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Introduction
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- Poultry raising was
introduced as a form of subsistence food production in
1946 (after World War II); chickens were mostly raised
within the house compound.
- Production volumes of egg
and chicken meat products were low, but sufficient for
household consumption.
- 1956-1975, improved
livestock led to shortening of the poultry raising period
from 75 to 55 days (average duration required to raise
chicken up to target slaughter weight of 1.8 Kg.).
- 1973, Thailand
started exporting chicken meat, Bt 3.15 million was earned
from 163.2 tons of frozen chicken meat.
- 1976-1995, the
broiler industry entered an advanced stage of development.
- Through selective
breeding, growth and feed conversion ratios
improved.
- Production duration (to
1.8 kg slaughter weight) was further reduced to an
average of 45 days, 10 days shorter than before.
- The success of the poultry
industry is due to the integration of related businesses
and the application of advanced farming
facilities/technologies.
- The broiler industry is one
of the most developed in the agri-food sector. Enterprises
are vertically integrated from feed to retail.
- These systems comprise of
large corporations whose aggregate production share is
80%.
- Chicken production is
dominated by large-scale independent commercial farms that
usually have a long experience in chicken raising.
They,
- Usually employ modern
farm management to grow their broilers
- Undertake marketing for
themselves
- Exercise complete control
over their production and marketing. Hence, assume
the risks of variation in production, marketing, and
prices.
- Besides raising their own
broilers, growers also engage in contract farming with
smaller growers.
- Many small growers, due
to the high investment risk, usually take out price
guarantee contracts. This effectively integrates
them into the bigger companies.
- The Thai broiler industry
has emerged as an important export income generator.
- Both broiler integrators
and chick producers have enjoyed relatively low production
costs in recent years, due mainly to a decline in prices
for feed ingredients.
- Average prices for corn,
soymeal, and fishmeal from Jan-Dec 1999 dropped by 8,
15, and 18 percent, respectively.
- Average chick price in
1999 was 8.27 baht/head, as opposed to 9.38 baht/head in
1998.
- The current cost of
broiler production is 24.50 baht/kg, which is roughly a
sum of costs of a one-day chick (5.00 baht), feed (16.00
baht), vaccination and drug (0.80 baht), labor (1.50
baht), and other costs (0.70 baht), respectively
- Broiler meat production in
1999 was 980,000 tons an increase from 860,000 tons in
1997.
- Thailand is the seventh
largest chicken meat producer in the world.
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Production areas
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- The major zone for broiler
production is the central region; especially provinces
around Bangkok where infrastructure is good and markets or
ports close by.
- Main provinces: Chon
Buri is the main province (1997 produced 159 million
birds). Other provinces with a production > 8 million
birds - Chachoensao, Ubon Ratchathani, Khon Kaen, Nakhon
Ratchasima, Phitsanulok, Chiang Mai, Lop Buri, Saraburi,
Nakhon Nayok, Pathom Thani, Ayuttaya, Suphan Buri,
Ratchaburi, Prachin buri, Chumphon, Songkhla, Pattani.
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Domestic demand
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- With the recovery of the
Thai economy, domestic chicken meat consumption is
forecast to register 5-10 percent growth in 2000.
- In 1999, consumption
increased in line with improved economic conditions and
late in 1999 and a substitution of chicken meat for
expensive pork and beef.
- Reflecting the lower cost
of production and decreased export prices, wholesale
prices for live broilers reported by the Ministry of
Commerce in 1999 (Jan-Dec) dropped by 17 percent to 36.48
baht/kg. Likewise, the retail prices for chicken
meat also declined. The indicative prices for chicken
boneless breast meat at Bangkok, reported by the Ministry
of Commerce, were 71.01 baht/kg in 1999, as opposed to
71.20 baht/kg in 1998.
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International trade
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- Thailand's major exported
poultry commodities are in the form of frozen or processed
chicken.
- Frozen chicken constitutes
about 75% of the total poultry exports. Japan and
Europe consume 60% and 30%, respectively, of Thailand's
export of frozen chicken.
- A drop in chicken export is
anticipated for 1999. Both volume and value for frozen
chicken are projected at 200,000 tons and Bt14 billion
this year, down 9.4 and 18.7 percent, respectively.
- Robust growth, however, is
seen for processed chicken meat, and a yearly record is
expected at 70,000 tons, worth Bt9.8 billion, up 14.9 and
8.7 percent, respectively.
- Tough competition is
anticipated next year as major players, USA, Brazil, and
China, increase supply and, in the case of the latter two,
raise product quality.
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Trends/ recent news
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- Despite anticipated
stagnant exports of broiler meat, increased domestic
consumption should spur expansion of chick production in
2000.
- Local entrepreneurs are
improving production efficiency to minimize production
costs in an attempt to remain competitive in the world
market.
- Utilization of evaporated
cooling system in broiler farming has increased
significantly in recent years, mainly by integrated
producers.
- Generally, this practice
improves productivity on farm in terms of lower
incidence of mortality and better weight gain of
broilers.
- It is estimated that
about 50% of total broiler production is now raised
under this system.
- As a result, the feed
conversion ratio on a national-wide basis is around
1.90-1.95, as compared to 1.95-2.0 in 1999
- The forecast of broiler
meat production in 2000 is 1.05 million tons. This
represents an anticipated growth of 7 percent over 1999's
level.
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