April 16, 2009
Low meat output seen to sink Thailand's soy, fishmeal demand in 2009
Declining poultry, livestock and shrimp production will lower demand for soy and fishmeal in Thailand this year, according to the US Department of Agriculture.
Thailand's soy production remains flat and soy consumption is seen to drop for the first time in recent history in marketing year (MY) 2008-09 but is forecast to recover in MY 2009-10.
Soy imports are estimated to drop by 1.65 million tonnes in MY 2008-09 before recovering to 1.85 million tonnes in MY 2009-10. Cheaper supplies from South America, especially Brazil have reduced US market share of Thai soy imports in recent years. The US market share will remain low as 10 to 15 percent unless prices and quality become more competitive with Brazilian soy.
On the other hand, consumption of fishmeal this year is seen to drop following a decline in shrimp farming and livestock production. Exports of fishmeal are estimated to drop in 2009 due mainly to decreased supplies while fishmeal imports should be close to the 2008 level.
For more of the USDA report, please click here.
