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24 Jun 2008

Agriculture

Processed Chicken, 2008: Exports Up 30%, Entrepreneurs Brace for Rising Production Costs(Business Brief No.2206)

คะแนนเฉลี่ย
In 2008, it has been projected that Thailand's exports of processed chicken will continue to rise over the level seen in 2007, thanks to growth in the export value of key markets, i.e., EU and Japan, as well as other new markets in Singapore, Canada and South Korea. China, as Thailand's key rival in the processed chicken export market, is currently unable to meet the required hygienic standards of importing countries. As a result, buyers have turned to importing more processed chicken from Thailand. The Thai processed chicken exports are more competitive than rivals, especially in Japan where Thai products enjoy tariff privileges as part of the JTEPA. Thailand's processed chicken export quota to the EU is also entitled to a low tariff rate.
Nevertheless, entrepreneurs in the broiler business and exporters of processed chicken are advised to brace for rising farming costs driven by soaring animal feed prices due to growing maize demand for the production of ethanol. Shrewd adjustments are needed by entrepreneurs to cope with rising production costs and this will be a key to their profitability in 2008.

For 2009, it is expected that Thai processed chicken exports will continue to grow because Thai products continue to enjoy favorable import tariffs per the JTEPA. However, it is expected that Thai processed chicken exports to the EU will decline during the latter half of 2009 because the export volume will reach the quota limit; thereafter, they will be subject to the off-quota tariffs. An interesting issue in 2009 will be whether the World Organization for Animal Health (OIE) will declare Thailand as an Avian Flu-free country. If so, the Kingdom will be able to export chilled and frozen fresh chicken again. Thai exporters will have to fight back for market share lost to Brazil and the US. Several interesting markets for Thai chilled and frozen fresh chicken in 2009 will include Russia and the Middle East, where there is ample room for Thai exports.

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Agriculture