Disruptions to Thailand’s fresh produce trade could increase as the country’s capital Bangkok races to mitigate the effects of rising river levels.
Persistent rains since July have lead to the worst flooding in the country in 50 years, according to a report by Bloomberg.
The worst hit regions have been in the mountainous north where floodwaters have caused loss of life and inundated homes and farms.
Koerner Agro managing director Veera Likanasudh told Fruitnet.com chilli production at one of the farms it sourced produce from for export to EU markets was wiped out by the flooding. The company has two other farms certified to grow produce for EU markets from which it sources chillies, but these would not be ready for harvesting until November, meaning a significant portion of his export programme had been knocked out by the floods.
Floodwaters had since moved down the country and are now threatening Bangkok. The water is expected to peak there between 16 and 18 October, according to a report by Bloomberg, and officials in the capital are shoring up floodwalls on the Chao Phraya river while also preparing evacuation plans and medical supplies.
The flooding would damage the country’s fresh produce trade said Woradech Chaiworapoj of Thongchai Intertrading as people in affected regions reduced spending on non-essential items such as fruit.
Distribution channels for fresh produce would also be hampered by the flooding with roads either washed out or submerged.
Bank of Thailand governor Prasarn Trairatvorakul told Bloomberg the financial costs to the country’s agricultural industry could run as high as bt20bn (US$65m).
