December 30, 2003

Asian Broiler Meat Trade Review 2003

World Trade: Total 2003 broiler meat exports by major exporting countries are forecast to return to record levels of 5.6 million tons, 4 percent above the 2002 estimate. The top four exporting countries, the US, Brazil, the EU and Thailand, are expected to dominate export markets due mainly to availability of supplies, price competitiveness, and for the EU, increased subsidies. For 2003, broiler meat imports by major countries are forecast at 4.5 million tons, up 2 percent from the 2002 estimate. China, the EU, Japan, Mexico, Russia, and Saudi Arabia are expected to account for more than 80 percent of imports.

Key Asian Exporters:

Thailand: Broiler meat exports for 2003 are forecast to increase 5 percent from the estimated 2002 level to 435,000 tons, due mainly to its competitive prices in Japan and the EU, the two largest markets for Thai broiler meat. Thailand supplies primarily value-added parts (semi-cooked and cooked products) to Japan, while it exports frozen parts to the EU. In response to the EU's detection of a veterinary drug (nitrofuran) in frozen products in March 2002, Thailand banned the use of the drug and its derivatives in production, and continues to improve testing facilities.

Key Asian Importers:

China: Broiler meat imports for 2003 are expected to decrease nearly 8 percent from the 2002 estimate to 350,000 tons, as an increase in production supports gains in consumption. This forecast excludes China's imports of chicken feet. Chicken feet imports were removed from the supply and distribution data series (1997 to date) to more accurately measure the size of muscle meat demand.

Japan: Broiler meat imports for 2003 are forecast at 700,000 tons, down nearly 7 percent from the 2002 level due mainly to rising stocks. Stocks (mainly frozen broilers) in June 2002 were reportedly up 31 percent to 116,000 tons from the corresponding period last year. However, imports of further processed products are expected to rise due to strengthening demand in the retail and food service sectors and competitive prices from Thailand and China.