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December 16, 2008
 
Thai Broiler Weekly: Consistent export demand keeps chicken prices stable (week ended Dec 11, 2008)
 
An eFeedLink Exclusive
 
 
Price summary

The farm price of live chicken has stabilized at THB33-34/kg despite sluggish domestic consumption as Thailand's economic crisis deepens.
 
The Department of Internal Trade said chicken meat prices at wet markets and supermarkets are stable, after falling slightly about two weeks ago. Stable export demand, at least during the next few months, has helped prop up local prices, according to the Thai Broilers Exporters Association.
 
But as a sign that farmers are scaling back livestock production, prices of feed ingredients continue to drop, with corn falling to THB6.60-6.77/kg from THB6.75-6.98/kg last week. Rice bran, another feed source, now sells at THB7.20-7.30/kg, down from last week's THB7.50-7.60/kg. 
 
 
Market analysis
 
Despite the current global economic downturn, overseas shipments of processed chicken remain stable so far, according to Dr. Anan Sirimongkolkasem, president of the association. The effect of the global recession, he said, could be felt next year when chicken exports are projected to be 5 percent less than this year's volume.
 
Although Japan, like the rest of the world, is in an economic slowdown, chicken export to that country continues to grow, although not at the same pace as it was during the first six months of the year, he said. He made the assessment after announcing a joint-venture agreement between his company, GFPT Public Co. Ltd., and Nichirei Foods Inc., Japan's top ready-to-eat food producer, to build a THB1.5 billion baht chicken processing factory in Thailand's Chonburi province.
 
The proposed factory is expected to produce 93,000 tonnes of ready-to-eat chicken a year for distribution in Japan.
 
Locally, chicken demand has tapered off during the last few weeks with the economy being hit hard by global financial meltdown and local political turmoil. The situation has been made worse when antigovernment protesters closed down two of Thailand's main international airports, leaving tens of thousands of tourists stranded.
 
The two airports have since resumed operations but foreign arrivals during this supposedly high tourist season are down almost 80 percent, according to tourism officials.
 
The loss of these tourists, Internal Trade Departments officials say, has contributed to the slack meat demand in the country.
 

Markets

Prices
for whole dressed chicken

as of 
Dec 4
(in Thai baht/kg)

Prices
for whole dressed chicken

as of  Dec 11
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Supermarkets (Bangkok)

70-75

70-75

0

Public markets (Bangkok)

62-63

62-63

0

Public markets (Suburbs)

55-58

55-58

0

Farm gate 

33-34 (liveweight)

33-34 (liveweight)

0

US$1=THB 34.825 (Dec 16)


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