March 28, 2007

 

Thai broiler meat exports to grow 7 percent in 2007

 

 

Thai broiler meat exports in 2007 are forecast to grow by 7 percent from the 2006 level to at about 280,000 tonnes, according to a USDA report released March 13.

 

Japan should continue to import more cooked chicken meat from Thailand in 2007 while the EU market will also rise further after it implemented a clear-cut adoption of its new tariff rate-quota, the USDA report said.

 

Trade sources in the Thai Broiler Processing Exporters Association strongly believe that Thai exports of cooked chicken meat to the EU should continue to grow in the next few years, regardless of the current EU import regime, the USDA reported. Thai exporters also expect lower import duties from the importers.

 

Thailand has made an effort to convince major importing countries, i.e., Japan and the EU, to accept the compartmentalization practice to let Thailand be able to export raw/uncooked chicken, regardless the bird flu status of the country, the USDA noted.

 

The concept from the World Animal Health Organization, was developed to facilitate safe and fair international trade. However, Thailand has been unsuccessful so far in convincing its trade partners, the USDA report said.

 

Thailand confirmed the re-appearance of bird flu in mid-January this year with the first outbreak in ducks from a freerange farm in Phitsanulok Province.

 

As of March 3, 2007, there have been outbreaks in Nong Khai and Ang Thong Provinces. None of the outbreaks reportedly affected commercial broiler farms, the USDA report noted.

 

Meanwhile, Thai broiler production should be relatively flat in 2007,

 

The Thai broiler industry is currently struggling with business losses in 2006 and unfavorable market conditions in early 2007, the report said.

 

High corn costs which have increased feed costs by 10 percent, is taking its toll on production.

 

Nearly all integrated broiler processors are now reducing their chick production, from 18-19 million birds per week in late 2006 to 16-17 million birds per week. However, the report said there would be a possible bounce-back to 18-20 million birds in the second half of 2007.

 

The USDA expects both consumption and export to continue to grow, but at a slower pace than the past. Consumption should grow due to increasing consumer confidence in the safety of cooked chicken meat and relatively competitive prices of chicken meat against other meats. Exports should continue to grow to both Japan and the EU, the report said.