
500 Mn.฿ National Food
Yam
Institute,
Yogurt Thailand
04 Bakery flour
Note:
Export to ASEAN
Pasta BN = Brunei
Between 50- KH = Cambodia
100 Mn.฿ Salt leaf mustard ID = Indonesia
LA = Lao, PDR
Rice bran oil MY = Malaysia
05 Potato crisp M = Myanmar
Export to ASEAN PH = Philippines
<50 Mn.฿ Maize flour SG = Singapore
VN = Vietnam
Mineral water

18. 5. Opportunity & Challenge…Free flow of investment
Average ranking on the ease of doing business 2011 (1–183)
ASEAN Country Rank 2011 Rank 2010
USA 5 ⇔ 0/OM
JAPAN 18 ⇑ 1/OM
CHINA 79 ⇓ 1/OM
INDIA 134 ⇑ 1/UM
ASEAN COUNTRY
SINGAPORE 1 ⇔ 0/OM
THAILAND 19 ⇓ 3/OM
MALAYSIA 21 ⇑ 2/OM
VIETNAM 78 ⇑ 10/OM
BRUNEI 112 ⇑ 5/UM
INDONESIA 121 ⇓ 6/UM
CAMBODIA 147 ⇓ 2/UM
PHILIPPINES 149 ⇓ 2/UM
LAO, PDR 171 ⇓ 2/UM
Source: World Bank, 2011
Note: M=MEAN, OM=Over Mean, UM=Under Mean

19. 6. Conclusion
T M
H L Y
A M A L A Y S I A
I O N
L P M S
C A M B O D I A I
N R R R N
D U G
I N D O N E S I A
E P
V I E T N A M O
R
P H I L I P P I N E S

20. National Food Institute
Ministry of Industry, Thailand
www.nfi.or.th