by Eric J. BROOKS

 

With religious demographics that restrict consumption of beef and pork among many of its citizens, chicken is Southeast
Asia's meat of choice. Yet its production, consumption or importation is distributed very unevenly among ASEAN's diverse citizenry.

 

Within the constraints of Southeast Asia's high population and small arable land endowment, no animal protein line is more suitable for domestic cultivation. One nation even turned it into an exportable agricultural line.

 

Even so, everything from perverse government policies to cultural preferences for red meat prevent Southeast Asia from reaching its true potential for chicken consumption and production.

 

Based on USDA figures, Muslim majority Malaysia, Indonesia and Brunei produce 44% or 3.4 million of the 7.8 million tonnes of chicken meat produced within ASEAN. Add the production of export oriented Thailand and four Southeast Asian nations produce two-thirds of its chicken.

From a low of 6kg in Vietnam and a near ASEAN average of 17kg in Thailand, chicken meat consumption runs as high as 45kg in wealthy Singapore or 55kg in Malaysia, where it is the one protein which their religiously diverse societies can agree on. At 8.8%, ASEAN's share of world chicken production is slightly above its 8% share of the global population, but is destined to double over the next two decades.

 

But even within large poultry producers, the industry's scale, model and competitiveness at producing chicken varies greatly. Thailand, for example, is not just the leading ASEAN chicken grower, it is also the most competitive and export-oriented.

 

While it is blessed with more corn growing land relative to its 66 million population, it makes no effort to protect its feed crop farmers. Nominally, self-sufficient in corn and a large soy importer, it offsets above average chicken production costs with low labor and transport costs. The former gives it an advantage in cooked chicken lines such as ready-to-eat meals, while its proximity to markets like Japan gives it a shipping cost advantage within East Asia.

 

As a result, unlike the rest of ASEAN, Thailand stands out for exporting 39% or 730,000 tonnes of the 1.87 million tonnes of chicken meat it will produce this year. Had it not encountered a costly mid-2000s bird flu epidemic and been banished from world markets for eight years, Thailand would probably be exporting over a million tonnes and 50% of its broiler meat production by now.

 

One reason Thailand can afford to do this is because it is a majority Buddhist nation. Indonesia, Malaysia and Singapore have religious minorities that prohibit the consumption of either beef or pork. Due to Thai religious tolerance, its 17kg of per capita chicken consumption is complimented by 15kg of red meat. Approximately 13kg is accounted for by domestically produced pork, with mostly imported beef making up the other 2kg.

 

Thailand notwithstanding, there are essentially two broiler industry models. The wealthy city states of Singapore and Brunei import almost all their chicken. In the rest of ASEAN, domestic broiler meat accounts for most production, but both growth rates and import penetration vary greatly.

 

 

The full article is published on the May 2017 issue of LIVESTOCK & FEED Business. To read the full report, please email to inquiry@efeedlink.com to request for a complimentary copy of the magazine, indicating your name, mailing address and title of the report.