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January 30, 2012

Thai Broiler Weekly: Farm price jumps amid Thai-EU talks on lifting fresh chicken ban (week ended Jan 27, 2012)

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Price summary

The farm-gate price of Thailand's live chicken rose by THB1-1.50/kg (US$0.03-0.05) this week following recent increases in gas pump prices.

Ongoing talks between Thailand and the EU on the lifting of the European ban on fresh Thai chicken exports could have also helped boost domestic broiler prices. 
 

Market analysis

During the last two weeks, the price of diesel, the fuel of choice for transport vehicles, jumped from THB29.90/litre to THB31.13/litre.

Pornsilp Patcharintanakul, chairman of the Farm and Food Business Committee of Thailand's Board of Trade, warned early this month that the skyrocketing cost of oil, now trading at over US$111/barrel globally, could spark a spike in livestock prices, among other food products.

The oil price-hike, he said, could trigger increases in transport costs not just for livestock products but also for feeds and feed ingredients.

Thailand's Deputy Prime Minister Kittirat Na-Ranong, meanwhile, has confirmed that his country had started talks with the European Commission (EC) on the possible lifting of the ban on fresh chicken at the end of June 2012.

Since the 2004 Asian bird-flu epidemic, the EU has banned the import of raw Thai chicken, leaving Thailand unable to exercise its EU quota of about 92,610 tonnes for uncooked salted chicken.

Thai chicken exports to the EU, which are governed by a quota system, are limited to cooked or processed chicken. Thailand's quota for cooked chicken, which is fully utilised, is 160,033 tonnes.

The lifting of the EU ban could sharply boost Thai chicken exports this year.

Thailand forecasts a 9% expansion in broiler meat production this year to 1.55 million tonnes from 1.38 million tonnes in 2011. This follows a strong expansion in 2011 as a result of strong demand on both domestic and international markets.

In the first half of 2011, the volume of chicken meat exports increased 10% (to 217,906 tonnes) compared to 2010, while the value of exports rose 22% (average prices rose from US$3,750/tonne to US$4,180/tonne). Cooked chicken meat accounted for 92% of these exports in the first six months of 2011.
 

Markets

Pricesfor whole dressed
chicken as of
  Jan 20
(in Thai baht/kg)

Prices for whole dressed
chicken as of
  Jan 27
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Supermarkets (Bangkok)

125.00-135.00

125.00-135.00

--

Public markets (Bangkok)

75.00-85.00

75.00-85.00

--

Public markets (Suburbs)

72.00-75.00

72.00-75.00

--

Farm gate 

37.50-39.50

39.00-41.50

+1.00-1.50

US$1=THB 31.76 (Jan 30, 2012)

 

 
 
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