January 10, 2007

Thailand to cut poultry production by 5 percent in 2007

Thailand's poultry industry is expected to cut output by 5 percent to 812 million chickens in 2007, traders said.

Despite the resulting drop in poultry feed demand this year, Thailand's commercial feed consumption is estimated to rise slightly from last year due to growing demand for swine feed, traders and officials said.

Commercial feed consumption is estimated at 12.7 million tonnes this year, 4 percent up from 12.23 million tonnes last year, a Feedmill Association official said.

Thailand produces pork mainly for domestic consumption. What little exports it had were limited to Asian countries, due to foot-and-mouth disease incidences.

Thailand's poultry exports are expected to see little growth this year, mainly due to high prices of key feedstuff and a strong domestic currency, exporters said.

Thailand aims to export 287,000 tonnes of poultry products in 2007, according to the Thai Boiler Processing Exporters' Association, up marginally from 285,000 tonnes in 2006, which was 19 percent below an earlier estimate of 350,000 tonnes.

Thailand's corn prices has risen 42 percent to THB 7,500 a tonne (US$211) over the past year on limited domestic supply, steady demand from the poultry industry and more exports.