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Thai Livestock Exports Thrive, Experiencing 5.62% Growth in the First 7 Months

In a testament to Thailand’s prowess in the livestock sector, the Office of Trade Policy and Strategy (OTC) under the Ministry of Commerce has reported robust growth in the country’s livestock product exports for the first seven months of 2023, spanning from January to July. The surge in exports, driven by various factors, has propelled the total export value to an impressive $2,654.57 million USD, marking a significant 5.62% expansion when compared to the same period in the previous year.

Frozen and Processed Chicken Meat Dominates Exports: A substantial portion of Thailand’s livestock exports revolves around frozen and processed chicken meat, which has emerged as a cornerstone of the nation’s trade. The export value of this pivotal product category surged to an impressive $2,322.04 million USD, reflecting a commendable growth rate of 3.44%. Remarkably, this category accounts for a substantial 87.47% of the total value of Thai livestock exports.

Thailand’s Global Impact on Chicken Meat Exports: In a global context, Thailand’s prominence in the chicken meat export market is underscored by the fact that it commands a noteworthy market share. Data for the period from January to April reveals that Thailand holds a 12.06% share of the world’s imports of chicken meat, reflecting an increase from the previous share of 11.23%. This growth highlights the country’s expanding footprint in the global poultry industry.

Diverse Growth Across Chicken Products: A deeper analysis of the data reveals diverse growth trajectories within the chicken products segment. In the first seven months, the value of exports for Thai broiler chickens and related products witnessed an overall increase of 3.44%. Notable surges were observed in various subcategories: exports of whole broiler chickens, whether fresh, chilled, or frozen, recorded an extraordinary growth rate of 255.41%. Additionally, exports of meat and other chicken parts, fresh, chilled, or frozen, saw a substantial increase of 32.71%. However, flavored chicken meat exports experienced a slight decline of -6.79%.

Key Export Markets and Opportunities: Thailand’s pivotal export market for chicken products is Japan, contributing a substantial 40.95% to the value of chicken exports from Thailand to the world. In fact, Thailand commands a remarkable 51.90% share of Japan’s total imports in this category. Other significant export markets include the United Kingdom (17.26%), the People’s Republic of China (12.33%), the Netherlands (8.39%), Korea (5.04%), Malaysia (4.94%), and various other countries such as Singapore, Ireland, Germany, Canada, and France, collectively accounting for 11.09% of exports.

Exploring Untapped Export Potential: While Thailand boasts robust exports, there remain untapped opportunities for further expansion. A market analysis reveals that France, Germany, and Saudi Arabia are among the top three countries where Thailand has the potential to enhance export values. These markets present export target margins of $94.51 million USD, $76.50 million USD, and $57.90 million USD, respectively.

Navigating Challenges and Seizing Opportunities: Amid this promising outlook, it is imperative for entrepreneurs in the livestock sector to be prepared to address various challenges that may impact the production chain and global supply. Such challenges include escalating costs of animal feed, especially animal feed corn, due to geopolitical tensions such as the Russia-Ukraine conflict. Additionally, concerns surrounding the spread of bird flu in Brazil have raised concerns about the stability of the animal feed raw material market. However, risk factors notwithstanding, Thailand’s competitiveness in the global market is bolstered by various supporting factors.

Factors Supporting Export Growth: Factors contributing to the growth of livestock exports include China’s relaxation of import control measures following a downgrade in COVID-19 management. Furthermore, Thai factories engaged in the production and processing of frozen chicken have gained approval for additional exports to China. Currently, there are 20 factories eligible for export to China. The global trend toward increased consumption of broiler chicken, driven by its competitive pricing and health-conscious consumer choices, is another catalyst for growth. Additionally, ongoing Free Trade Agreement (FTA) negotiations are poised to enhance competitiveness and open new avenues for exports.

In conclusion, Thailand’s livestock sector is thriving, with livestock product exports demonstrating remarkable growth in the first seven months of 2023. The nation’s success in the global market, especially in the chicken meat segment, highlights its resilience and adaptability amid various challenges. With diverse growth trajectories and untapped export potential, Thailand’s livestock industry remains well-positioned to seize opportunities and navigate evolving market dynamics.

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