NFI executive director Yutthasak Supasorn said food exports last year had risen 9.9 per cent to Bt620 billion, due to stellar performances for rice, tapioca, and animal feed.

However, fishery, vegetable and fruit exports declined because of raw-material shortages.

Food exports to the main overseas markets of Asean and Europe were up by 29 per cent and 18 per cent, respectively.

Sales of processed chicken to Japan declined because of bigger supplies in that country, while sales of shrimp to the United States shrank because of the weak dollar and the economic slowdown there, he added.

Pornsilp Patcharintanakul, chairman of the Thai Chamber of Commerce's agriculture and food industry committee, noted that last year's 7.2-per-cent growth rate was lower than the growth of 8-9 per cent that exports enjoyed in past years.

He attributed the slowdown to the strong baht and tight supply of agricultural products, which have been partly diverted to the production of alternative energy for the domestic market.

For instance, palm growers prefer selling their nuts to local biodiesel plants rather than traders because of equivalent or better prices, he said.

Food exporters have had to quote higher prices not only because of baht appreciation, but also the increasing cost of overcoming non-tariff barriers in European countries, which require green products and environmentally friendly manufacturing processes.

Vilai Kiatsrichart, honorary president of the Thai Food Processors' Association, said higher costs had made local operators lose their competitiveness and their share of the global market.

Wiwan Boonyaprateeprat, secretary-general of the Thai Oil Palm and Palm Oil Association, said palm exports would probably be less than last year because the global price is lower than the local price.

She said that if the government and public agencies do not have a plan to manage and balance the supply of farm commodities to food and alternative-energy industries, all stakeholders from farmers and manufactures to end consumers would suffer in the long run.

Besides, the Energy Ministry should limit the number of licensed biodiesel plants because of over-demand in the market. Biodiesel plants will find themselves relying on imported feedstock, which will be priced higher than plain diesel, she added.