July 18, 2003

Thailand Chicken Export Volume And Prices Expected To Stay At Current High Levels Until End 2003

Thailand chicken exporters have orders from Japanese buyers through to November with prices as high as US$3,000 a ton for boneless legs.

Export prices were expected to stay at current high levels in all major markets until the end of 2003, said Anan Sirimongkolkasem, the president of the Thai Broiler Processing Exporters Association.

Thailand's poultry exports received sudden and strong boosts in Japan and the EU, after setbacks encountered by its main competitors, China and Brazil in the two major markets.

Japan has banned chicken imports from China in May after the outbreak of bird flu there. In June, the EU found nitrofurans in Brazilian chicken.

Meanwhile, the relaxation by the EU on 100 percent checks on Thai chicken imports to 20 percent random check would reduce Thai exporters' costs.

100 percent testing procedures at buyers' ports of entry was as high as 112 euros (about 7,330 baht) a container, said Pornsri Laurujisawat, manager of the association.

She said that the EU had detected no banned chemicals in Thai meat since June, due to the concerted joint efforts of the government and private sector to resolve the problem. She added that they had invested in more than 200 million baht on testing instruments that met the EU standards.

This year, Thai exporters are expected to post revenues at least 50 billion baht, from 40.8 billion in 2002. It will be the first year that value would surpass volume, said Miss Pornsri.