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13 Mar 2009

Agriculture

Processed Chicken, 2009: Trade Partners Slow Imports (Business Brief No.2453)

คะแนนเฉลี่ย
This year, the processed chicken industry differs from what was seen in 2008 – considered the ;golden year” for the processed chicken industry – when chicken farms did so well from domestic sales and exports. At that time, they enjoyed profitability, although animal feed prices were quite high. Raisers were able to sell broiler chickens at prices as high as Baht16-16.50/per kilogram, and live chickens at Baht36-37/head. In addition, exporters were able to fetch as much as a historically high Baht135/kg. for broilers.
Since the end of 2008, the prices for live birds, however, have dropped to Baht27-28 per head, which is lower than their production cost of Baht30/head. Baby chicks dropped to Baht4-5/chick, against a production cost of Baht9/head, because last year's high chicken prices induced farmers to expand stocks. Currently, as high as 19.5 million baby chicks are being produced per week, against the normal rate of 17.5 million heads/week. The export market in January 2009 was slowing. Chicken exports to the European Union had dropped 12.9 percent, against 96.7-percent growth in January 2008. Meanwhile, exports to Japan dropped 61.2 percent in January 2009, against export growth of 74.2 percent in January 2008.

As a result, those involved in the poultry industry should adjust themselves to cope with changing market situation by reducing production toward levels commensurate with demand in the market. This will help the entrepreneurs to survive amid the downward trend in chicken exports. The hope that chicken product exports would be as good as in 2008 is fading, wherein the export volume and value in 2009 will likely fall to 360 million tons with a value of Baht45.4 billion. The export volume and value in 2009 may thus drop 6.0 and 12.0 percent, respectively.

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Agriculture