Food exports in 2010 are projected at 750 billion baht, a substantial increase of 28 billion baht on this year's estimate, director of the Food Institute, Yutthasak Supphasorn, said on Tuesday.

"Food exports for 2009 are projected at 722 billion baht, a 8.4 per cent decline from a year earlier. But the figure was better than the previous forecast of a 15-20 per cent contraction due to the return of overseas orders," Mr Yutthasak said.

He attributed the improvement to the recovery of world's economy that helped boost demand for food and higher export values of agricultural products, processed food, refined sugar and animal feed.

According to the director, the increasing demand for food during Christmas and New Year festive seasons has prompted manufacturers to increase production capacity to 51-52 per cent of their total capacities. The utilisation of production capacity of manufacturers is expected to return to normal level next year.

He admitted that the private sector was concerned about the appreciation of the baht value which had affected the food exports. He called on the government to stabilize and weaken the Thai currency. Manufacturers want the baht value to stay at 36-37 baht to US dollar to strengthen competitiveness of the food industry.