Supply/Demand Basics

  • 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.

Country Overview

  • 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.

Policy Issues

  • 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.