Thailand's Pineapple Situation: 2021 Outlook
Following a supply stumble continuously in 2019 and 2020, the situation of Pineapple crop and raw material supply in Thailand is believed to get back on its feet in 2021 despite this year's volume is still far less than its peak years back before 2018.
Pineapple has long been a regular agricultural product that supports local Thai farmers to earn for a living. Nevertheless, this economic crop itself is also a hollywood star on global stage being well known for its 'tropical-ness' through its sweet & sour juice and flesh which is being loved by people around the world. Thailand's pineapple is claimed to dominate world's pineapple supply more than 50%, export to the rest of the world approximately 2 million tonnes a year.
As the drought in 2020 hit the main agricultural area of Pineapple in Prachuap Kirikhan that occupies 50% of the country's Pineapple agricultural area, the crop area has been devastated and the output has dropped almost 20%, while making the price skyrocketed. Plus, the pandemic respectively affects another end of the supply chain which is the demand, market, and consumers, it is purely a demand-supply nightmare for Thailand's pineapple. Truly a massive halt for exporters, traders and manufacturers especially the canned processors.
However, in 2021, the situation of crop area is getting better as more farmers are expanding both in numbers and crop plantation area, thus, the output is expected to increase by 40% as compared to last year. The Office of Agricultural Economics also issues a policy to manage the Pineapple supply in 2021 via advanced contract farming to make sure farmers and processors are matched and paired, which is very crucial in solving the issues in price and quantity at the same time.
In 2021, the pineapple supply from Thailand is expected to gain much more competitiveness and will see the increase in export volume for the processed pineapple this year, at a more reasonable price. Truly deemed as a good news for both processors and buyers overseas.
Article by GCF International - A dynamic supplier of Food and Food Ingredients.
9 February 2021
Thansettakij (2020, Mar 13)
Office of Agricultural Economics (2020, Dec 29)
Remark: this article is analysed based on the information on hand and does not guarantee the real situation in case any unforeseen circumstances take place.