The calamity in Japan has affected their production of livestock because most of their major farms are in disaster-struck areas. In addition, a bird flu outbreak that hit Japan at the beginning of 2011 has led to the slaughter of around 200,000 broilers, so Japan has to import this product to compensate for that loss.
It is expected that Japan will increase their imports of processed chickens, as well as fresh, chilled and frozen chickens. Therefore, Thai processed chicken exporters should receive a windfall from higher export orders of processed chicken from Japan since Japanese authorities have imposed import ban on Thai fresh, chilled and frozen chickens since 2004. Nevertheless, our exporters may face intense competition from China, which has a price advantage over Thailand in terms of their average prices for processed chicken.
However, Thailand has the edge over China with our product diversification that can better respond to the needs of Japanese consumers, as well as our better image on food safety (without residues or contaminants). As a result, it is expected that the export value of Thai processed chicken to Japan in 2011 will likely grow by at least 15.0 percent, against the 11.5-percent growth seen in 2010.
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