August 27, 2008

Thailand's corn production in 2008-09 is likely to climb 4 percent on-year to 4 million tonnes due to acreage expansion and yield increases, according to the USDA's Foreign Agricultural Service.

Average yield is expected to increase slightly to 3.92 tonnes per hectare as yield improvements in the central area are offset by below-average yields in the north, especially in the mountainous areas.

Thailand is expected to export 700,000-800,000 tonnes of corn due to strong demand from Asian countries, particularly Malaysia and Indonesia.

Due to strong demand for animal feed, corn imports are projected to keep increasing to 500,000 tonnes, especially from Laos and Cambodia under the Joint Economic Cooperation Strategy Programme. The programme is an economic cooperation agreement between Thailand, Vietnam, Laos, Cambodia and Myanmar. Imports of corn from these countries to Thailand are duty-free.