September 10, 2014
Thailand sees higher chicken exports in the face of expired Chinese meat scandal (week ended Sep 5, 2014)
An eFeedLink Exclusive
Price summary
There has been an up-tick in the farm-gate price of live chicken in Southern Thailand, where it has risen to between THB47/kg (US$1.47/kg) and THB49/kg (US$1.53/kg), although the national average remains unchanged at THB48/kg (US$1.50/kg).
The strong price has been holding on for the last two weeks amid brightening export prospects, especially from Japan and Russia, which had signified intention to buy more from Thailand.
In Bangkok and other parts of Central Thailand, this week's ex-farm price for live poultry stays at THB48/kg (US$1.50/kg).
The price in the northern region is somewhat low, ranging from THB45/kg (US$1.41kg) to THB46/kg (US$1.44/kg), about THB2 to THB3 a kilogramme shy of the national average, but nothing should be read into it.
Northeastern and Northern Thailand are the most depressed parts of the country. As they don't have much purchasing power, prices of agricultural produce there are normally lower than those in the capital Bangkok.
In the eastern and western regions, the price ranges from THB45/kg to THB48/kg (US$1.41/kg to US$1.50/kg).
Market analysis
Thailand's Department of International Trade expects the country's chicken (raw and cooked) exports to climb to about 570,000 tonnes this year - from only 530,000 tonnes last year -- following Russia's recent decision to boycott US poultry products and the expired Chinese meat scandal in Japan.
Russia has stopped importing food products from the US and its European allies, including Australia, in retaliation for the economic sanctions Western countries had imposed on Moscow over its involvement in the Ukraine conflict.
Until the embargo, Russia got much of its chicken imports from the US. Russian importers have since trained their eyes on Thailand for their chicken orders.
In Japan, fast food and convenient store chains like MacDonald's, KFC, Burger King and Family Mart, have begun shifting their orders to Thailand after a Chinese TV station had reported that a Shanghai-based supplier repackaged and sold meat past its use-by date to its Japanese customers.
McDonald's Japan, which has about 3,000 stores nationwide, has stopped buying chicken from China and shifted its orders to Thailand instead. Other fast food chains have followed suit, according to the department.
With these developments, Thailand's leading meat exporter Charoen Pokphand Foods (CPF) anticipates its 2014 sales to reach THB400 billion or US$ 12.5 billion.
The international trade department expects fresh and cooked chicken exports to Japan to reach 260,000 tonnes this year.
|
Markets |
Pricesfor whole dressed |
Prices for whole dressed |
Changes |
|
Supermarkets (Bangkok) |
150-160 |
150-160 |
--- |
|
Public markets (Bangkok) |
85-95 |
85-95 |
--- |
|
Public markets (Suburbs) |
85-95 |
85-95 |
--- |
|
Farm gate |
48 |
48 |
--- |
|
US$1=THB 32.00 (Sep 10, 2014) | |||
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