March 26, 2007

USDA: Thailand's 2007/2008 grains output seen to increase

The grains industry in Thailand is seen to enjoy a good production in marketing year 2007/2008 as rice production is likely to increase by 18.4 million metric tonnes (MT) due to acreage expansion following its good market prices, statistics show from the Thailand Grain and Feed Annual 2007 presented by the US Department of Agriculture.

Corn production is likewise foreseen to increase as most farmers are seen to shift crop plantation from tapioca to corn. Average harvests are also expected to be higher than the previous year as farmers continue to utilise high-yielding seeds. The second crop production, accounting for 10 percent of the country's total corn throughput is expected to increase significantly due to attractive farmgate prices.

In anticipation of an economic recovery, wheat imports is seen to rebound due to the demand for Western diet as well as the increasing popularity for noodles and bakery products with the Thai consumers. The growing demand for fish feed will also clamp the need for substandard wheat.

However, the adverse effects of the prolonged dry season may limit production expansion among these commodities in the second crop cultivation as the government and other concerned authorities continue to monitor weather conditions.

For the full USDA report, please click here