Thailand

Market Snapshot 2018 - Thailand - Commodity Table

Supply/Demand Basics

  • 18 MMT total feed production.
  • Thai farmers shifting out of corn and opting instead for cassava.
  • Steady recovery in shrimp production seen after Early Mortality Syndrome outbreak.
  • Flattening feed production growth outlook.
  • Feed production breakdown: broiler = 40%, swine = 30%, layer = 20%.

Country Overview

  • Population / growth: 69 million / 3.5%
  • Urban / growth: 52% / 1.6%
  • GDP PPP: $1.229 trillion
  • GDP per capita: $17,800
  • Less than 1% unemployment rate due to large portion in subsistence farming.
  • Heavily export dependent economy, with exports accounting for 2/3 of GDP.
  • Tepid economic growth following a recession after the military coup.

Trade and Market Share Issues

  • Marked improvement in DDGS exports due to high energy ingredient prices.
  • Increased imports of feed wheat puts focus on mycotoxins in DDGS.
  • 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 1 MMT 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.
  • Military junta still controls the country after coup d’état. 2018 is marked to end the military rule and re-instate a new government.
  • No duty on imported wheat incentives imported feed wheat in feed rations.

Market Snapshot 2018 - Thailand - Chart