January 3, 2007

Thailand's shrimp exports to do well for 2007, but not chicken

Thailand's shrimp exports are expected to increase 20 percent this year while chicken exports would be hamstrung by higher feed costs, according to industry commentators.

Thailand's farm exports would remain strong this year, with exports possibly bringing 400 billion baht (US$11 billion) in revenue for the country despite the appreciating baht and the slowing economies in importing countries, analysts said. 

Shrimp exports last year, estimated at 340,000 tonnes or 80 billion baht. (US$2.2 billion) are expected to increase by 20 percent this year, due to higher yields from the white shrimp, said Somsak Paneetatyasai, president of the Thai Shrimp Association.

While shrimp exports are expected to do well, Thailand's chicken  exporters may be hamstrung by higher production costs such as more expensive animal feed, maize and other grains, according to Nopporn Vayuchote, executive vice-president of Betagro, a leading chicken exporter. 

Prices of maize have risen more than 30 percent over the past year due to drought, he noted.

Although chicken export prices would remain stable in 2007, the industry has become less attractive and fewer investments are expected, said Dr Nopporn.

Earnings from chicken exports in 2007 are forecast to increase 6.8 percent to 93 billion baht, compared to 87 billion baht in 2006.

In Thailand, the future of tapioca export looked bright, as several ethanol plants that use it as raw material are scheduled to be completed over the next two years. There may be higher demand for tapioca pellets from Thailand in Europe may as they are mixed in with feed.

Meanwhile, higher demand is expected to raise the prices of cassava by seven percent in Thailand.