June 26, 2008

Thai poultry processor GFPT is expecting a sales growth of 15-20 percent due to several positive market conditions.
 

While feed prices have increased about 20 percent on-year, prices of processed chicken products have also risen 30 percent from last year's fourth quarter to US$4,000 to US$4,500.

Executive committee chairman Anan Sirimongkolkasem said processed chicken products are expected to trade at US$4,500 to US$5,000 per tonne in Japan and US$5,000 to US$6,000 per tonne in the EU in the third quarter.

In the first quarter of 2008, GFPT sales went up 29 percent to US$67.6 million, marking a net profit of US$3.2 million, up 374 percent.

Anan attributed the increased sales to growth in the EU and Japanese markets as well as the declining competition from China where food safety issues had hindered exports.

The high EU quota for Thai cooked-chicken products and a cut in tariff rate for in-quota cooked chicken meat from 10.9 percent to 8 percent is also a business advantage for GFPT.

Japan had also lifted a limitation on the number of poultry meat processing plants it would inspect and approve in Thailand, allowing more plants to export to Japan, according to Anan.

Under the Japan-Thailand Economic Partnership Agreement, Japan will reduce its tariff rate on chicken meat from 6 percent to 3 percent in five years.