December 13, 2005

Thai poultry farmers invest in secure farms after bird flu

Thailand poultry producers are investing billions of baht in enclosed chicken farms after the bird flu outbreak, according to the country's Board of Investment (BOI).

Farmers now shy away from traditional open-air poultry farms as poultry from enclosed farms fetch higher export prices, said BOI assistant secretary-general Vibulphan Juntarashotem, adding that the enclosed farming system enables strict hygiene standards at every step of production and conforms with import requirements of major markets.

The BOI is promoting the enclosed farming system by extending privileges such as import duties exemption on machinery and the waiving of corporate tax for eight years. 

The BOI had received applications from 33 enclosed farm projects involving a total investment of THB3.1 billion, revealed Vibulphan. Applications for another 20 projects worth THB1 billion are also likely to be lodged next year.

Applicants are typically individual poultry farmers and corporations who have contract farming deals with conglomerates, with applicants investing THB30-60 million in these ventures.

Meanwhile, Charoen Pokphand Foods has estimated that Thailand should be able to export 400,000 tonnes of cooked chicken meat worth THB50 billion next year, which is nearly a 40-percent increase from this year's 280,000 tonnes.