Table 23.2.
Implications of COVID-19 for stakeholders along the food supply chain in Thailand.
Food chain | Organizations | Positive impact | Negative impacts | Remedial measures taken | Challenges/comments |
---|---|---|---|---|---|
Food producer and exporter |
Oishi Group Public Company Limited The company has two segments, food and beverage business that focus on three areas:
|
Profit declined 40.8% in Q3/2019–2020. Consumption declined by 70%, with limited online delivery. |
Developed a contactless food ordering system (QR order) introduced at Oishi Grand, Oishi Buffet, Oishi Eaterium, Shabushi and is intended to expand to all 269 branches. Started online booking through app to avoid interaction/contact during visit. Launched two new apps, O-Navi (search restaurants in Oi group) to provide convenience and ShabushiHotto game, to redeem awards or receive discounts during dining. |
||
Food producer |
Kaset Thai International Sugar Corporation Public Company Limited (KTIS) Produces sugar as a major product along with bioproducts, which are used by-products from sugar production as raw materials, such as paper pulp from bagasse, ethanol from molasses, and electrical energy from biomass. |
The operating cost of the company decreased by 29.7% as the net profit decreased 32.4%. Various business lines were affected by the pandemic (Matichon, 2020). | In order to fight the COVID-19, KTIS decided to produce alcohol/sanitizers to be distributed by 7-Eleven in Thailand. | Certain projects within the organization were delayed due to lockdown impacting the delivery of machinery from Europe and other countries in Asia. Apart from COVID, the early drought in 2020 impacted the sugarcane production in the country. |
|
Food producer and supplier | Minor Food, The Operator of Pizza, Sizzlers, and Bonchon in Thailand. | Reported growth in their food delivery sales proportion of total business from 15% in the first quarter of 2019 to 30% for the same period in 2020. | Many restaurants shifted their focus to delivery and takeaway, which have become the key sales drivers. It is estimated that the food delivery business in Thailand could grow by 31% with a total value of more than US $60 million during the partial lockdown. (USDA, 2020) |
||
Retailers | Central Food Retail (Tops Supermarket, Central Food Hall, Tops Daily, and Family Mart). | Generated 4% increase in sales revenue of about US $710 million. Makro, a cash and carry retailer, also reported a 9% growth rate for its first quarter from consumers stockpiling essential food items. |
7-Eleven reported a drop in their average sales by 4% for the first quarter of 2020 | Some retailers are offering chat-and-shop services (placing orders by calling)
|
Declining international tourists have severely impacted the retail and food service markets with limited growth. |
Compilation by authors Matichon. (2020). KTIS, p. 15608. Retrieved from https://sitwebsites.blob.core.windows.net/ktissugar-news/20201204-ktis-matiachon-midday01.pdf; USDA. (2020). The impact of the COVID-19 outbreak on the Thai food retail and food service sector.