Thai chicken set to face fresh challenge

THAILAND - Thai chicken producers are expected to see competition rise and prices fall over the next few years due to huge new supply from Latin American producers, according to Nam-Dirk Mulder, an industry analyst for Rabobank.

Mr Mulder said Brazil and Argentina were both expected to boost production over the next two years.

Brazil exported 2.4 million tonnes of raw chicken and 45,000 tonnes of processed chicken in 2004, while Argentina exported 74,000 tonnes of fresh chicken.

Thailand last year exported 174,000 tonnes of processed chicken but shipments of fresh chicken were negligible due to the bird flu.

Mr Mulder said South American producers were boosting their exports to take advantage of the bird flu problems faced by Asian producers.

''Importing countries are the real winners,'' he said, with prices expected to fall due to increased competition in both raw and processed chicken.

But Thailand, with its relatively low labour costs, could still be competitive in the global poultry market.

Mr Mulder said Thailand should develop a national strategy to counter bird flu outbreaks and eradicate the disease. Compartmentalisation is needed to isolate outbreaks and limit the potential damage on the industry.

Source: Bangkok Post
calendar icon 30 March 2005
clock icon 1 minute read
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