Thailand’s poultry industry is poised for growth this year, driven by a combination of factors including disruptions in Brazil’s poultry exports and falling feed costs. As Brazil, the world’s largest chicken meat exporter, battles an avian flu outbreak, Thailand stands ready to seize new market opportunities as the third-largest global exporter.
Industry leaders in Thailand highlight that current conditions are favorable, with poultry prices remaining stable and feed costs dropping. However, the extent of the opportunity depends on the duration of Brazil’s avian flu outbreak and the length of import restrictions imposed by major buyers. Brazil is currently undergoing a 28-day observation period after disinfecting an affected farm, which will determine its future export potential.
Globally, prices for essential feed ingredients such as corn and soy meal have declined by roughly 30% over recent years, offering relief to producers. Thai poultry giants like Charoen Pokphand Foods, GFPT, and Betagro are particularly well-positioned, thanks to their fully integrated supply chains encompassing feed production, farming, and processing. This integrated model provides a competitive edge as global markets adjust.
Market dynamics are shifting as key importers, including China and the European Union, have suspended imports of Brazilian poultry. Japan has also halted meat shipments from certain Brazilian regions. These developments create openings for Thai exporters to gain market share, especially as buyers seek to diversify sources amid uncertainties.
In response to rising global poultry prices, some Thai producers are planning production increases. Idle poultry farms are being revived, with previously abandoned chicken coops put up for sale or rent. U.S. poultry prices, for instance, have climbed by about 3% in May, signaling strong demand.
The Brazilian poultry export disruption could affect up to 1.5 million metric tons of shipments. Analysts estimate Thailand has the capacity to fill between 300,000 and 400,000 tons of that gap, potentially generating up to $1.7 billion in additional revenue. Thailand’s strength in producing processed chicken products, which already account for over half of its poultry exports, further positions the country to meet rising global demand for convenient, ready-to-eat options.
Before the avian flu outbreak in Brazil, Thailand had projected a modest 2% increase in poultry exports for the year. Now, with global markets in flux, the country’s poultry industry may see even stronger growth, provided the export bans on Brazilian products remain in effect for an extended period.
