- Feed mill production capacity of 22 MMT, with utilization of around 91%.
- Poultry and swine feed are the major segments in the Thailand compound feed market, accounting for around 80% of the market in 2018.
- Demand for aquafeed is expected to remain high due to increased modernization in aquaculture and an increased demand for seafood.
- SEA’s 3rd largest producer of corn (5.3 MMT).
- Thai farmers shifting out of corn and opting instead for cassava.
- Population / growth: 69 million / 0.3%
- Urban / growth: 50% / 1.7%
- GDP PPP: $1.236 trillion
- GDP per capita: $17,900
- Tepid economic growth following a recession after the military coup in 2014.
- Heavily export dependent economy, with exports accounting for 2/3 of GDP.
- Strong growth in tourism and exports of manufacturing goods are expected to continue in 2019.
Trade and Market Share Issues
- Major U.S. DDGS importer (4th largest market in 2018).
- New fumigation protocol for U.S. DDGS will hinder demand in the near future.
- High domestic corn prices are driving the increase in co-product demand.
- Reliance on EU poultry exports gives buyers concern over antibiotic residue.
- Feed industry dominated by large, sophisticated buyers.
- Home to one of the world’s leading feed producers, Charoen Pokphand.
- Imports around a million MT of feed wheat, mostly from Ukraine.
- Trade distorting import tariff differential between DDGS (9%) and SBM (2%).
- 54,700 MT corn TRQ with 20% in quota tariff and 73% out of quota tariffs.
- No duty on imported wheat incentivises imported feed wheat in feed rations.
- Military junta still controls the country after coup d’état. Presidential elections are scheduled for February of 2019, signalling the end of the military government.
- We are currently pending for APHIS Bangkok to present the PRA to the Thai MOA, to clear the pathway for U.S. Sorghum imports into the Country.