January 18, 2011

Thailand's rising livestock sector to boost farm equipment sales

Thailand's growing livestock industry is seen to drive the sales of farm equipment to THB4 billion (US$130.80 million) for 2011, local news reports.

The industry was worth about THB3 billion (US$98.10 million) in 2009 and the continuous growth has encouraged traders to establish the Thai Livestock Equipment Association to help improve not only sales but farming standards.

Cherdchai Sinsarng, the group's first president, said Thailand's livestock industry had made significant developments over the past four decades and generated strong export income, especially from chicken.

Earnings from chicken exports last year were estimated at THB55 billion (US$1.8 billion) from shipments of 415,000 tonnes, making Thailand one of the world's largest chicken exporters.

He said the association grouped 33 companies that manufacture and distribute equipment used in livestock farms, including temperature controllers to promote animal growth such as evaporative cooling pads and heaters, in addition to egg-grading machines.

The Agriculture Ministry has estimated that the livestock sector this year would expand by 0.8% to 1.8% thanks to high meat prices, driving big and medium-sized manufacturers to expand production.

Last year, Thailand raised 946 million broilers for domestic and export markets, 12.12 million pigs, 1.16 million buffaloes, 301,221 dairy cattle, and produced 9.76 billion eggs.

According to the association, advanced farming has helped Thailand overcome previous difficulties including the bird-flu outbreaks that seriously damaged the poultry industry in 2004.

The avian flu, which caused more than 60 million chicks be culled, also forced substantial changes.

The association said many poultry companies have received a total THB25 billion (US$817.53 million) in low-interest loans from state banks to adopt compartment-type farming, in which disease can be contained more efficiently.