September 7, 2007

 

Thailand's corn imports to rise on reduced planting area

 

 

Thailand's corn imports would go up as poultry demand recovers at a time when farmers are reducing corn planting, according to the US Foreign Agricultural Service (FAS).

 

Lower corn planting and higher poultry feed demand would also lower Thailand's corn exports. Poultry production, representing around half of total feed corn consumption, is expected to grow strongly due to higher export demand for cooked chicken meat.

 

In addition, corn export prices are expected to be less attractive than domestic ones. Export prices are expected to remain flat as world exportable supplies remain at the previous year's level.

 

Conversely, corn imports should increase slightly as the domestic poultry sector recovers.

 

Corn production in Thailand is expected to increase slightly to 3.85 million tonnes, down one percent from the previous forecast, due to a reduction in planted areas.

 

The area expansion in the north was offset by a continued contraction of planted areas in the northeast and central, which accounts for around 40 percent of total planted areas, the report said.

 

Despite corn reaching record farmgate prices, cultivated areas fell as farmers found returns from alternative crops such as cassava, were more profitable.

 

However, average yields would likely be higher than the previous year due to favourable rainfall.

 

Thai corn imports would continue to increase significantly, particularly from Laos.

 

Corn imports would be boosted by a new agreement under the Joint Economic Cooperation Strategy Programme, an economic cooperation agreement between Thailand and surrounding countries, in which corn would be imported duty-free.

 

A substantial part of imported corn would come from the 48,000 hectares in which Thai corn traders had contracted farming to Laos. This area is expected to increase significantly in MY 2007/08

 

Laos supplied 350,000 to 400,000 tonnes of corn to Thailand in MY 2006/07

 

More than half of the imported corn from Laos is distributed locally to domestic medium and small-scale feed mills. The rest would be re-exported to countries like Vietnam and Indonesia.