October 18, 2004

 

 

Thailand At Risk Of Losing EU Chicken Export Market
 

Thailand may lose its export market for fresh poultry as the European Union (EU) starts looking to other sources following the resurgence of bird flu in Asia, according to Thailand's offices of commerce in European Union member states.

 

The government should encourage local breeders to concentrate on closed-operation farms, said Krisda Piampongsant, Thailand's representative to the EU and Minister of Commerce at its Office of Commercial Affairs in Belgium.

 

Such a policy would convince Europe of Thailand's stringent disease-control measures and dilute fears of unsafe food, he said.

 

"The government should concentrate on [protecting] chicken exports rather than fighting cocks, because a drop in exports will damage the economy."

 

The EU announced earlier that it would extend its ban on fresh poultry from the Kingdom to March 15, 2005. This represents the second extension of the export ban, which was originally scheduled to finish in December.

 

A senior EU official confirmed that the safeguard measure would be in place for at least another six months. It will also cover exports from China, which shares Thailand's special eligibility in being able to export fresh poultry to the EU.

 

The local industry is currently supported by the continued export of heat-treated poultry, which represents the major share of exported chicken meat and has not yet been interrupted.

 

"Our measure is proportionate and no more of a trade restriction than is necessary, as is recognised by the Thai government," said the source.

 

The EU's protective measure conforms to international standards recommended by the World Organisation for Animal Health, she said, adding that six months had to elapse from the final outbreak before a country could be classified as disease-free.

 

Thailand's office of commerce in Britain reported a 34-per-cent drop in exports of fresh chicken to the country. But a 16-per-cent increase in the sale of cooked products was registered in the first half of this year.

 

It added that the recognised quality of Thailand's exports should help override international concern and keep sales of processed meats up. Nonetheless, the country should upgrade the quality of inspection measures and provide better control of chemical residue to satisfy customer requirements.

 

The Thai commerce office in Germany said the new outbreak of avian influenza had forced it to revise down its initial prediction of total export volume this year from between US$80 million (Bt3.3 billion) and US$100 million to $10 million.

 

The EU also expressed concern that the deadly virus could be transmitted between humans. The Thai government needs to act quickly to demolish such fears by clarifying the situation in Thailand and ensuring that consumable food is safe.

 

The commerce office in the Netherlands suggested that more members of the EU would begin to look to new sources for their fresh poultry. As meat from no less than 10 new members can now be exported to EU countries without any surcharge, this puts them in a strong position to undercut Thai exporters.

 

The office added that export to the Netherlands had already fallen by 63 per cent, in contrast to cooked products, which surged 26 per cent during the first five months of this year.

 

It forecast a 90-per-cent on-year rise in imports of processed chicken products from Thailand to the country.

 

Brazil was quick to capitalise on the EU market's frigidity to Thai exporters by offering lower prices for both fresh and cooked products.

 

Thai officials also received the suggestion of having a regional zone drawn up to guarantee that the disease stayed within confined parameters until it was stamped out. The move could help to allay concerns of EU consumers.