July 30, 2003
Broiler Producers In Thailand Extends Agreement To Cut Output Until End Of October
Broiler producers in Thailand have agreed to extend production cuts for another 10 weeks to sustain the current high price of chicken in domestic and overseas markets, Sooksunt Jiumjaiswanglerg, president of the Broiler Breeder Association, said Wednesday.
This is the second extension of an output cut plan agreed by the association's 27 broiler companies members.
In March, the broilers agreed to cut chick production by 15% to 18 million to 19 million chicks a week from March 27 to May 25. Then in May, they agreed to extend the cut for another 10 weeks to Aug. 24.
The new cut will last from Aug. 24 to Oct. 31, Sooksunt said.
"The output cut plan will help sustain and stabilize chicken prices...in both domestic and international market," he said.
The price of chicken in the domestic market has risen to 35 baht a kilogram ($1=THB42.093), from around THB27/kg in late May and THB19/kg before the program started in March.
The export price of Thai chicken sold to overseas markets is also higher.
For the Japanese market, chicken is being sold for around $3,000 a metric ton, up from around $1,250/ton earlier this year.
Thai chicken exports to the European Union have climbed to $2,400/ton, from $1,700/ton early this year, also due partly to the E.U.'s relaxation of quality checks against Thai chickens, Sooksunt said.
Taiwan's recent acceptance of Thai chicken for the first time in five years will also help boost demand and prices, Sooksunt said.
Japan and the E.U. are Thailand's biggest chicken export markets.
Thailand, the world's leading chicken exporter, generally exports around 450,000 tons of chicken a year, but this year's exports are forecast to total 500,000 tons, Sooksunt said.