The association said the ongoing conflict in the Middle East is pressuring logistics, raw materials and packaging costs, reports the Bangkok Post.
The conflict has driven up energy and logistics costs, led to fertiliser shortages, weakened the baht, and increased the prices of plastic pellets and packaging materials, said Ongart Kittikhunchai, president of the association.
The group urged the government to address high energy costs, which are severely affecting the logistics sector, such as with subsidies to support businesses.
As Thailand is dependent on exports, the government should also create a more supportive environment for exporters by facilitating access to new markets and accelerating the negotiations of additional FTAs, Mr Ongart said.
The nation must leverage its strengths, maintain a firm negotiating position, and avoid accepting terms that could disadvantage Thailand, he said.
With global food security concerns rising, the association called on the government to leverage Thailand’s agricultural strengths and future food opportunities, encouraging authorities to identify and support potential private sector players.
Thai businesses are also struggling to secure packaging materials. Even if the conflict ends soon, disruptions in packaging supply chains are expected to persist for a while, noted the association.
Panusak Palawatpong, vice-president of the association and chairman of the Food Ingredients and Ready-to-Eat Processors’ Group, said small and medium-sized enterprises are grappling with rising energy costs and could become more vulnerable if labour costs increase.
He said that as Thai banks reported strong profits last year, the government should address the significant gap between loan and deposit interest rates.
Regarding the shortage of plastic packaging, he said manufacturers are unlikely to reduce production lines, though they are more concerned about rising logistics costs.
Pongdanai Wangthamrongwit, vice-president of the association and chairman of the Tuna and Seafood Processors’ Group, said the canned tuna and seafood sector has been affected by higher fishing costs due to increased fuel prices. This has increased both raw material prices and transport costs to processing facilities.
Korrakod Boodarkad, vice-president of the association and chairman of the Pineapple Processors’ Group, expressed concerns about the potential impact of the super El Niño phenomenon, noting that pineapples require adequate water to maintain quality.
She said that reservoirs in Prachuap Khiri Khan, a major pineapple cultivation area, are at alarmingly low levels.
Cans account for up to 30% of total production costs for canned pineapple. Prices are likely to rise in the second and third quarters, said Ms Korrakod.