Ministry explores new markets for chicken exports as domestic sales plummet

By The Nation

 

 

The Commerce Ministry is aiming to boost chicken meat exports by 10 per cent this year after Covid-19 dragged domestic consumption down by 50 per cent.

 

Exports in the second and third quarters are expected to be lower than usual, as importing countries have enforced lockdown measures.

 

Head of the Thai Association of Poultry Exporters Dr Anan Sirimongkolkasem said that chicken meat export in the first quarter had expanded by 7.21 per cent compared to the last quarter of the previous year, however the lockdown in various countries, especially the US, EU and Japan, might lead to lower exports by 5 per cent.

 

However, due to dwindling Covid-19 cases in Thailand, the demand for Thai chicken meat is increasing in countries such as Japan and South Korea which usually imported the meat from Brazil where the Covid-19 situation is getting more serious.

 

The pandemic has led to a 50 per cent slump in domestic chicken consumption, slashing the price from the normal Bt33 to Bt34 a kilogram to Bt24 to Bt25 per kilogram.

 

Commerce Minister Jurin Laksanawisit held discussions with private chicken meat providers and exporters such as CP, Betagro and Thai Broiler Processing Exporters Association to evaluate the export situation. They urged the ministry to seal free trade agreements with the EU and Britain, fixing chicken meat import quota at around 280,000 to 320,000 tonnes a year and to seek lower British import tariff from US$1,000 a ton.

 

The ministry also was asked to seek new markets in Japan and to lobby China to approve Thai processed-chicken factories in order to export processed products and expand the duck meat market.

 

The private sector requested the ministry to establish new markets in South Korea, Philippines, Saudi Arabia and Taiwan.

 

“If we can do it, exports will expand by Bt33 billion over last year, totalling Bt140 billion,” Jurin said.

 

Some 920,000 tonnes of chicken meat were exported in 2019, valued at Bt109 billion while in the first three months of 2020, 230,000 tonnes were exported, increasing 7.21 per cent. Japan, Britain, China, Netherlands and South Korea are a key factor, he said.

 

The potential for increase in exports depends on sorting out two types of markets: eight countries that already imported Thai chicken meat, such as Japan, Britain, Netherlands, Hong Kong, Ireland, Canada, South Korea and Singapore, and 19 countries in which Thailand has a low market share, such as the US, Belgium, Denmark, Austria, Sweden, Britain, Germany, Hong Kong, Saudi Arabia, China, France, Netherlands, United Arab Emirates, Mexico, Iraq, Angola, South Africa, Philippines and Taiwan.

 

Thailand can produce 2.86 million tonnes of chicken meat a year, the eighth biggest provider of the world. Around 60 per cent are for domestic consumption and 40 per cent for exports.

 

Source: https://www.nationthailand.com/news/30386596

 

-- © Copyright The Nation Thailand 2020-04-23

 

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Just as well CP have switched to mask production....

Yeah Yeah; next thing you know there will be a 'shortage' of Chickens and therefore the price will increase by 100% !

Why is chicken consumption down due to covid, market closures?

3 minutes ago, fondue zoo said:

Why is chicken consumption down due to covid, market closures?

Good question!  People still have to eat. 

1 hour ago, Grumpy John said:

Good question!  People still have to eat. 

And to eat you have to have money to buy food !  

The Commerce Ministry are living in LaLa land if they think chicken exports are going to increase by 10 % this year. Every KFC and other cheap chicken fast-food outlet is closed at the moment across Europe, with no plan for reopening restaurants for some time to come, so exports are going to decrease greatly. Because of SARS and other previous public health concerns about Thai chicken exports, it can only export frozen and processed products, much of which goes to the fast food industry. With it shut for the forseeable future, Thailand would do better with trying to get its house in order and move to a more sustainable footing for its agriculture industry, rather than helping these agribusiness giants that rape the environment and screw small farmers to make their huge profits. CP has been allowed to become a Frankenstein monster of a company that is eating Thailand alive.

Um... did the Commerce Dept check today’s Baht overpricing?  Here we go again.  The Baht is at a six week high.  Thai industry and exports will die off, just like tourism.  Wuhan virus and an overpriced Baht will do immeasurable harm to this country.

4 hours ago, Grumpy John said:

Good question!  People still have to eat. 

Restaurants closed. I used to use 20 kg chicken a week just 1 kg a week now

I find this story confusing - they keep saying they have not enough eggs and now they are killing too many chickens that people are not eating. Seems quite obvious solution to me.

What, people stopped eating because of corona? Or did half of the population die when I turned my back?

15 minutes ago, Isaan sailor said:

Um... did the Commerce Dept check today’s Baht overpricing?  Here we go again.  The Baht is at a six week high.  Thai industry and exports will die off, just like tourism.  Wuhan virus and an overpriced Baht will do immeasurable harm to this country.

Much of the world is teetering on the edge of a depression/already in one.

Property prices will fall, and other investment opportunities will open up and a strong Baht will be jolly important to those influential people who take an interest in such matters. Don't expect their possible forthcoming bonanza to be interfered with!

5 hours ago, fondue zoo said:

Why is chicken consumption down due to covid, market closures?

I would say in our house are consumption has increased since Covid19, chicken soup,chicken soup, or soup chicken.