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Market Reports

August 2

Saha Farm's reduced production affects Thai poultry supply and lifts prices (week ended Jul 26, 2013)
 
An eFeedLink Exclusive        
 
 
Price summary
 
Supply has decreased in many areas in Thailand, pushing chicken farm gate price over THB 50/kg (US$1.61/kg).
 
Chicken prices maintained at THB 48/kg (US$1.55/kg) in the central and Bangkok area; THB48-51/kg (US$1.55-1.65/kg) in the Northern and North-Eastern region; while the Southern region has the highest price ranging THB52-54/kg (US$1.67-1.74/kg).
 
After Saha Farm Group reduced its production, prices in the chicken should stabilise until the end of the third quarter of this year.
  
  
Market analysis
 
Narongchai Srisantisaeng, senior vice president of Betagro Group, forecast the trend of broiler price for the third and fourth quarter of this year will be stable and uptrend due to reduced supply after the Saha Farm Group reduced its production. As the fourth quarter is a period of increased travelling and celebration of the Thai people, broiler prices are expected to be higher.
 
Narongchai said currently, the country's weekly broiler production averages 25 million birds, an increase from 19 million birds per week from the last two to three years. He expects production will be 30 million birds per week in next three to five years.
 
Krungthai Bank and major creditors have agreed to inject fresh loans to help the ailing Saha Farm Group turn the corner.
 
Krungthai Bank president Vorapak Tanyawong said a liquidity crunch and debt are critical problems for the country's leading poultry producers, but the industry remains viable, with exports picking up for frozen chicken this year.
 
Saha Farm has debts amount to about THB 5 billion (US$159.74 million), with the largest amount owed to local commercial bank such as Krungthai Bank, Thanachart Bank and the Islamic Bank of Thailand.

Saha Farm Group had to reduce production to about half its slaughtering capacity of 600,000 to 700,000 chickens a day. The group aims to return to normal business in the next two months, after securing financial support from Middle East investors, local bank such as Krungthai Bank and local major creditors.
 

Markets

Pricesfor whole dressed
chicken as of
  Jul 19
(in Thai baht/kg)

Prices for whole dressed
chicken as of
  Jul 26
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Supermarkets (Bangkok)

130-140

130-140

---

Public markets (Bangkok)

90-95

90-95

---

Public markets (Suburbs)

90-100

90-100

---

Farm gate 

48.00

48.00

---

US$1=THB 31.40 (Aug 2, 2013)

 

 


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