Food Supply Chain Resilience Risks Highlighted
A recent industry report identifies supply chain disruptions in Vietnam and across Southeast Asia as critical concerns for global food system resilience. The analysis suggests that buyers are increasingly scrutinizing their suppliers' contingency planning, logistics redundancy, and crisis response protocols.
- India, the world's largest rice exporter, implemented export restrictions on non-basmati white rice in July 2023, causing global prices to surge. While some restrictions were adjusted in late 2024 and early 2025, the market remains sensitive to India's policies, which have significantly impacted food-insecure nations, particularly in Sub-Saharan Africa. - The Thai baht has seen fluctuations against the euro, with the European Central Bank noting an exchange rate of approximately 36.64 THB to 1 EUR as of February 2026. Against regional currencies, the baht's value has been dynamic; for example, its average exchange rate to the Indian rupee over the last six months was approximately 1 THB to 2.80 INR. - European buyers are increasingly prioritizing sustainability, with a growing demand for rice with certifications like Fairtrade, B Corp, or those compliant with the Sustainable Rice Platform (SRP). To export organic rice to the EU, producers must adhere to Regulation (EU) 2018/848, which governs organic production and labeling. - The European Union mandates strict traceability for all food imports under its General Food Law, Regulation (EC) No 178/2002. This requires operators to identify where their products came from and where they are going, a measure designed to quickly manage food safety risks. - A recent U.S.-Japan trade agreement threatens to reduce Thailand's annual tariff-free rice export quota to Japan from 300,000 tonnes to potentially less than 100,000 tonnes. In contrast, Thailand has been in negotiations with China to increase its rice import quota to 500,000 tons. - The Asia-Pacific rice market, valued at nearly USD 449 billion in 2024, is projected to grow, driven by population and urbanization. There is a rising demand for premium and specialty rice varieties in the region as disposable incomes increase. - Logistical challenges within Thailand, including high transportation costs and fragmented data systems, impact the competitiveness of its agricultural exports. A decline in road freight volume from 460.3 million tons in 2022 to 428.4 million tons in 2023 reflects a slowdown in economic activity and export demand.
