June 3, 2025

Thailand poultry industry set to grow on Brazil bird flu, lower feed costs

Thailand's poultry sector is expected to expand in 2025, driven by market opportunities from a bird flu outbreak in top exporter Brazil and improved profit margins from lower feed costs, according to local industry leaders.

Prasit Boondoungprasert, chief executive officer of Charoen Pokphand Foods, Thailand's largest agribusiness, said the current market situation is favourable for the Thai poultry industry. "Prices are reasonably good, costs are low," he said.

However, gains for Thailand from Brazil's problems hinge on the length of the bird flu outbreak and the duration of import bans in some markets.

"If it's shorter than three to six months, the impact will be minimal. After that, there will be some upside," said Thai poultry exporter GFPT investor relations manager Veera Titayangkaruvong.

Brazil began a 28-day bird flu observation period last week, hoping to confirm disease-free status after disinfecting the affected farm.

Global prices of key feed ingredients such as corn and soymeal have declined around 30 % in recent years. And while lower costs benefit the industry globally, Thai firms such as CPF, GFPT and Betagro are well positioned due to control of fully integrated supply chains, from feed mills to farms and processing plants.

Major importers China and the European Union have in May suspended Brazilian poultry imports, while Japan halted meat imports from the southern Brazilian city of Montenegro due to an avian flu outbreak, opening a window for Thai exporters to capture market share.

-      The Straits Times