Offering security in fraught times

The Bangkok Post Business reports that global uncertainties, including geopolitical tensions, rising energy costs, and potential disruptions to critical infrastructure, may create opportunities for Thailand's agriculture and food industries as countries seek to strengthen food security and build up emergency reserves. However, industry leaders warn that higher demand may not translate into immediate gains due to rising production and logistics costs, tight liquidity, and existing inventories.

Thailand's reputation as the "Kitchen of the World" is based on around 70% of its agriculture and food production being consumed domestically, with 30% exported. As more countries seek to stockpile food, especially those lacking domestic production and reliant on imports, this trend could benefit Thailand's agriculture and food sectors.

However, producers remain hesitant to ramp up production due to cost pressures and liquidity constraints, especially among small and medium-sized enterprises.

Brief written by urgent.news from Bangkok Post Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.