Supply/Demand Basics

  • Feed mill production capacity of 20 MMT, with utilization of around 90%.
  • Poultry and swine feed are the major segments in the Thailand compound feed market, accounting for around 80% of the market in 2020.
  • 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 feed policy has been volatile; putting pressure on imports and price supports on locally grown commodities.

Country Overview

  • Thailand has been hit hard by COVID-19 due to its dependence on tourism but it is expected to rebound in 2022.
  • Thailand’s unemployment rate jumped to 2.25% in Q3 2021.
  • Heavy export dependent economy, with exports accounting for 2/3 of GDP.
  • 2021 GDP is expected to grow at 1.2% year on year.

Trade and Market Share Overview

  • Major U.S. DDGS importer (8th largest market in 2021).
  • New fumigation protocol for U.S. DDGS is hindering demand.
  • 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 between 3-4 million MT of wheat for food and feed usage.

Policy Overview

  • 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.
  • Import quota placed on feed wheat imports. A function of local purchasing.
  • Pending APHIS Bangkok PRC for Sorghum for Thai MOA to clear the pathway for U.S. sorghum imports into the country.
  • Additionally, we are pending the final resolution on the U.S. DDGS fumigation protocol between MOA & APHIS.
  • Phosphine was accepted by Thailand DOA in April 2021 as an approved fumigation treatment for U.S DDGS but will be closely monitored.