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October 31, 2011

Thai Broiler Weekly: Flooding triggers drop in chicken production (week ended Oct 20)

An eFeedLink Exclusive
 

Price summary
 
Domestic chicken meat prices remain stable despite panic food buying in Bangkok as residents brace for wider flooding, and a 10-20% drop in broiler production.
 
At Bangkok supermarkets, chicken prices are unchanged at THB 75-85/kg. And while other products like canned fish, noodles, bottled water, and eggs have disappeared from store shelves, chicken supply remains ample.
 
While nearby provinces have gone underwater, the farm price of live birds has been holding firm at THB44/kg in Bangkok. It has softened in the North and Northeast at THB35-38/kg, but remained unchanged in the East, West and South.
 
 
Market analysis

The manager of the Thai Broiler Processing Exporters Association, Kukrit Areepakorn, says that broiler production has dropped by 10-20% from its normal weekly level of 23 million birds as a result of the flooding.
 
He says a number of poultry farms in the flood-hit provinces of Ayutthaya, Pathum Thani, Nakhon Pathom, Chachengsao, Nonthaburi, Phitsanulok , Nakornsawan, Lopburi, Chinat, Singburi, Angthong, etc. have either shut down or scaled back operations.
 
The widespread flooding, he adds, has also resulted in logistics problems.  Even farms which remain dry have been adversely affected by the inundation. Some of them, he says, cannot transport their chicken to the market because of flooded roads.

Kukrit says that if the flooding continued and more areas came under water, broiler production could drop by as much as 30%. Poultry farmers were also worried that damage to crops, such as corn, rice and cassava, could be extensive enough to affect feed ingredient supply and prices in the next few months.

Chaveevan Kumpa, owner of the Chaveevan poultry group and president of the Poultry Association of Thailand, says that on top of the flooding problem, chicken exporters have to cope with declining prices overseas.

She says that in Europe, which is reeling under a serious debt crisis, the import price of chicken has gone down from US$5,200/tonne to US$5,000/tonne.
 
This price fall, Chaveevan says, could cut deeply into the profit margins of farmers at a time when feed ingredients would cost more due to tight supplies brought about by the current flooding.
 

Markets

Prices for whole dressed chicken
as of  October 13(in Thai baht/kg)

Prices for whole dressed chicken
as of  October 20(in Thai baht/kg)

Changes
(in Thai baht/kg)

Supermarkets (Bangkok)

135-145

135-145

--

Public markets (Bangkok)

75-85

75-85

--

Public markets (Suburbs)

70-80

70-80

--

Farm gate 

44(Liveweight)

44

--

US$1=THB 30.49 (October 31, 2011)


 
 
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