BANGKOK, Thailand – Thailand’s food exports are expected to drop 7.3% to 1.4 trillion baht ($42 billion) this year as soaring energy costs and geopolitical tensions squeeze margins, leading industry bodies said on Tuesday.
The Federation of Thai Industries, the Thai Board of Trade, and the National Food Institute (NFI) issued the forecast after exports in the first two months of 2026 slumped 10.5% to 202.1 billion baht. Spiking energy prices from Middle East conflicts have driven up freight rates and insurance premiums.
Rising energy and logistics costs will be the primary factors weighing on Thai food exports this year, particularly in the first half when volatility remains high,” said Thongdee Pala, FTI food group chairman.
A stronger baht and weak global demand have further pressured the sector, with exports to the Middle East, U.S., and Southeast Asia seeing double-digit declines. Border tensions with Cambodia alone are estimated to cost 5 billion baht in monthly export value, the NFI added.
Industry leaders urged the government to stabilize fuel prices through tax cuts and the state oil fund. Despite the downturn, the NFI expects a gradual recovery in the second half of the year, bolstered by ‘future food’ growth, provided the situation does not escalate. (TNA)
