Chicken meat production in Thailand is expected to increase by around 1% in 2021 and 3% in 2022, as domestic consumption slowly begins to increase alongside a gradual economic recovery.
Although well below the average annual growth rate of chicken meat production before the Covid-19 outbreak, total chicken meat production in Thailand increased by around 1% in the first half of 2021. A notable increase was observed in particular in cooked chicken meat (an increase of around 6% in the first half of 2021), while the production of raw chicken meat only increased by 0.3%.
Catering activities in Thailand in the first 6 months of 2021 have declined by around 14% compared to the same period in 2020, and the number of foreign tourists has fallen from 20 million before the pandemic to just 11,200. Photo : Chilimedia from Pixabay
An increase in feed grain prices resulted in high production costs for broiler breeders in the first half of 2021, increasing by 12% compared to the same period in 2020. The price of maize increased by 8% and the price of corn increased by 8%. 21% soybean meal. Thai feed industries filed a petition with the government in June 2021 to reduce tariffs on imported food ingredients. The average tariff rate on imported food ingredients is the highest among Southeast Asian countries. It is expected that the production of chicken meat in 2022 will increase by around 3% from 2021, in line with a gradual recovery in domestic consumption and exports of chicken meat.
China audits treatment facilities
The Chinese government is expected to approve more chicken meat export facilities in 2022. The audit process has been disrupted by the Covid-19 pandemic. The Chinese government has been auditing chicken meat processing facilities in Thailand since 2017 after China banned imports of Thai chicken meat due to an outbreak of bird flu in the country in 2004. China lifted the ‘ban in 2018 and approved 9 export facilities. China has now approved 22 out of 31 Thai chicken meat export processing facilities that have been certified by Thailand’s Department of Livestock Development.
From 20 million to 11,000 tourists
In the first half of 2021, domestic consumption of chicken meat, which accounts for around 70% of total chicken meat production, increased by 4% compared to the same period in 2020, rebounding from a contraction of 3-4% during the Covid-19 epidemic in 2020. Strict government measures to control the spread of Covid-19 have severely affected the restaurant industry. The Covid-19 pandemic and the cessation of tourism have also had a significant effect. Catering activities in the first half of 2021 decreased by around 14% compared to the same period in 2020, and the number of foreign tourists fell to around 11,200 tourists from 882,000 during the same period in 2020 and around 20 million tourists before the pandemic.
Domestic consumption of chicken meat is expected to increase by 1% in 2021 compared to 2020. Meanwhile, catering activities are likely to resume in the last quarter of 2021 as the Thai government relaxes measures. of Covid-19. National consumption of chicken meat is expected to increase by a further 3% in 2022.
Significant increase in cooked chicken
Chicken meat exports reached 519,228 mt in the first half of 2021, up 6% from the same period in 2020. Cooked chicken meat exports account for about 58% of total chicken meat exports and have increased by 6%. increased by 6% during this period. Thailand exported around 90% of its cooked chicken meat products to Japan (52%), the UK (25%) and the EU (11%). Exports of cooked chicken meat to the EU increased significantly by 29% in the first half of 2021, as Thailand benefited from the new EU tariff rate quota after Brexit in 2021. Exports of cooked chicken meat to Japan and the UK grew by 3% each due to their economic recovery from the Covid-19 outbreak.
Increased exports of uncooked chicken meat
Exports of uncooked chicken meat (excluding leg) account for about 35% of total chicken meat exports and increased by 9% in the first half of 2021. Exports of uncooked chicken meat to Japan, which accounted for 55% of total exports of uncooked chicken meat, increased 25%. This more than made up for the reduction in uncooked chicken exports to China (15% of total uncooked chicken meat exports) resulting from a gradual recovery in Chinese production of poultry and pork. Salted poultry exports (7% of total chicken meat exports), decreased by 11% in the first half of 2021 compared to the same period in 2020, due to competition from Brazil and Ukraine. Total chicken meat exports in 2021 are expected to grow only about 2% from 2020 and 3% in 2022. This growth in chicken meat exports is still well below the average annual growth in exports of about 10% over 5 years before the pandemic. .
A highly protected market
Thailand is a highly protected market where the government allows the importation of only certain types of poultry meat. The Thai government virtually bans US chicken meat products, and high import tariffs (30% for refrigerated or frozen uncooked meat and 40% for cooked chicken meat) and discriminatory import permit fees on uncooked products (around USD 208 / mt) help protect the domestic market from imports.
The information in this article was taken from a report by the Global Agricultural Information Network of the Foreign Agricultural Service of the United States Department of Agriculture.