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International Egg and Poultry Review: Thailand

by 5m Editor
20 January 2010, at 10:45a.m.

THAILAND - By the USDA's Agricultural Marketing Service (AMS). This is a weekly report looking at international developments concerning the poultry industry. This week's report focuses on the Thai poultry meat industry.

The global economic downturn triggered by the financial crisis in mid-2008 affected both domestic and export demand for Thai poultry meat. Broiler meat production in 2009 is likely to be only two percent over the 1.2 million metric tons produced in 2008. A lower feed to poultry price ratio eased financial pressures in 2009. Prices for corn and soybean meal (SBM) account for 85 to 90 per cent of the broiler feed ration. In the first seven months of 2009 (January-July) dropped six per cent for corn and 23 per cent for SBM. Chick prices in the first seven months fell 27 per cent. Production is forecast to grow by four per cent in 2010 in anticipation of a higher demand into domestic and export markets, assuming there will be no serious disease issues and a global economic recovery.

Average chicken production in 2009 is estimated at 18 million birds per week, accounting for three-quarters of the country's production capacity. Thai broiler industry's farm facilities, breeding farms and broiler farms expanded substantially in early 2002-2003, shortly before Thailand was hit by highly pathogenic avian influenza (HPAI), H5N1 in January 2004. Export and domestic consumption plunged after the disease outbreak. Since demand recovered in 2005, independent chick producers and broiler integrators have watched the market closely and they adjust chick production to reflect actual demand.

Thailand's exports of cooked chicken meat are forecast to grow by seven to eight per cent in 2010 due to an anticipated recovery in the economy of importing countries. Thai cooked chicken meat exports to the EU and Japan account for 85 to 90 per cent of total exports. Other importing countries include Vietnam, Singapore, South Korea and Hong Kong.

The EU has a quota of 264,245 metric tons (MT) for salted poultry meat (EU HS code 02109939); Thailand's share is 92,610 MT, Brazil's share is 170,807 MT and 828 MT from third countries. The in-quota tariff is 15.4 per cent and out-of-quota is €1,300 per ton. The EU cooked chicken meat (EU HS code 16023219) quota is 250,953 MT and Thailand's share is 160,033 MT. In quota imports from Thailand are subject to an eight per cent tariff, the out-of-quota rate for cooked chicken meat is €1,024 per ton. Thailand reached the quota ceiling of 160,033 MT in 2008.

The EU recently notified the WTO of its plan to raise the import tariff on eight items of poultry meat products, including uncooked chicken meat products containing more than 57 per cent chicken meat; cooked chicken meat products containing 25 to 57 per cent chicken meat; and cooked chicken meat products containing less than 25 per cent chicken meat. These items are not currently under the EU tariff-rate-quota. In 2008, Thailand exported about 16,000 MT of cooked chicken meat products containing no more than 57 per cent chicken meat.

Thailand and Brazil have asked the EU authorities to raise the quota for chicken meat imports in 2010. According to reports, the EU wants to calculate its chicken quota based on the 'most favoured nation' principle, which combines the export statistics for all countries. Thailand and Brazil want the quota based on country-specific export statistics. According to one source, Thailand's rivals, China and Chile, would benefit from the new allocations if the EU does not use the country-specific system.

Thailand self-declared itself free from HPAI in domestic poultry on 27 February 2009 and has asked the EU to cancel its export ban on fresh chicken from Thailand. The EU has only accepted cooked poultry from Thailand since the HPAI outbreaks which began in 2004.
Source: UN Food and Agriculture Organization Food Outlook; USDA Foreign Agricultural Service GAIN Report; World Organization for Animal Health

Thailand's top markets in 2009 for cooked poultry meat under HS 1602.3290 are Japan (140,967,579 kg) and the United Kingdom (105,658,082 kg).

The top markets for cooked poultry meat under HS 1602.3900 are Japan (16,586,550 kg), the United Kingdom (7,887,803 kg) and the Netherlands (4,281,557 kg).
Source: Thai Customs Department of the Kingdom of Thailand



Further Reading

- You can view the full report by clicking here.