It is expected that Thai chicken exports in 2017 will continue to grow over 2016 given the current H5 bird flu outbreaks confirmed in several other countries. The export increase should be substantial to Japan, being a major trade partner, and South Korea that has recently resumed imports of our chilled and frozen chicken imports because they have to ensure sufficient supply and maintain chicken price stability following the culling of birds to contain a bird flu epidemic there.
Given this, we at KResearch expect that Thai chicken exports in 2017 will rise over our previous projection of USD2.6-2.65 billion, representing a 4-5 percent increase, to USD2.7-2.75 billion, up 8-9 percent YoY. The additional increase is expected to compensate for supply shortfalls in Japan and South Korea as many consumers are concerned about the avian flu outbreak there, thus switching from chicken to other meats instead.
Despite these export opportunities, Thai public and private sector agencies must ensure that there will not be a bird flu outbreak here again for it is imperative that we prevent any impact resulting from import bans on our domestic chicken processing as seen in the past.