High feed costs, but positive growth for Thai poultry producers

17.09.2018

Thailand’s poultry industry is facing rising feed costs, but exports and consumption are expected to grow in 2018 and 2019. According to a recent USDA GAIN report, high feed costs – a result of the government’s intervention in domestic feed ingredients, will limit the industry’s growth. In the meantime, the industry has also struggled with below-breakeven prices for live broilers for almost 10 months from October 2017 to July 2018.

Against this backdrop, total meat production is forecast to grow by 4% in 2019, to 3 mt from 2.88 mt in 2018. Meanwhile, consumption growth in 2019 is expected to grow at a slower pace versus the projected 3% to 4% in 2018, as strong exports and slowdown in production are expected to raise broiler prices. Export of poultry meat products in 2018 will continue to grow at 8% to 820,000 tonnes, compared to 756,879 tonnes last year. This is projected to increase by 6% year-on-year to 870,000 tonnes on account of strong export growth to Japan and other non-EU markets.


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