Thailand Livestock Report
Economic Overview of Thailand 2008 The Thai economy remained resilient through the first three quarters of this year, amidst the sharp rise in food and fuel prices. In the first three quarters of the year, real Gross Domestic Product (GDP) expanded by 5.1 percent year-on-year, compared to 4.6 percent in the same period of 2007. This was led by the robust export growth of 25 percent year-on-year in US dollar terms and 9 percent in real terms, not withstanding the continuous appreciation of the baht. Private consumption and investment also grew by more than they did in 2007, despite the sharp increase in food and fuel prices. On the other hand, public consumption and investments in real terms have contracted in the first three quarters as a result of slow disbursement rates amidst political instability and slow project completion as raw material prices rose sharply. Real GDP growth in 2008 is 2.6 percent as the global economic slowdown and domestic political unrest weigh upon growth in the last quarter. Growth in the last quarter drops sharply to less than 1 percent year-on-year as exports of goods are negatively affected by the deceleration in demand of Thailand's major export markets. Exports of services, of which more than half are tourism receipts, have also been severely affected by the political unrest since October. As a result, manufacturing and services growth in the last quarter of this year will slow down considerably. Layoffs and work hour reduction, particularly in the manufacturing sector, have also started to rise, while private investment slows. As job security and income growth uncertainties increase, consumer confidence is falling and household consumption growth has shown clear signs of a deceleration. These trends will extend into Year 2009 as the global economy continues to slow. Source : www.worldbank.or.th Thailand Economic Monitor December 2008
Market Analysis 1.
Statistic of Livestock in Thailand 2007 – 2008
Statistic of Livestock in Thailand 2007 (Thousand Heads) Duck
24,953 283,126
Chicken
51
Sheep
445
Goat
9,300
Sw ine Buffalo
1,578 8,848
Cattle
489
Diary 0
25,000
Diary
50,000
Cattle
75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000
Buffalo
Swine
Goat
Sheep
Chicken
Duck
Statistic of Livestock in Thailand 2008 (Thousand Heads) Duck
22,722 235,600
Chicken
44
Sheep
374
Goat
7,741
Sw ine Buffalo
1,360 9,112
Cattle
470
Diary 0
25,000
Diary
50,000
Cattle
75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000
Buffalo
Swine
Goat
Sheep
Chicken
Duck
Source : Department of Livestock Development (www.dld.go.th) The statistic above shows the composition of Livestock in Thailand in 2007-2008. The figure indicates that Chicken and Duck remain their position, while Cattle move to the 3rd rank instead of Swine. However, the major factors that make overall market value decrease are the increasing in fuel prices and cost of production as it’s already mentioned in economic overview 2008.
2.
Meat Export Market of Thailand
Meat Products exported from Thailand in 2007 Market Value 42.5 Thousand Million Baht 6.3%
3.4% 1.0%
89.3%
Chicken meat
Duck meat
Pork
Beef
Meat Products exported from Thailand in 2008 Market Value 61.2 Thousand Million baht (Growth 44%) 5.0%
3.1% 1.3%
90.6%
Chicken meat
Duck meat
Pork
Beef
Source : Bureau of Livestock Standards and Certification, Department of Livestock Development 2007 Market Value 42.5 Thousand MB 2008 Market Value 61.2 Thousand MB The above charts represent the sharp growth of 44% in export market. The composition of the market consists of Chicken (91%), Duck (5%), Pork (3%) and Beef (1%). It implies that Thailand’s major export of meat is Chicken and Duck. In addition, the ranking of the export market remains constant.
3. Meat Export to Global Market Source : Information and Statistics Group, Information Technology Center Department of Livestock Development (Jan-Nov 08)
Chicken exported from Thailand to Global Market Market Value 46.1 thousand million baht 27.4% 46.2%
26.5%
Japan
England
Other
The first rank of meat export to global market is Chicken with total market value of 46,100 million baht. The importers are Japan (46.2%), England (26.5%), Netherlands (9.2%), Vietnam (4.3%), Germany (3.7%), Singapore (2.3%), Ireland (1.8%) and other respectively.
Thailand Leading Companies in Chicken Production CP
4% 4% 5%
Sun Valley Ltd. 29%
8%
Betagro Saha Farms GFS
14%
GFPT Public Co.,Ltd. 14%
22%
Laemthong Food Products Other
Source : Thailand export chicken Association data on 2008
As the chicken industry has the highest value in Thailand, the market share are consisting of Charoen Pokkapan (CP) 29%, Sunvalley Ltd. 22%, Betagro 14%, Saha Farm 14% and so on. The total production level is around 24,176 tons per month in 2008 comparing with 23,376 tons per month in 2007. It is noticeable that the productivity and market expansion have developed time by time.
Duck exported from Thailand to Global Market Market Value 2.1 thousand million baht 8.0% 11.3% 45.8%
34.9%
England
Germany
Netherland
Other
Regarding the total export market, duck is the second with estimated market value of 2,100 million baht. For the export of duck to global market, the major importers are Europe countries such as England 45.8%, Germany 34.9%, Netherlands 11.3%, Ireland 2.4%, Belgium 1.3% and other respectively.
Pork exported from Thailand to Global Market Market Value 1.8 thousand million baht 2.2% 27.9%
69.9%
Japan
Hongkong
Other
Thirdly, the exports of Pork to global market, the major importers are mainly in Asia for instance Japan 69.9%, Hong Kong 27.9%, Cambodia 1.1%, Singapore 0.7% and other respectively. The estimated total market value is 1,800 million baht.
Beef exported from Thailand to Global Market Market Value 6.5 million baht 4.8%
1.6%
93.6%
Japan
Australia
USA
Lastly, the export of beef to global market is estimated about 6.5 million baht. The major importers are Japan 93.6%, Australia 4.8% and USA 1.6% respectively.
4.
Livestock Equipment Industry
Estimation of Livestock Equipment Sales
2,875
Total Market Value (Million baht)
2,600
3,317
2,700
2,800
Year 08 Est
2,900
3,000
3,100
3,200
3,300
3,400
Year 07 Est
Source : Thairegistration.com
Regarding the positive growth of livestock export market especially Chicken, Pork and Beef, livestock equipment reacts in the same direction. The growth of livestock equipment is remarkable with 15% growth rate, approximately 3,317 million baht comparing with 2007. The major business firms in this industry have been mention on the following data;
Leading Companies in Livestock Equipment Industry 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
KPI Kasetphand Industry Co.,Ltd B. International & Technology Co.,Ltd Munters Thailand Co.,Ltd Karoon Brothers Co.,Ltd Hutek (Asia) Co.,Ltd BD Agriculture Thailand Ltd (Big Dutchman) Dan-Tech Co.,Ltd Delta Vet Co.,Ltd Dynamic Engineering Co.,Ltd Top Products Supply Co.,Ltd
(31% market share) (12% market share) (11% market share) (11% market share) (7% market share) (8% market share) (5% market share) (2% market share) (2% market share) (1.5% market share)
