China is increasingly becoming a major importer of Thai palm oil for its food industry, which will help reduce Thailand’s dependence on India as its only major market to date, according to Nantapong Jiralertphong, director of the Office of Trade Policy and Strategy at the Ministry of Commerce.
India currently accounts for 77% of all Thai palm oil exports, he said, adding that increasing demand from China will provide Thailand with an opportunity to reducing its dependence on a single major importer.
He said that Thailand should, however, explore the opportunity to increase the value of Thai palm oil by producing upgraded products, such as pure palm oil, organic palm oil for the baking and non-dairy creamer industries and trans-fat-free palm oil, which would meet the demand from health-conscious consumers in China.
He suggested that Thai exporters explore digital platforms, such as Alibaba or WeChat, to expand consumer bases among the B2B groups, as well as existing trade agreements, such as RCEP and ACFTA, to increase their price competitiveness and market access.
According to the American Oil Chemists’ Society, China is the world’s third largest consumer of palm oil, after Indonesia and India.
Meanwhile, Kuntida Bundhuratana, director of the Office of Foreign Trade Promotion in Chengdu in China, said that China is increasingly importing higher-quality goods, adding that this trend presents an opportunity for Thailand to upgrade its palm oil products to meet the demands of Chinese consumers.
Asanee Mallamphut, president of the Palm Oil Refinery Association, said that Thailand should try to rebrand Thai palm oil as a quality and reliable product, which gives importance to environmental protection and sustainability.
