December 23, 2019

Thailand set to increase poultry exports to China next year

A Thai industry association said exports of chicken to China will go up 60% in 2020 as China looks overseas for meat imports to supplement dwindling meat stocks in the country because of African swine fever (ASF), reported Reuters.

Kukrit Arepagorn, Thai Broiler Processing Exporters Association manager said Thailand chicken exports to China is forecasted to increase to 80,000 tonnes next year.

He said in 2019, 50,000 tonnes of chicken were exported with only 18,000 tonnes exported in 2018 to China.

Seven poultry factories were approved for export to China in March last year, with eight more factories approved in November 2019 for exports in 2020, said Kukrit.

He added that 12 more factories are pending approvals, which are expected to be granted next year.

Even with added purchases from China, the association said total chicken exports from Thailand are projected to increase by 4.26% only, to 980,000 tonnes. Its exports to its two top buyers, Japan and the European Union, have dropped this year because of the strong Baht making export prices less competitive when compared to Brazil, its biggest competitor.

Thailand's exports to Japan is expected to increase to 440,000 tonnes this year (only 0.92%), while exports to the European Union will be flat at 324,000 tonnes.

However, Kukrit said there is a free trade agreement between Southeast Asia and China that Thailand benefits from, in addition to a shorter one-week delivery time as both countries are neighbours.

In comparison, chicken from Brazil face a tariff from China and requires 50 days for delivery.

-      Reuters