Thai poultry industry poised for growth on Brazil bird flu lower feed costs

BANGKOK - Thailand’s poultry sector is poised to grow in 2025, as an avian flu outbreak in top exporter Brazil creates market opportunities, and lower feed costs improve margins for the world’s third-largest shipper of chicken meat, industry leaders said.

Mr Prasit Boondoungprasert, CEO of Charoen Pokphand Foods, Thailand’s largest agribusiness, said the current market situation is favourable for the Thai poultry industry. “Prices are reasonably good, costs are low,” he said.

However, gains for Thailand from Brazil’s problems hinge on the length of the bird flu outbreak and the duration of import bans in some markets.

“If it’s shorter than three to six months, the impact will be minimal. After that, there will be some upside,” said Mr Veera Titayangkaruvong, investor relations manager at Thai poultry exporter GFPT.

Brazil began a 28-day bird flu observation period last week, hoping to confirm disease-free status after disinfecting the affected farm.

Global prices of key feed ingredients such as corn and soy meal have declined around 30 per cent in recent years. And while lower costs benefit the industry globally, Thai firms such as CPF, GFPT and Betagro are well positioned due to control of fully integrated supply chains, from feed mills to farms and processing plants.

Market Share

Major importers China and the European Union have in May suspended Brazilian poultry imports, while Japan halted meat imports from the southern city of Montenegro due to an avian flu outbreak, opening a window for Thai exporters to capture market share.

“Customers are increasingly thinking about risk management. If they rely too much on Brazil... they have to diversify,” Mr Prasit told Reuters.

US poultry prices have risen 3 per cent in May. Mr Veerapong Panjawattanakul, owner of Pongsak Agricultural, said he plans to increase production by 5 per cent, while Somchit