Development of the layer industry began in 1950 at Kasetsart University. However, rapid development only began in the mid-1970s when commercial layer hybrids were introduced from western countries. Modern layer management is used in the industry, and each bird produces 250 to 260 eggs per year (Kanto 1991).
The broiler industry is completely integrated with feedmilling companies and mainly produces for export markets. The view of Siamwalla et al (nd) is that poultry has been the clear success of Thai livestock production (p. 7). They attribute this to a number of factors:
The introduction of modern breed of poultry, particularly for chicken and eggs;
The use of advanced techniques to raise poultry;
The pioneering of contract farming by large agribusiness companies in the early 1970s; and
Low feed prices, reflecting Thailands surplus in carbohydrates.
Between 1984 and 1995, chicken numbers increased by about 73 percent overall, with the largest increase in percentage terms occurring in the Central. Here chicken numbers more than doubled between 1984 and 1995 (Figure 4.1).
Figure 4.1 Distribution of chickens by region
Chicken farms are of three broad types (Kehren and Tisdell 1996). First, there are backyard farms where chickens are raised on a small scale for consumption by the farm family or as a source of supplementary income. In the mid-1980s, all but one percent of growers were backyard growers, and they produced about one third of production. By the mid-1990s, they accounted for less than 25 percent of production due to the expansion of commercial farms. Backyard growers provide little if any care to poultry; and consequently losses are high (Noppakun 1998). The second group of farmers are independent commercial growers who often engage in contract growing with smaller growers. The view of Kehren and Tisdell (1996) is that their numbers are likely to decline in the future because of their inability to benefit from economies of scale attained by the large commercial growers. The third group of growers are contract growers. They became important in the late 1970s when the Charoen Pokphand Company[7] introduced wage and price guaranteed contracts between chicken growers and hatcheries and feed companies. Large multinational companies now dominate the industry. Kehren and Tisdell (1996) report for example that 10 to 12 companies control about 80 percent of broiler production. Figure 4.2 shows the small farms tend to be involved mainly with the breeding of native birds while the large farms with over 10 000 birds tend to be involved in egg productions. Obviously most poultry are found on large farms. For example, about 140 million birds used for producing eggs were on farms with 10 000 birds or more. Most of the broilers used to produce chicken meat are on the large farms.
Sornnuwat (1994) points out that in the past, chicken meat was limited to the high income groups because it was relatively expensive. Real poultry prices have been in decline, resulting in poultry becoming more important in the Thai diet at the expense of other meats, including fish, buffalo and beef and pork. The chicken meat sold domestically can be in the form of the whole carcass or parts, such as head, neck, wings and breast meat. Some is bone-in and some is deboned. There is also further processing of poultry meat into chicken sausage, chicken ball and partly cooked products ready for reheating. Consumption of poultry was about 6.6 kg per person in the late 1980s and almost double this level a decade later.
Thailand has had success in exporting poultry, principally to Japan. Recently its share of the Japanese market has been pressured by exports from the United States, Brazil and China. Under World Trade Organisation rules, subsidies on broiler production will be phased out. Thai officials believe that since the Thai industry receives little in the form of subsidies, it should be able to gain a competitive advantage on international markets. Not everyone agrees with this. There are some who say that Thailands competitive edge is beginning to be lost to neighboring countries such as Vietnam and China because of rising wage rates in Thailand. The industry faces additional difficulties, including the following:
Parent stock and grand parent stock have to be imported causing high production costs;
Some feed stuffs used in the industry need to be imported. The significance of this is that feed represents about 70 percent to 75 percent of total production costs; and
Newcastle disease is a problem for exporters since most countries importing poultry require imports to be free of this disease.
Table 4.1 Production, consumption and exports of poultry from Thailand
Year |
Production |
Consumption |
Exports |
||||
|
(mill. birds) |
(000 t) |
(mill. birds) |
(000 t) |
(mill. birds) |
(000 t) |
(mill. Bt) |
1981 |
340.4 |
385.3 |
292.7 |
358.5 |
47.7 |
26.7 |
1 186.6 |
1982 |
416.9 |
471.8 |
357.6 |
438.6 |
59.2 |
33.2 |
1 310.0 |
1983 |
418.6 |
473.7 |
377.7 |
450.8 |
40.9 |
22.9 |
946.4 |
1984 |
430.9 |
487.7 |
369.9 |
453.5 |
61.0 |
34.2 |
1 419.7 |
1985 |
488.2 |
552.5 |
420.7 |
514.7 |
67.5 |
37.8 |
1 468.1 |
1986 |
504.2 |
570.7 |
388.7 |
505.9 |
115.5 |
64.8 |
3 121.3 |
1987 |
446.3 |
505.1 |
300.3 |
423.2 |
146.0 |
81.9 |
4 019.9 |
1988 |
458.1 |
518.5 |
287.3 |
422.7 |
170.7 |
95.8 |
4 869.9 |
1989 |
551.6 |
624.4 |
359.0 |
516.3 |
192.7 |
108.1 |
5 883.7 |
1990 |
488.5 |
552.9 |
240.8 |
413.9 |
247.7 |
138.9 |
7 589.7 |
1991 |
568.0 |
642.9 |
275.3 |
478.7 |
292.6 |
164.2 |
10 275.7 |
1992 |
725.6 |
821.3 |
414.0 |
646.5 |
311.6 |
174.8 |
10 399.3 |
1993 |
710.6 |
804.3 |
430.6 |
647.2 |
280.0 |
157.1 |
8 884.5 |
1994 |
646.5 |
731.8 |
373.7 |
578.7 |
272.8 |
153.0 |
9 854.4 |
1995 |
664.3 |
751.9 |
396.4 |
601.5 |
267.9 |
150.3 |
9 688.4 |
1996 |
684.0 |
774.2 |
381.0 |
604.2 |
303.0 |
170.0 |
12 000.0 |
Notes: The average broiler weight is 1.8 kg; the percentage of meat per broiler is 62.88 percent; and the weight exported per bird is 0.561 kg.
Source: Department of Livestock Development (1995) for data from 1984 to 1993 and Department of Livestock Development (1996) for 1994 and 1995 data.
Table 4.2 The quantity and value of exported frozen broiler meat, 1993 to 1999
Country |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
|||||||
(t) |
(mill Bt). |
(t) |
(mill. Bt) |
(t) |
(mill. Bt) |
(t) |
(mill. Bt) |
(t) |
(mill Bt) |
(t) |
(mill. Bt) |
(t)on |
(mill. Bt) |
|
Total |
156879.30 |
9394.80 |
160162.50 |
10374.50 |
168004.70 |
10597.90 |
126520.60 |
8457.50 |
148724.67 |
10945.76 |
208880.56 |
16973.76 |
222972.90 |
16386.70 |
Japan |
126404.40 |
7440.00 |
130789.60 |
8356.80 |
137029.50 |
8697.50 |
98364.10 |
6589.40 |
101314.13 |
7290.42 |
132860.54 |
10987.53 |
136556.48 |
10398.13 |
Germany |
10177.20 |
956.10 |
10538.10 |
1023.10 |
8399.30 |
721.40 |
9546.50 |
776.20 |
13524.04 |
1227.16 |
23777.71 |
2346.72 |
27755.69 |
2263.04 |
Singapore |
4464.40 |
223.10 |
5268.10 |
282.70 |
5547.70 |
320.20 |
3166.80 |
188.00 |
5237.95 |
339.24 |
6666.11 |
493.23 |
9856.28 |
644.48 |
Hong Kong |
4400.10 |
95.10 |
3385.40 |
89.70 |
3769.50 |
122.00 |
828.20 |
26.60 |
1686.43 |
75.80 |
4209.81 |
159.10 |
5261.34 |
183.18 |
Netherland |
3636.30 |
291.30 |
3037.40 |
306.10 |
3237.10 |
264.60 |
5524.90 |
384.20 |
12995.43 |
1085.02 |
15617.58 |
1339.74 |
14820.99 |
1052.26 |
Republic of China |
3095.30 |
93.80 |
2877.50 |
72.40 |
2749.80 |
65.90 |
999.10 |
20.10 |
2057.17 |
54.92 |
8365.16 |
230.21 |
4,954.66 |
124.07 |
Africa |
678.60 |
36.20 |
2328.30 |
131.10 |
1742.20 |
104.00 |
46.00 |
0.50 |
- |
- |
242.85 |
12.77 |
- |
- |
Kuwait |
1188.10 |
67.00 |
396.80 |
21.50 |
890.90 |
51.90 |
471.80 |
28.30 |
598.81 |
38.22 |
1,047.75 |
81.37 |
781.80 |
57.08 |
Switzerland |
422.50 |
23.50 |
457.00 |
29.20 |
689.60 |
41.30 |
107.90 |
9.70 |
- |
- |
45.98 |
5.09 |
- |
- |
United Arab Emirate |
598.80 |
31.20 |
152.90 |
9.30 |
573.60 |
34.80 |
23.00 |
1.40 |
78.65 |
7.13 |
347.03 |
32.12 |
12.00 |
0.84 |
Saudi Arabia |
160.80 |
7.70 |
210.80 |
11.70 |
529.80 |
32.30 |
46.00 |
2.70 |
22.98 |
1.75 |
116.98 |
13.78 |
46.99 |
5.13 |
England |
- |
- |
- |
- |
- |
- |
4086.80 |
277.00 |
3326.85 |
296.21 |
7,315.59 |
642.44 |
11287.98 |
913.84 |
Malaysia |
- |
- |
- |
- |
- |
- |
1845.90 |
106.40 |
2328.59 |
148.35 |
2,487.37 |
166.77 |
3316.64 |
158.18 |
Others |
1652.80 |
129.80 |
720.60 |
40.90 |
2,845.70 |
142.00 |
1463.60 |
47.00 |
5553.64 |
381.54 |
5,780.10 |
462.89 |
8,322.05 |
586.47 |
Source: Department of Livestock Development (1995) for data from 1984 to 1993 and Department of Livestock Development (1996) for 1994 and 1995 data.
Ducks are of some importance but mainly for the small farmers who use them for pest control, for home consumption and as an income supplement. The data in Table 4.3 show that duck numbers have been almost unchanged since the mid-1980s.
Table 4.3 Numbers of ducks in Thailand
Year |
Central |
North east |
North |
South |
Total |
1984 |
11 010 101 |
5 211 993 |
1 490 041 |
1 247 320 |
18 959 455 |
1985 |
10 957 388 |
5 383 053 |
1 557 609 |
1 500 211 |
19 398 261 |
1986 |
10 695 982 |
6 383 894 |
1 564 203 |
1 322 198 |
19 966 277 |
1987 |
9 580 908 |
7 321 415 |
1 649 665 |
1 279 043 |
19 831 031 |
1988 |
7 590 049 |
5 873 440 |
1 261 188 |
1 209 757 |
15 934 434 |
1989 |
8 609 346 |
5 225 727 |
1 553 434 |
1 294 869 |
16 683 376 |
1990 |
9 614 972 |
5 347 301 |
1 545 945 |
1 393 622 |
17 901 840 |
1991 |
10 398 969 |
5 934 037 |
1 416 574 |
1 373 984 |
19 123 564 |
1992 |
10 288 432 |
6 019 511 |
1 334 457 |
1 702 414 |
19 344 814 |
1993 |
11 742 093 |
6 420 269 |
1 821 108 |
1 794 925 |
21 778 395 |
1994 |
12 636 861 |
5 888 475 |
1 408 325 |
1 878 154 |
21 811 815 |
1995 |
10 564 520 |
5 118 910 |
1 431 412 |
1 781 793 |
18 896 635 |
1996 |
11 951 646 |
5 933 781 |
1 836 174 |
2 203 036 |
21 924 637 |
1997 |
11 470 759 |
6 027 409 |
2 176 228 |
2 155 500 |
21 829 896 |
1998 |
10 769 738 |
5 261 088 |
1 778 786 |
1 938 465 |
19 748 077 |
1999 |
13 863 676 |
4 695 818 |
2 271 464 |
1 499 165 |
22 330 123 |
1999/1986 |
1.26 |
0.90 |
1.52 |
1.20 |
1.17 |
Source: Department of Livestock Development (1995) for data from 1984 to 1993 and Department of Livestock Development (1996) for 1994 and 1995 data.
Table 4.4 shows how government officials in the Department of Livestock Development (DLD) hoped the industry would have developed by 2001. The number of broilers in Thailand was expected to increase almost four fold to 2 753 million birds, from the 1997 level of 672 million. Domestic consumption of broiler meat was expected to increase more than 10 times between 1997 and 2001. Native chickens were forecast to provide an increased quantity of meat per person (from 5 kg per person in 1997 to 12.5 kg per person by 2001). This is despite the large expected increase in the broiler industry. About 234 767 t (equivalent to about 754 million broilers) were expected to be exported. With regard to egg production, the DLD predicted that approximately 12.6 billion eggs would be produced and that about 75 percent of these would be consumed locally. Domestic consumption of eggs was expected to climb to 155 eggs per person each year, about 55 percent above the 1997 level. At the time of preparing this report, publicly available information was not available to judge whether these goals had been reached.
Table 4.4 Features of the poultry industry, 1997 versus 2001
Item |
Unit |
1997 |
2001 |
|
Broilers |
||||
|
· Broiler numbers |
000 |
672 000 |
2 753 354 |
· Consumption of broiler meat |
Kt |
59.4 |
622.9 |
|
· Exports of broiler meat |
Kt |
150.0 |
234.8 |
|
Hen eggs |
||||
|
· Layer hen numbers |
000 |
24 727 |
Na |
· Egg production |
mill. eggs |
9 000 |
12 600 |
|
· Egg exports |
mill. eggs |
3 000 |
3 300 |
|
· Per person annual consumption of eggs |
no. |
100 |
155 |
|
Native chicken |
||||
|
· Number of parents |
000 |
6 000 |
15 000 |
· Number of chickens |
mill. |
300 |
750 |
|
· Domestic consumption |
Kt |
300 |
750 |
|
· Per person annual consumption of native chicken meat |
Kg |
5 |
12.5 |
|
Duck meat |
||||
|
· Domestic consumption |
000 birds |
10 175 |
2 120 |
· Domestic consumption |
Kt |
11 |
24 |
|
· Meat exports |
Kt |
15 |
15 |
|
· Per person annual consumption of duck meat |
kg |
0.2 |
0.4 |
|
Duck eggs |
||||
|
· Domestic production |
mill. eggs |
13 |
60.2 |
· Domestic consumption |
mill. eggs |
12.8 |
60 |
|
· Per person annual consumption of duck eggs |
no. |
0.2 |
1 |
[7] The Charoen Pokphand Group
(CP) is a large multinational company with interests ranging from feed milling
to poultry production to restaurants and petrol stations. It has 80 000 to 100
000 employees and a turnover in recent years of the order of US$8 billion.
|