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Thai chicken industry cuts production as global demand drops


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Thai chicken industry cuts production as global demand drops

By The Nation

 

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Thai chicken exports rose less than expected in the first half of this year, due to the Covid-19 fallout, the Thai Broiler Processing Exporters Association said.

 

Thailand exported 470,000 tonnes of chicken in the first six months, up 2 per cent year on year, with export value of Bt54 billion, up Bt1 billion.

 

The Covid-19 pandemic caused Thailand’s two main markets, the European Union and Japan, to cut chicken imports, said Kukrit Arepagorn, the association's manager.

 

"Chicken exports to the EU dropped by 10 per cent as the Covid-19 situation there is not yet resolved. We expect Thailand to export 280,000 tonnes of chicken to the EU this year, down from 330,000 tonnes last year," he said.

 

Meanwhile, chicken exports to Japan only rose by 2 per cent because the virus outbreak had hit tourism and forced the country to postpone the Tokyo Olympic Games, reducing demand.

 

However, he said exports to China and Singapore had increased by 100,000 tonnes and 20,000 tonnes respectively in the first six months.

 

"Although demand for chicken in China increased, Thailand cannot increase production because China is ordering only chicken wings and feet," he said. "Currently, chicken breast cannot be exported to the EU, causing a decline in price."

 

He said the situation in the second half of this year would not improve because the Covid-19 situation in the EU persists, adding that the association had kept its chicken export target this year at 980,000 tonnes.

 

"If the EU contains the spread of Covid-19 and a vaccine is becomes available, the chicken export situation will get brighter," he said. "Currently, we are trying to find markets in neighbouring countries who may be seeking more chicken as the pork price is high."

 

He added that most Thai chicken businesses have cut production in line with falling demand.

 

However, "production costs have not increased much as the price of corn and soybean remain stable", he added.

 

Source: https://www.nationthailand.com/news/30392559

 

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-- © Copyright The Nation Thailand 2020-08-07
 
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26 minutes ago, webfact said:

Thailand cannot increase production because China is ordering only chicken wings and feet,"

Try the parsons nose with them as well if they eat feet ( that was unavoidable ) .. 

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27 minutes ago, webfact said:

 

"Chicken exports to the EU dropped by 10 per cent as the Covid-19 situation there is not yet resolved

Don't blame it on the sunshine 

Don't blame it on the moonlight

Don't blame it on the good times 

Blame it on the CV .. 

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7 hours ago, webfact said:

"Although demand for chicken in China increased, Thailand cannot increase production because China is ordering only chicken wings and feet,"

If I was PM, I would ask THAI scientists to create chicken with 6 or more feet and 6 or more wings

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2 hours ago, ExpatOilWorker said:

Thailand's own CP group is relocating a lot of their food production to Vietnam. 

 

https://www.nationthailand.com/Corporate/30359954

 

They are not relocating per se, they are building additional facilities for supplying (primarily) the EU market when the FTA agreement is finally completed and cooked chicken is given the green light for export.

.

 

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1 hour ago, Bender Rodriguez said:

too many hormones?

 

Cooked chicken CAN be exported to the EU from Thailand but not currently from Vietnam.

Believe it or not, the exported chicken is generally of very good quality and is hormone-free for the EU market

 

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5 hours ago, ExpatOilWorker said:

Thailand's own CP group is relocating a lot of their food production to Vietnam. 

 

https://www.nationthailand.com/Corporate/30359954

For reference - CP is also established in Cambodia (quote):-

 

CP Cambodia, a subsidiary of Thai conglomerate Charoen Pokphand Company Limited, has confirmed plans to double its swine production by 2019 to meet Cambodia’s demand for pork products. ...

 

Interesting to see the chicken and pork products industry is, in my opinion, monopolized by the CP Group - price controls???????

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52 minutes ago, Don Mega said:

When they cut production, do they just dispose of the chickens in an incinerator or something ?

I guess they just cancel some breeders contracts

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6 hours ago, Chelseafan said:

 

Cooked chicken CAN be exported to the EU from Thailand but not currently from Vietnam.

Believe it or not, the exported chicken is generally of very good quality and is hormone-free for the EU market

 

EU has the strictest food regulations in the world. Meat has been free from hormones there for a long time already. And yes they check so surely no supplier would take that chance.

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9 hours ago, Burma Bill said:

For reference - CP is also established in Cambodia (quote):-

 

CP Cambodia, a subsidiary of Thai conglomerate Charoen Pokphand Company Limited, has confirmed plans to double its swine production by 2019 to meet Cambodia’s demand for pork products. ...

 

Interesting to see the chicken and pork products industry is, in my opinion, monopolized by the CP Group - price controls???????

 

CP are the biggest player for the local market but there are alot of other producers for the export market such as GFPT, Cargills, Betagro, Crown etc. Whilst I buy from CP, I diversify my sourcing across another 5 vendors.

 

 

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Considering that the decline in the EU market is from the catering industry its not a bad drop in chicken exports overall. Seems like one area thats not been hit too bad by Covid repercussions. 

 

I would have thought domestic/supermarket sales would go up as people in the EU tighten their belts and taking into account chicken is cheap protein.

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6 hours ago, MRToMRT said:

Considering that the decline in the EU market is from the catering industry its not a bad drop in chicken exports overall. Seems like one area thats not been hit too bad by Covid repercussions. 

 

I would have thought domestic/supermarket sales would go up as people in the EU tighten their belts and taking into account chicken is cheap protein.

 

Food service still in a lot of trouble for sure but they are not the biggest importer of chicken from Thailand. A lot of their material comes from Brazil or Eastern Europe where the source material is marginally cheaper

 

What we're seeing (as a retailer) is that people are still avoiding going to resturants and instead treating themselves at home. Chicken sales continue to be in significant double-digit growth versus single digit pre-covid.

 

Perhaps Coq au Vin is making a comeback 🤔

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