Maize

 

 

Introduction

 

  • Maize is a major cash crop for the Thai economy.
  • The production of maize increased dramatically over a 20 year period from 1965 (1 million ton) to 1985 (4.2 million ton) – due to land clearing.
  • Since the mid 1980's annual production has remained steady, fluctuating in a range 4 – 4.6 million ton.
  • Local hybrid varieties have been developed as imported ones can not adapt to local conditions.
  • Hybrid seeds are popular with farmers who can take advantage of the high yielding and drought tolerance characteristics.
  • GMO maize seed is not used in Thailand. 
  • Thailand for many years was a net exporter of maize.  However, in recent years this position has reversed, due to rising demand from the livestock sector.

Production areas

    North (52.2%); Central plains (21.8%); Northeast (16%), unclassified (9.8%) – figures based on 1998/99 season.

    Major provinces:  Phetchabun, Nakhon Sawan, Uthai Thani, Lob Buri, Saraburi, Kamphaeng Phet, Phitsanulok, Loei, Nakhon Ratchasima, Udon Thani, Prachin Buri

Utilization

  • Maize is mainly used for animal feed, some is kept for seed.
  • In animal feed, maize accounts for 60-65% of the ration for broiler feed and 25-30% for swine feed.   
  • Total feed production in 1999 was 8.5 milion tons
  • About 70 commercial feed mills collectively account for almost 80% of the domestic feed production.
  • Livestock producers are increasingly buying maize to mix their own feed.

Domestic demand

  • Domestic demand for maize is the same as production about 4.3 million tons.
  • Domestic consumption is expected to increase in 1999/2000 by 4-5%, driven by an anticipated demand for broiler meat and recovery in the hog industry.

International trade

  • A small amount of maize is traded to ensure supply for the domestic market.  This buffer stock is necessary given that production matches demand. 
  • About 100,000 tons are usually imported as a safety stock.  Exports should be in this range.

Trends/ recent news

  • The maize crop in 1998/99 was about 4.3 million tons, a 16% increase from the previous season. 
  • Much of the increase was accounted for by expansion in the planting area as farmers switched crops.
  • Planting area contraction occurred in the 1999/2000 season.
  • This was due to farmers switching from corn to cassava or sugar cane.  The changes were driven by lower maize prices in the 1998/99 season.
  • Despite reduction in the planted area, the crop for the 1999/2000 season is forecast to be about 4.0 million tons.
  • Due to unexpected events late in 1999, crop estimates for the 1999/2000 season are thought to be inaccurate.  This sudden introduction of uncertainty has left the feedmills in a position of not being able to predict supply.
  • Feedmills have competed in recent months for local corn, this has driven-upward, the domestic corn price from Bt 252-258 /picul (US$ 108-110/ton) in September to the current Bt 306-318 /picul (US$ 130-136/ton).
  • Based on the outlook for domestic consumption and production, the estimate of total imports in 1999/2000 is suggested to be 300,000 tons.  

 

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