Thailand has an ambitious plan to be the “kitchen of the world” and thereby secure its future as one of the most important food exporters globally. The country has a market leading position in areas such as rice and sugar cane.
In this Research Note from Ipsos Business Consulting, we examine the development of the industry in Thailand and consider the relevance of poultry to the “kitchen of the world” policy.
Livestock marketing and supply chain management of livestock products ILRI
Presented by Steven J. Staal as a keynote address at the 74th Annual Conference of the Indian Society of Agricultural Economics, Maharashtra, India, 18-20 December 2014
Livestock marketing and supply chain management of livestock products ILRI
Presented by Steven J. Staal as a keynote address at the 74th Annual Conference of the Indian Society of Agricultural Economics, Maharashtra, India, 18-20 December 2014
Au programme de cette conférence : état des lieux des résistances en strongles digestifs et coccidies, comment les détecter dans votre élevage, des solutions pour les éviter et les alternatives lorsqu’une résistance est avérée.
Problems and Prospects of Poultry Industry in Bangladesh: An Analysis Md. Moulude Hossain
The poultry industry has been successfully becoming a leading industry of Bangladesh. The primary objective of the study is to identify the various aspect relating the growth and ustainability of poultry industry in Bangladesh. Authors argued that strategic management in poultry sector requires complementing to achieve present Govt.’s vision of Digital Bangladesh 2021. Considering the importance of the country’s poultry industry in order to ensure the sustainable economic development it is now high time to step forward for the better accumulation of resources available from this industry. This industry proves various opportunities of increasing GDP growth rate plus equitable distribution through arranging food security as well as ensuring self-employment at a large scale as pointed out by the authors.
Hydropericardium syndrome(inclusion body hepatitis)Sumeet Jyoti
This presentation has been uploaded to share knowledge about hydropericardium syndrome. various references has been taken for this presentation and it is mainly focused in nepalese context.
Thank you!!!
Bovine tuberculosis epidemiology & control in indiaBhoj Raj Singh
Tuberculosis in India is in hyperendemic state both in human and animals. No DOTS can help in control of human tuberculosis unless tuberculosis is controlled in animals. Control of tuberculosis in animals is a far reacheachable dream in India and thus the Tuberculosis will persist in India till the dooms day.
Hydropericardium-Hepatitis Syndrome, Angara Disease in broiler chickenDr.Kedar Karki
This condition was first identified in broilers in Pakistan in 1987. It spread rapidly in broiler producing areas in that country and the same or a very similar condition has been seen in North and South America. It affects mainly broilers and broiler parents in rear and has also been seen in pigeons.
Differentiation of field isolates (wild) from vaccine strains (Marker, DIVA &...Bhoj Raj Singh
Nowadays vaccination is often reported as the cause of disease outbreaks. To ward off this misconception (vaccines are made to save the masses not to risk their lives)or to understand vaccination failures, it is necessary to understand the difference between a field strain causing the disease and a vaccine strain having attenuated virulence. This presentation talks about DIVA and DISA vaccines too.
Au programme de cette conférence : état des lieux des résistances en strongles digestifs et coccidies, comment les détecter dans votre élevage, des solutions pour les éviter et les alternatives lorsqu’une résistance est avérée.
Problems and Prospects of Poultry Industry in Bangladesh: An Analysis Md. Moulude Hossain
The poultry industry has been successfully becoming a leading industry of Bangladesh. The primary objective of the study is to identify the various aspect relating the growth and ustainability of poultry industry in Bangladesh. Authors argued that strategic management in poultry sector requires complementing to achieve present Govt.’s vision of Digital Bangladesh 2021. Considering the importance of the country’s poultry industry in order to ensure the sustainable economic development it is now high time to step forward for the better accumulation of resources available from this industry. This industry proves various opportunities of increasing GDP growth rate plus equitable distribution through arranging food security as well as ensuring self-employment at a large scale as pointed out by the authors.
Hydropericardium syndrome(inclusion body hepatitis)Sumeet Jyoti
This presentation has been uploaded to share knowledge about hydropericardium syndrome. various references has been taken for this presentation and it is mainly focused in nepalese context.
Thank you!!!
Bovine tuberculosis epidemiology & control in indiaBhoj Raj Singh
Tuberculosis in India is in hyperendemic state both in human and animals. No DOTS can help in control of human tuberculosis unless tuberculosis is controlled in animals. Control of tuberculosis in animals is a far reacheachable dream in India and thus the Tuberculosis will persist in India till the dooms day.
Hydropericardium-Hepatitis Syndrome, Angara Disease in broiler chickenDr.Kedar Karki
This condition was first identified in broilers in Pakistan in 1987. It spread rapidly in broiler producing areas in that country and the same or a very similar condition has been seen in North and South America. It affects mainly broilers and broiler parents in rear and has also been seen in pigeons.
Differentiation of field isolates (wild) from vaccine strains (Marker, DIVA &...Bhoj Raj Singh
Nowadays vaccination is often reported as the cause of disease outbreaks. To ward off this misconception (vaccines are made to save the masses not to risk their lives)or to understand vaccination failures, it is necessary to understand the difference between a field strain causing the disease and a vaccine strain having attenuated virulence. This presentation talks about DIVA and DISA vaccines too.
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Production of Bovine Meat in Vietnam – Opportunities for Exporting Thai Lives...Ha Thu
With the increased demand for meat of bovine animals (beef and buffalo meat), Vietnamese producers need to be more strategic in their plans in order to be proficient to supply local
demand. They also need to compete with foreign imports. Quantity of bovine meat per capita in Vietnam increased yearly by level of consumption. The Vietnam livestock industry has many weaknesses from production to marketing.
Switching Among Brands of Poultry Feeds: The Egg Farmers’ Acuity in Ogun Stat...AJSSMTJournal
In spite of the contribution of poultry to the protein intake and income generation of the growing
population of Nigeria, not many studies have been instituted at understanding the switching behaviour of the
poultry farmers when they make purchases of their major inputs, feed, which empirical evidences showed to
constitute about three-quarter of the variable cost of production. This study was therefore conducted to
address the gap by analysing primary data obtained from 480 poultry Egg-farmers in Ogun State through a
multistage sampling technique. The results revealed that poultry is a male dominated enterprise cutting across
two major religions in the country. Many of the farmers had been in operation for more than eight years and
are relatively educated with a mean age of 41 years. The Switching Cost (Monetized) indicated that, costs was
highest with Top feed users who opted for Vital feed at N2.20/bird/day and least for users of Hybrid who
considered Premium as an option at N0.12/bird/day. Similarly, Switching Cost (Psychological) revealed that
switching from Top feed to Premium feed will also be highest at 4.8 units and least with Hybrid to Chikun at
3.3 units. The study therefore recommended that feed producers should imbibe ways of increasing the likely
switching cost, both monetized and psychological that an Egg-farmer may incur if he switches to the Next Best
Alternative Brand through sound relationship management, lock-in programmes and reward of loyalty
Economic Analysis of Poultry Production in Sindh pakistansanaullah noonari
Poultry sector is one of the effervescent segments of agriculture industry in Pakistan. This sector generates
employment and income for about 1.5 million people. Its contribution in agriculture growth is 4.81% and in
Livestock growth 9.84%. Poultry meat contributes 19% of the total meat production in the country. The current
investment on poultry industry is above Rs. 200 billion. Poultry sector has shown a robust growth at the rate of
8-10% annually, which reflects its inherent potential. The study was design to investigate economic analysis of
poultry farm production, major objectives of the study were to asses' financial gain from poultry production,
primary data on poultry farms was collected from the farmers through personal interviews with the help of
specially designed questionnaire. A simple random sampling technique was used to collect the data. Statistical
techniques like means, comparison of means and frequency distribution was used for production cost and yield
analysis. On an average total fixed cost was Rs. 111500.00, labour input cost includes Rs 168000.00 on an
average per farm poultry farmer spent labour cost of production. This included Rs. 20000.00 on Supervision
(weekly visit), Electrician(when problem) Rs.4000.00, Feedings Rs. 40000.00, Cleaning Rs. 40000.00,
Watchmen Rs. 50000.00, Drinkers Rs. 22000.00 and Spraying(weekly spray) Rs. 6000.00 respectively. Selected
poultry farmers in study area on average per farm spent on marketing cost was Rs. 134000.00. This included Rs.
24000.OOfor loading, Rs. 86000.00 for transportation and Rs. 24000.00 of unloading. On an average per farm
total cost of production was Rs. 679756.00 and obtained physical productivity 7212 live birds and 12560 eggs
whose revenue productivity was Rs. 1096500.00 and net income was Rs. 326744.00, cost benefit ratio of the
cultivation of poultry at 1:0.48 it means that the poultry farmers obtained Rs. 0.48 on each rupee invested by
them. High profit was observed in poultry farming.
Cattle & Poultry Feed Manufacturing Business. Production of Livestock Feed Manufacturing. Profitable Premix and Animal Feed Industry
Animal feed plays a vital role in the food chain as feed is one of the most crucial contributor in ensuring safe, abundant and affordable animal protein. Incessant population growth and rising affordability has surged demand for animal protein in India. Animal feed industry deals with food given to animals in cattle, poultry and aquaculture sector as part of animal husbandry. Indian feed industry predominantly caters to cattle and poultry feed segment.
The feedstock is of different types depending on the end product such as for eggs or meat. Poultry feedstock is almost Poultry is the fastest growing livestock sector both in developed and developing countries. Poultry feed is the feedstock used for feeding the poultry for obtaining high quality, improves growth rate and lower the mortality rate. used in every poultry farm owing to its cost effective and desired results.
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Performance analysis of poultry feed marketers in Delta State, NigeriaAI Publications
This study examined the performance of poultry feed marketers in the Delta State in order to increase investments by potential investors in the enterprise which is economically viable. Delta State has been chosen for the study due to its high concentration of marketers in poultry feed. A sample of 75 poultry feed marketers were randomly selected from the markets in the study area. Data were collected using structured questionnaire and analyzed using descriptive statistics, multiple regression techniques and cost and return analysis. The mean age of marketers was 45years. Majority (57%) were males. About 64% were literate with 12 years of marketing experience. The mean household size was 6 persons. The mean bags sold daily was 3.3. Marketers sell different types of poultry feeds. The most common marketing channel was producer-wholesale-retailer-consumer. The regression results showed that buying price of the poultry feed, cost of transportation, market charges and cost of shop was negatively and significantly associated with profit while selling price, marketing experience and quantity sold showed a positive relationship with profit. The enterprise proved profitable with significant gross margin and marketing efficiency level of N51,181.87 and 81.6% respectively. The major constraints to poultry feed marketing were inadequate credit facility, transportation, insufficient market information and price fluctuation. It is recommended that credit facilities should be provided to the feed marketers to ease purchase of inputs. To further reduce the cost of initial purchase, the government and other agencies should consider subsidizing poultry feed.
Marketing of Poultry and Poultry Products in Itu Local Government Area of Akw...Agriculture Journal IJOEAR
Abstract— A survey was carried out to discover the marketing of poultry and poultry products in Itu Local government area of Akwa -Ibom State, Nigeria. The materials used were text books, personal observations, oral interview and questionnaires. Results obtained show that farmers in NtiatItam town consume more eggs per household than other towns in Itu Local Government Area surveyed Farmers in MbakAtai 1 produced more poultry droppings than farmers in other towns while more poultry droppings were distributed by traders in NtiatItam town.
To explore perceptions, Ipsos conducted a survey amongst a representative sample of more than 1000 Australians, which revealed that most people understand little about the range of technologies that fall under the AI banner and what they do know is informed by Hollywood — ‘the Terminator effect,’ if you like.
At a time when technology has the potential to change the way we travel, this new white paper reveals global consumer attitudes towards the prospect of fully automated cars.
Obesity is the third greatest social burden driven by human beings, after smoking and war, violence and terrorism. And while sugar consumption is far from the only cause of this, it is increasingly in the spotlight.
Foot on the Pedal - Opportunities Fuelled by a Booming ASEAN Automotive IndustryIpsos Business Consulting
ASEAN is one of the world’s fastest-growing markets, and has all the right elements for a robust automotive sector.
For more information, please email consulting.bc@ipsos.com
Indonesia, the Philippines, and Vietnam, which have led regional growth in healthcare over the past three years because of their on-going universal healthcare programmes, exhibit some of the sector’s strongest near-term potential within the region.
For more information, please contact consulting.bc@ipsos.com
Despite the relatively stable growing trend over the past few years, meat output has not managed to keep up with the consumption demand. Whilst domestic pork production is relatively sufficient for the domestic consumption demand, there is a significant shortage in the supply of beef and chicken.
For more information, please email vietnam.bc@ipsos.com
Indonesia’s DC construction market is expected to grow by 11.4% a year between now and 2020, supported by the expansion of colocation and managed hosting services provided by key DC suppliers to both large enterprises and SMEs.
For more information, please email indonesia.bc@ipsos.com
This presentation from the Ipsos automotive consultants in Korea covers:
- Domestic production sales
- Export to overseas markets
- Future technology such as connected cars, autopilot, eco-friendly cars etc
Email your questions and comments about the papers contents to korea.bc@ipsos.com
***NOTE: An English language translation of this presentation can be obtained by emailing korea.bc@ipsos.com, quoting "KAMA presentation"
Roti Bank Hyderabad: A Beacon of Hope and NourishmentRoti Bank
One of the top cities of India, Hyderabad is the capital of Telangana and home to some of the biggest companies. But the other aspect of the city is a huge chunk of population that is even deprived of the food and shelter. There are many people in Hyderabad that are not having access to
Ang Chong Yi Navigating Singaporean Flavors: A Journey from Cultural Heritage...Ang Chong Yi
In the heart of Singapore, where tradition meets modernity, He embarks on a culinary adventure that transcends borders. His mission? Ang Chong Yi Exploring the Cultural Heritage and Identity in Singaporean Cuisine. To explore the rich tapestry of flavours that define Singaporean cuisine while embracing innovative plant-based approaches. Join us as we follow his footsteps through bustling markets, hidden hawker stalls, and vibrant street corners.
At Taste Of Middle East, we believe that food is not just about satisfying hunger, it's about experiencing different cultures and traditions. Our restaurant concept is based on selecting famous dishes from Iran, Turkey, Afghanistan, and other Arabic countries to give our customers an authentic taste of the Middle East
3. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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Thailand's poultry industry
Agricultural and food industries are crucial to Thailand's aim to be the "kitchen of the world", a key government policy. Thailand was the world's 12th largest food exporter last year, with total shipments of 90bn baht (US$2.9bn) according to the National Food Institute. The Office of Agricultural Economics (OAE) expects the value of food exports to exceed 1 trillion baht this year.
The poultry industry was one of Thailand's most promising agri-food segments until it was devastated by the 2004 outbreak of Highly Pathogenic Avian Influenza outbreak (HPAI), or avian flu. However, it has proven resilient in the face of adversity and is now ramping up efforts to reclaim its share of the world poultry market, posting constant growth of 5 per cent CAGR from 2004 until the end of last year, according to OAE figures. Chicken meat production reached 1.4m tonnes last year, ranking it the country's no.1 meat product, followed by pork (0.9m tonnes) and beef (0.2m tonnes), according to OAE. Industry supply – estimated at 0.9m tonnes, up almost 40 per cent from the previous decade – was the main driver of domestic consumption. Essentially, Thai people are consuming more chicken now than they were ten years ago because of better prices and availability. Chicken meat is the least expensive source of protein in the meat market (Figure 2).
There is also now a wider range of commonly available chicken products such as boneless chicken meat, ready-to-cook chicken meals and chicken nuggets which can be purchased in hypermarkets and convenience stores. In addition, the rising popularity of fast food restaurants has played an important role in stimulating domestic consumption as leading chains such as KFC, Chester's Grill and Sizzler are offering more chicken menus as they aggressively expand their networks. Enjoying current CAGR of 8 per cent, the fast food industry is expected to maintain healthy growth for the foreseeable future.
Figure 1: Chicken meat production, Tons
Source: Office of Agricultural Economic, 2013
Figure 2: Retail price of pork, beef, and chicken in Bangkok 2004 to 2013
Source: Department of Internal Trade, 2013
0
500,000
1,000,000
1,500,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013(f)
Export
Domestic consumption
0
100
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Beef
Chicken
Pork
Baht/kg
4. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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4
Table 1: Broiler production in Thailand by region in 2012
Source: Department of Livestock Development
Figure 3: Chicken population density in Thailand
Source: Department of Livestock Development
Regions
Number of chicken broiler (head count)
Number of chicken broiler and layer households
North
84,870,740
727,051
Northeast
152,749,228
1,431,221
Central
748,207,109
341,792
South
70,107,629
381,548
Total
1,055,934,706
2,881,612
There are two main species of poultry produced in Thailand, chicken and duck (Wasan, 2011). Poultry population and production are highly concentrated in central Thailand as broiler producers need to be located near to certified slaughterhouses, feed mills and food processing plants. These facilities are also concentrated in central Thailand. Large-size farms, with an average 70,000 chickens per farm and complying with the FAO's farm practice standards sections 1 and 2 (see table 2), account for 90 per cent of chicken broilers in the central region (Rushton et al, 2007).
The integrated commercial farm standards in section 1 and 2 set very high biosecurity and standards and are currently cover 80-90% of national production. Traditional poultry farms (FAO sectors 3 and 4) are spread across the country and account for 10 per cent of national production with most of their produce being consumed locally (Helf-Neal et al, 2008).
5. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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The United Nations Food and Agricultural Organization (Table 2) established four sectors of poultry production systems based on their relative levels of biosecurity and the marketing and distribution of the birds and chicken products.
Table 2: Poultry production classification, FAO
Source: Ruston at el, 2007 and industry interviews.
Categories
Definition
Production contribution
Section 1 (Industrial integrated system)
High level biosecurity and bird/products marketed commercially
70% of national production
Section 2 (Commercial production poultry)
Moderate to high biosecurity and birds/products marketed commercially
20% of national production
Section 3 (Semi-commercial production)
Low to minimal biosecurity and birds/products marketed commercially
10% of national production
Section 4 (Village or Backyard farms)
Minimal biosecurity and birds/products consumed locally
70%
20%
10%
Integrated commercial farms
Large to medium commercial farms
Small commercial/backyard farms
5%
5%
90%
Integrated commercial farms
Large to medium commercial farms
Small commercial/backyard farms
Figure 5: Percentage of poultry producers
Figure 4: Breakdown of poultry production
Source: Calculated from Department of Livestock Development data and Helf- Neal et al,
Source: Calculated from Department of Livestock Development data and Helf- Neal et al,
6. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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Structural changes in the industry
The 2004 HPAI outbreak was a catalyst for wide-ranging structural changes across Thailand's poultry industry which have increased the scale of production and spurred a transition toward vertically integrated farms. It was clear something needed to be done after the avian flu resulted in the killing of 63m birds at an estimated cost of 96bn baht (US$3.1bn) (Na Ranong, 2008).
Increasing scale of production
Increasing scale of production by industrialising farms was a key structural reform that aimed to meet growing demand for poultry while controlling costs. The reform led to consolidation within the industry, which saw the average size of commercial farms increase while the number of producers declined. Table 3 shows how the number of commercial broiler producers declined by 32 per cent between 2008-12. However, the number of chickens raised in commercial broiler farms increased by approximately 55 per cent to an average 37,147 chickens per farm.
Major producers, such as Charoen Pokphand Foods, CPF and Betagro, have not only adopted advanced technology, they have also helped transfer this technology to smaller farms. Such technology has shortened the broiler period from 60 days to 40-49 days, improved the feed conversion ratio and reduced costs.
Table 3: Number of broiler commercial farms, number of chickens, and average farm size, 2008-12
Source: Department of Livestock Development
Table 4: Commercial broiler holding by farm size, 2012
Source: Department of Livestock Development
2008
2012
Growth (2008-12)
Number of commercial broiler farms
8,030
6,082
-32%
Number of chickens
101,841,267
225,930,564
55%
Average farm size
(number of chickens per farm)
12,683
37,147
66%
Regions
Number of chickens
Commercial broiler holding
Non-commercial broiler holding
500 - 1,000
1,001 - 2,000
2,001 - 5,000
> 5,000
Country
225,930,564
295
344
1,063
4,380
35,947
North
16,454,798
70
28
49
684
5,517
Northeast
29,788,673
37
23
65
655
19,639
Central
168,888,816
71
100
361
2,375
4,812
South
10,798,277
117
193
588
666
5,979
7. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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Vertically integrated farms
Major poultry exporters nowadays rely more on vertically integrated farms than contract farms to meet EU regulations on food safety and animal welfare. For much of the past two decades Thailand's broiler production relied heavily on contract farms where the exporter would provide farmers with day-old chicks and feed, medicines and some other supplies and then buy-back the raised chicken at a guaranteed price. Switching to vertical integration may increase risks, as broilers lack expertise in setting up and operating feed mills, however, this is outweighed by benefits from the transformation which include facilitating complete control of the production process, ensuring reliability of supply and improving production efficiency. The Thai broiler industry is aggressively industrialising and moving towards more vertical integration as a result. It is now commonplace for medium- to large-scale companies to own feed mills. Moreover, large integrated farms will even include (cooked and semi-cooked) food-processing plants as part of their integration (Figure 6).
Figure 6: Value chain map
Source: Calculated from Department of Livestock Development, Office of Agricultural Economics data, and Na Ranong, 2008
Domestic consumption : 947,458 Tones 65% of national production in 2012
Grandparent & Parent stock farm
Wholesale
Fresh markets
Grandparent and parent chickens are imported from USA and UK.
In 2012, Thailand imported 450,000 of Grandparent and parent chickens.
Hatchery
88 farms
Medicine
Broiler 7,612 farms
• Company Farms
• Contract Farms
• Independent Farms
Slaughterhouse
210 across the country, 25 Slaughterhouses possesses license from DLD to export chicken meat.
Feed
293 factories
Large retail
Restaurant
Processed Factory
69 factories
Supermarkets
Hypermarket
Export: 492,542 tones 35% of national production in 2012
• Chicken meat :75,000 tones valued at 4,801 million baht
• Processed chicken : 420,000 tones valued at 58,388 Million baht
Upstream
Downstream
8. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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The future of Thailand's poultry sector
Average domestic chicken consumption from 2004-12 stands at about 70 per cent of national production, making the local market the key focus of the Thai poultry industry. This year domestic consumption is estimated at 953,000 tonnes, about 65 per cent of forecast national production (OAE, 2013). The expansion of fast food chains and chicken's relatively cheaper price compared to other meats such as pork and beef, are expected to see domestic consumption continue to grow at a moderate but steady pace.
The export market is also on an upward trajectory. Current world chicken consumption is 80m tonnes, with growth of 3 per cent a year. Thailand recently clawed its way back onto the global leader board for chicken exports, ending last year in fourth position with an export value of 63.2bn baht (US$2bn) (OAE, 2013).
Japan is the major destination for Thai processed chicken products. Last year the country imported 212,673 tonnes of processed chicken, accounting for just over half of Thailand's exports of the product. Many countries including Bahrain, Hong Kong, South Africa, Russia, Philippines and some European Union member states, last year lifted their Avian flu-related import bans of uncooked frozen chicken products from Thailand. This move increased the potential for Thai poultry exports in those markets, which was a boon for the local industry. However, the top five Thai players – CPF, Betagro, Cargill, GFPT and Leamthong – account for approximately 70-75 per cent Thai chicken exports. This year alone CPF is targeting 90,000 tonnes of chicken exports, comprising 80,000 tonnes of processed chicken and 10,000 tonnes of frozen chicken.
Table 5: Key importers of Thai processed chicken products
Source: Thai Broiler Processing Exporters Association
Country
2010
2011
2012
Percentage
contribution
Volume
Value
Volume
Value
Volume
Value
Japan
174,011
23,421
189,103
27,901
212,673
32,836
53%
EU
195,620
23,533
195,207
25,248
195,432
24,269
39%
Singapore
11,648
1,401
12,648
1,650
13,023
1,794
3%
South Korea
10,164
1,126
10,997
1,231
12,662
1,465
2%
Hong Kong
4,275
444
3,553
450
4,154
580
1%
9. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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Challenges for the Thai poultry industry
Since most of the fallout from the avian flu outbreak has passed, the future of the Thai poultry industry will now largely depend upon basic economic factors, such as feed supply and demand. Another significant factor will be the move toward replacing chemical protection (antibiotics, antiseptics and vaccination) with enhanced biosecurity and compartmentalisation.
Feed supply and demand
The supply of essential raw materials for poultry production, particularly grain and protein, has become a key issue in determining the growth, competitive strength and future of the industry as feed accounts for about 70-80 per cent of the cost of chicken meat, depending on the fluctuation of feed mill prices (Pornsri, 2010). Thai Feed Mill Association estimated broiler and layer chickens consumed some 8m tonnes of feed, comprising 4.8 tonnes of maize and 2.2m tonnes of soybeans, last year. Thailand's promotion of biofuel production further complicates the issue as a large proportion of grain (such as maize) and tubers (such as cassava) production, as well as sugarcane, will be diverted toward lucrative gasohol and bio-diesel production, pushing the cost of animal feeds significantly higher.
Table 6: Domestic consumption and production of maize and soybean
Source: Department of International trade, 2012
Figure 7: The price of maize and soybean from 2001 to 2012
Source: Thai Feed Mill Association
Domestic production (Tons)
Domestic consumption (Tons)
Maize
4.6
4.8
Soybean
0.96
2.2
0
5
10
15
20
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Maize price
Soybean price
10. IPSOS BUSINESS CONSULTING THAILAND'S POULTRY INDUSTRY
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Biosecurity and compartmentalisation*
Department Livestock Development issued new farm standards in 2000 requiring all broiler farms producing for export to convert into closed systems. These regulations were more strictly enforced after the 2004 avian flu outbreak. Currently, about 7,000 of the 10,000 broiler farms nationwide that meet the department's new standards.
Most integrated broiler farms have now upgraded to these new standards which ensure higher levels of safety and the Thai poultry industry as a whole has adopted more stringent control systems.
Only about 5 per cent of broiler producers raise their poultry with minimal to low biosecurity as outlined in FAO sections 3 and 4. The breeds of chicken most commonly bred in backyard farms are highly susceptible to some common chicken diseases such Newcastle disease, fowlpox, fowl cholera and pasturellosis. These poultry producers usually rely on chemical solutions, such as vaccinations, antibiotics and antiseptics to prevent or cure these diseases. Thailand's animal health market was valued at 23bn baht last year. With global food demand expected to rise by 3-5 per cent a year, the local animal health market is forecast to grow by 5 per cent a year, according to the Animal Health Product Association.
Table 7: Top 5 animal health products in Thailand
Source: Animal Health Product Association
Relying on medical interventions is costly and such use can also result in import barriers to key markets. In light of the avian flu outbreak and the implementation of more stringent safety standards, biosecurity** appears to be the most effective solution for the industry.
Conclusion
Thailand's poultry industry has successfully recovered from 2004 avian flu outbreak and returned to dynamic growth. A positive outcome from the HPAI outbreak was that it forced the Thai poultry industry to adopt new farming practices, and a higher rate of adoption modern farming facilities, and industry restructure. With its new industry structures, Thailand will undoubtedly increase its production capacity and return to its former position as a recognised leader in global poultry exports.
The poultry industry has shown that is has a prosperous future, partly driven by the reopening of EU market and a greater presence in the Japanese and South Korean markets. To sustain and grow the market share in these high values markets it is inevitable that we shall see a greater level of investment in new climate control housing and leading edge biosecurity technique in the Thai poultry industry. Whilst the major corporations can easily absorb the cost of this investment, there is a question over the future of smaller
Products
Market values in 2012, (Million Baht)
Feed mills
6,340
Swine
6,352
Fishery
4,509
Broiler industry
1,873
Pet industry,(Cat and Dog)
1,626
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Footnote
*Compartmentalisation is a system to control and monitor disease on livestock farms.
The OIE has defined the process as "an animal subpopulation contained in one or more establishments under a common biosecurity management system with a distinct health status with respect to a specific disease or specific diseases for which required surveillance, control and biosecurity measures have been applied for the purpose of international trade".
Great Britain has defined‘poultry compartment’or other captive birds compartment as a holding or holdings under a common biosecurity management system containing a poultry or other captive bird sub-population with a distinct health status with respect to avian influenza subjected to appropriate surveillance, control and biosecurity measures.
**Biosecurity can be defined as actions taken to reduce the risk of infection entering a farm and to remove infection from a farm (Food Standard Agency, 2006).
farmers and whether they can meet the financial strain associated with investment in a poultry farming upgrade. Climate control housing, closed system and leading edge biosecurity technique, all present significant financial demands on the smaller farmers. How will they grow their business in an industry where they cannot always afford access to modern poultry farming techniques. Whilst these farmers only account for approximately 10% of poultry production, they are 90% of the poultry famer population and therefore require consideration.
The estimated future growth of the Thai poultry farming sector is impressive and the industry is actively seeking to improve the quality of the feed ingredients and nutritional supplements. The industry benefits from government policies aimed at growing the industry and the size of the export market (though these policies are favoured towards the large players). Notwithstanding rising operational costs, there is a great deal of opportunity for players in each stage of the value chain. The only significant question is what will happen to the smaller farmers and whether they can survive in an industry that is increasingly skewered towards the large players.
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References
Department of Livestock Development, Poultry statistics annual data, http://www.dld.go.th (Retrieved 1 August, 2013)
Department of Internal Trade, Retail price of fresh chicken in Bangkok, http://www.dit.go.th (Retrieved 1 August, 2013)
Department of International Trade Promotion (DITP), Poultry export data, http://www.thaitradelondon.com (Retrieved 1 August, 2013)
Department for Environment, Food and Rural Affairs of Great Britain 2009
Compartment for protection against Avian Influenza and Newcastle disease in poultry breeding companies in Great Britain. EU Council Directive 2005/94/EC, Article 2:11
Food and Agricultural Organization of the United Nations (FAO), (2004), "Recommendations of the prevention, control and eradication of Highly Pathogenic Avian Influenza in Asia" FAO position paper, September 2004. Rome: FAO, 2004; 16:1-59
Heft-Neal S, Otte J, Pupphavessa W, Roland-Holst D, Susdsawasd S, Zilberman D. (2008), "Supply Chain Auditing for Poultry Production in Thailand"
Na Ranong, V. (2008),“Structural Changes in Thailand's Poultry Sector and its Social Implications” Thailand Development Research Institute, Thailand.
National Food Institute, NFI, Annual statistical data: http://fic.nfi.or.th/ (retrieved 1 August, 2013)
Office of Agricultural Economics, OAE, (2012) "Thailand Agricultural Industry Statistics 2012" (in Thai)
Pornsri, L. (2010) "The direction of the global and Thai agricultural industry" (in Thai)
Rushton J, Viscarra R, Bleich EG, McLeod A. "Impact of the avian influenza outbreak on the poultry sectors of five Southeast Asian countries (Cambodia, Indonesia, Lao PDR, Thailand, Vietnam) outbreak costs, responses and potential long-term controls". Rome: F. TCP/RAS/310:2007; 10:1-25
Wason, C. and., Kaneene B (2011) "Poultry raising system and highly pathogenic avian influenza outbreak in Thailand“
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