November 3, 2011

Thai Broiler Weekly: Government claims chicken production intact despite flooding (week ended Oct 27)

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Price summary
 
While prices of most other food products have risen due to widespread panic buying, Bangkok's chicken prices remain unchanged despite the city's deepening flood crisis.

The ex-farm price for live birds has been holding firm at THB44/kg in the capital, although it has fallen to THB34-36/kg in the northeast, Thailand's most economically depressed region. As in Bangkok, live bird and broiler meat prices in other parts of the country have been largely stable during the week.
 

Market analysis

This stable price condition belies industry claims that Thailand's worst flooding in six decades has caused a big drop in local broiler production.

The manager of the Thai Broiler Processing Exporters Association, Kukrit Areepakorn, said last week that chicken output has dropped by 10-20% from its normal weekly level of 23 million birds as a result of the flooding, which has hit around 26 provinces around Bangkok. 
 
According to him, a number of poultry farms in flood-hit provinces had either shut down or scaled back operations.

He added that the widespread flooding had also resulted in logistics problems, as farms that were dry could not transport their chickens to the market because of inundated roads.

The Department of Livestock Development, however, said its latest survey showed broiler production had only dropped by 1% in the aftermath of the flooding.

The department's director-general, Trisadee Chaosuanchareon, said the survey was done in the six worst-hit provinces of Lopburi, Nakornsawan, Chinat, Singburi, Ayuttaya and Nakornnayok.

In Lopburi, 80% of big farms are located on higher ground, and were therefore spared from the flooding, he said. Most farms in low-lying areas had their stocks relocated or sold in time.

He said the same thing happened in the flood-hit provinces of Chinat, Singburi and Angthong.     

He added that only 5% of the country's broiler processing factories are located in the industrial estates in Ayuttaya and Pathumtani. The two estates remain under deep water and are not in operation.

With most broiler farms and processing factories operating normally, Trisadee said he remained confident Thailand could meet its chicken export target of 450,000 tonnes this year.
 

Markets

Prices for whole dressed chicken
as of  October 20(in Thai baht/kg)

Prices for whole dressed chicken
as of  October 27(in Thai baht/kg)

Changes
(in Thai baht/kg)

Supermarkets (Bangkok)

135-145

135-145

--

Public markets (Bangkok)

75-85

75-85

--

Public markets (Suburbs)

70-80

70-80

--

Farm gate 

44(Liveweight)

44

--

US$1=THB 30.79 (November 3, 2011)

 

 
 
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