December 15, 2009

 

Thailand's meat sector to benefit from Asean FTA 

 

 

Despite an increase in animal feed prices, Thailand's meat industry will not be affected and will benefit once the Asean Free Trade Area (AFTA) comes into effect next year.

 

Meat and milk products will continue to be in demand in the world market next year, said agriculture permanent secretary Yukol Limlamthong.

 

He expects the demand from ASEAN countries for Thai meat and milk to increase after the AFTA comes into effect on January 1, 2010. Cambodia and Vietnam are big markets for Thai pork and beef.

 

Thailand has an opportunity to expand its meat market in ASEAN countries as it does not have a problem of anthrax, a cattle disease native to the region. Pork and beef supplies in neighbouring countries are also lower than demand.

 

The Agriculture Ministry plans to export Thai milk in the form of plain and sweetened condensed milk for use as tea and coffee ingredient.

 

Some ASEAN members have free trade agreements with Australia and New Zealand, exempting import tax on powdered milk, while Thailand uses a quota system with the two countries.

 

Yukol said dairy products from Australia and New Zealand could reach Thailand via the ASEAN countries that have free trade agreements with them.

 

Meanwhile, Yukol estimated that Thailand can export some 400,000 tonnes of chicken to Japan and the EU.

 

While chicken farmers in China and Brazil have a cost advantage over Thai farmers, poultry products from Thailand are of a higher quality which won the confidence of foreign markets, he said.

 

Yukol also urged the Public Health Ministry to introduce measures to establish standards and examine food imports from other countries, to ensure that only quality food will be made available to the Thai public.