May 1, 2009

H1N1 flu a boon for Thai chicken industry

 

Thailand's chicken industry may benefit from the H1N1 flu which is currently wreaking havoc worldwide, according to trade players.

Though chicken meat prices might spike due to H1N1, they will soon come back down, as there are still many choices of protein to compensate for pork, Thai industry leaders said.

Prasatna Ekboonkate, an executive of Health Foods, a subsidiary of Saha Farm, the country's second largest chicken producer said consumers won't suffer from higher chicken prices and are currently stable following balanced demand and supply in the domestic market.

Chicken price increase would not be more than 10 percent during the flu panic, he said.

Retail prices of chicken are being quoted at THB58-THB60 a kilogramme.

Prasatna also gave reassurances that higher demand for chicken would not cause a shortage.

Normally, about 15 million-17 million chickens are processed a week for domestic and export markets.

Saha Farm chairman Panya Chotitawan said demand for chicken would increase slightly as consumers shun pork. But prices are expected to settle down once the panic is over, he said.

Thailand's chicken exports were expected to increase by five percent to US$1.64 billion (THB58.3 billion) this year after 82,640 tonnes were shipped out in the first quarter.

Japan is the largest overseas customer at 49 percent, followed by the EU at 48 percent.

Saha Farm targets to sell 100,000 tonnes abroad this year, after its exports in the first quarter reached 10,000 tonnes.

Adirek Sripratak, president and CEO of Charoen Pokphand Foods, said any windfall for the chicken industry from the Mexican flu would be limited.

 
Siripol Yodmuangcharoen, permanent secretary of the Commerce Ministry believes that pork, chicken and seafood exports will have a good performance despite the flu havoc.

According to the ministry, food exports have dropped by 5.1 percent to US$2.72 billion so far this year due to the global economic downturn.

However, the ministry expects full-year growth of 8.3 per cent to US$14.58 billion.