SOUTH KOREA – Imports of US pork and beef rose at a far faster pace than those of other overseas meat products this year.
This was the result of a contagious animal disease, the South Korean government data show, reports Yonhap.
Imports of US pork spiked about 2.5-fold from a year ago to 82,569 tons in the January-May period, with overall pork imports rising 121 per cent to 179,985 tons, according to the data by a government quarantine agency.
Information ThePigSite News Desk
VietNamNet Bridge – The Ministry of Industry and Trade (MOIT) has proposed to import 100,000 tons of pork, while the Ministry of Agriculture and Rural Development (MARD) believes that there’s no need to import meat.
MOIT has proposed to import pork because it believes the imports would help ease the current shortage which has pushed the prices up to the levels unbearable for consumers. Meanwhile, MARD believes that the domestic supply is big enough to meet the demand. It has expressed the worry that consumers would, once again, say “no” to pork because of the blue-ear pig epidemic.
The survey conducted by MARD showed that at the Long Bien wholesale market in Hanoi, pork is selling at 91,000-106,000 dong per kilo, which means the increase of 25-27 percent in comparison with Tet holiday.
The Minh Hien poultry and animal slaughtering factory in Hanoi, which has the designed capacity of 5000 fowls and 1000 pigs a day, has reported that very few people come here these days to purchase pork for reselling.
The representative of the factory said that the slaughtering costs are relatively high because of the heavy investments on the factory’s equipment. Therefore, though the State asks to sell products at low prices to stabilize the market, it cannot slash the sale prices any further, or it will incur losses.
Meanwhile, livestock farms cannot enjoy preferences to implement the duty of stabilizing the market. This means that the State assigns the duty of stabilizing the prices to slaughtering workshops, not to breeders.
MOIT believes that it is necessary to import pork, because the prices have become overly high. The increasingly high food prices, plus the increasing petroleum prices and basic wage increases have all put a hard pressure on people. Farms now sell pork at 60,000-62,000 dong per kilo of live weight.
The pork prices have been increasing because one month ago, small merchants rushed to collect pork from southern provinces and carry to the north and sell to China to make profits. This has led to the sharp fall in the supply. Also, the epidemic, plus the increasingly high feed prices have forced farmers to raise the prices.
It is estimated that Vietnam will need 2.9 million tons of meat of different kinds this year, an increase of 6.5-7 percent over 2010. Therefore, MOIT has proposed to import 100,000 tons of pork.
Nevertheless, MARD believes that the domestic supply can meet the domestic demand.
The ministry has admitted the pork shortage, but it said the shortage is not worrying. The total output of pork in 2011 would still reach 3.3 million tons of live weight. As the epidemic has been driven back, farmers would resume the farming, which would make the supply more profuse towards the year end.
MOIT is the agency which takes the responsibility of balancing the supply and demand of essential goods in order to stabilize the domestic market. Whether to import pork will still be discussed by the two ministries, and for the time being, consumers have to buy food at overly high prices.
Nguyen Khac Hiep, the owner of a pig slaughtering workshop in Ha Dong district, complained that the business has never been as tough as of recent days. It is very difficult to buy pigs now, because farms do not have many pigs to sell. While the input prices have increased, the sales have been going very slowly with the sale volume having dropped by 50 percent.
As the blue-ear pig epidemic is threatened to break out again, worries have been raised that consumers would turn their back to pork like they did in 2010. In some localities, farmers rushed to sell pigs out after hearing about the epidemic.
If the epidemic cannot be extinguished soon, farmers would continue leaving farms idle, and the pork prices would continue rising.
Information TBKTVN
PHILIPPINES – A Malaysian firm wants to import pork products from the Philippines after discussions for a similar arrangement with Singapore fell through, according to the Department of Agriculture (DA).
In a media briefing, Agriculture Secretary Proceso Alcala said they are in talks with a Malaysian group, citing the growing demand for meat products from tourists visiting the Muslim country.
“We have just started negotiations last week, and they want us to export at least 1,000 heads per week,” Mr Alcala said.
According to The Manila Times.net, he said they expect to complete the deal within the next two months, adding that they are finalizing the necessary requirements, including the port of origin, for the export of the commodity.
“There is a good chance that it will be coming from Luzon, since it will not be economical if we would put the port in Mindanao,” he said.
Mr Alcala said Malaysia is in need of more pork products because of the increase in the number of foreign tourists in the country.
He said negotiations with Singapore halted, adding that the government would rather pursue a more willing customer like Malaysia.
Besides Malaysia, the government is looking at South Korea, which is suffering from a foot-and-mouth disease (FMD) outbreak, and where pork production is expected to decline by 760,000 metric tons this year. The Philippines expects a favorable decision from the World Organization for Animal Health or the Office International des Epizooties for the country to be declared free from the deadly FMD.
No case of FMD has been reported in the country since the last recorded outbreak on 28 December 2005.
Mr Alcala said this declaration, which is expected this month, will boost the Philippines’ chances of gaining a foothold in the global meat market, particularly pork and poultry meat products.
Besides pork, the government is also in talks with Japanese firms for the supply of Peking duck, Mr Alcala said, citing their preference for the lesser fat content of Philippine ducks.
He said the DA is now pushing for all Chinese restaurants in the country to patronize locally produced Peking ducks, adding that the supply could meet both local and foreign demand.
Information ThePigSite News Desk
Coolport @Changi Asia’s newest on-airport perishable handling centre, officially opened in Singapore last Friday. It represents SATS’ initiative in providing innovative solutions as a leading gateway services provider and serves to strengthen Changi Airport and Singapore’s standing as an important air cargo and logistics hub. Built at a cost of SGD 16.5 million (USD 12.5 million), Coolport handles import, export and transit of perishable cargo and has an annual handling capacity of 250,000 tonnes, with scope for expansion from the current 8,000 square metres to 14,000 square metres.
Information from Agribiz
Thailand’s broiler meat production is forecast to grow modestly by four per cent in 2010 in anticipation of higher demand both domestically and internationally, and assuming that there will be no serious disease issues, especially avian influenza, in the country. This across-the-broad increase is mainly attributed to an anticipation of a global economic recovery.
The EU and Japan will remain major markets for Thai chicken meat exports (all of it cooked product) in 2009 and 2010, accounting for 85 to 90 per cent of total exports. Other importing countries include Vietnam, Singapore, South Korea and Hong Kong.
The EU recently notified WTO of its plan to raise import tariffs on eight items of poultry meat products. These include uncooked chicken meat products containing more than 57 per cent chicken meat, cooked chicken meat products containing 25 to 57 per cent chicken meat, and cooked chicken meat products containing less than 25 per cent chicken meat. These chicken meat products are currently not under the EU tariff-rate-quota. However, the plan has not been finalised by the EU thus far. Additionally, Thai exporters have requested the Department of Trade Negotiations (DTN) of the Thai Government to discuss with the EU a possible increase in current quota ceiling and import tariffs during the months of September or October 2009.
Thailand’s broiler meat production is forecast to grow modestly by four per cent in 2010 in anticipation of higher demand both domestically and internationally and assuming that there will be no serious disease issues, especially avian influenza, in the country.
Broiler meat production for 2009 is likely to register a two per cent growth over the 2008 level to 1.2 million metric tons. A low growth in broiler production in 2009 is a reflection of the global economic downturn that is affecting both export and domestic demand. An average amount of chick production in 2009 is estimated at 18 million birds per week, accounting for three-quarters of the country’s production capacity. This idle capacity has minimal effects on the industry’s production costs.
Thai broiler industry’s farm facilities, breeding farms and broiler farms in particular, expanded substantially in early 2002-2003, shortly before Thailand was hit by High Pathogenic Avian Influenza (HPAI), H5N1 type, in January 2004. The disease incidence caused both export demand and domestic consumption to plunge in 2004. After demand recovered in 2005, independent chick producers and broiler integrators have monitored the market closely and cautiously adjusted their chick production to reflect the actual demand. As a result, broiler production has fluctuated in a lesser degree in recent years than in the past.
In addition to supply management, the Thai broiler industry has successfully improved farming systems to encounter animal health and food safety challenges. All integrated producers are currently strictly implementing biosecurity measures across the board, from the farm level to the processing level.
Nearly all broiler houses of integrated producers are installed with an evaporative cooling system, which leads to higher productivity and reduced disease exposure and mortality rates.
In addition, Thai chick producers have continued to improve genetics in broiler breeding stocks so that average meat yields per bird have increased in recent years. Integrated producers have also invested money to introduce or improve their broiler meat processing facilities from slaughtering to cooking processes. Accordingly, Thailand is currently considered one of the premium suppliers for cooked chicken meat products to Japanese and EU customers.
Trade sources forecast that production costs of live broiler in 2010 should increase to some degree in anticipation of stronger prices for bulk feed ingredients.
Trade sources forecast that production costs of live broiler in 2010 should increase to some degree in anticipation of stronger prices for bulk feed ingredients. In 2009, a reduction in domestic and international prices for feed ingredients and chicks have benefited the Thai broiler industry.
For example, prices for corn and soybean meal, ingredients that account for 85 to 90 per cent of the broiler feed ration, have dropped six per cent (from average 17.78 baht (THB) per kg to THB16.30) for corn and 23 per cent (from THB9.32 baht/kg to THB7.17) for soybeans in the first seven months of 2009 (Jan-Jul) compared to the same period in 2008. Domestic wholesale prices for chipped tapioca, a carbohydrate-source substitute material, also declined sharply by 29 per cent from THB5.84 per kg to THB4.13. In addition, chick prices in the first seven months (January to July) dropped sharply by 27 per cent to THB9.84 baht per bird (28 cents per bird).
As a result, average live broiler production costs in the first seven months of 2009 (January to July) are estimated to drop by 17 per cent from THB37 baht per kg (48 US cents per pound) to THB31 baht per kg (40 cents per pound). As of August of 2009, current average production costs are THB32 to 33 baht per kg (42 to 43 cents per pound), which is broken down as follows: day-old chicks (THB7), feed (THB21 to 22), vaccination and drugs (THB1), and labour and other costs (THB3).
High pathogenic avian influenza (HPAI), H5N1 type, hit Thailand in January 2004 and the outbreak has occurred from time to time each year.
According to Thai officials and trade sources, the outbreak of HPAI in Thailand has been much lesser as of late. Only two premises raising native chickens in Sukhothai and Uthai Thani provinces reported positive for HPAI in October and November 2008, respectively, and only 14 chickens were destroyed on these two sites.
In addition to the ‘stamping out’ practice, the Department of Livestock Development (DLD) conducted other control measures including quarantine, movement control, screening, zoning, disinfection of infected premises or establishment, following OIE guidelines. Thailand has had no HPAI incidents since the last affected flock was depopulated on 12 November 2008.
Domestic broiler meat consumption in 2010 is forecast to increase by five per cent due to the recovery of the Thai economy and poultry meat prices remains the cheapest meat. In addition, an increase in domestic consumption should be partly attributed to an effort to promote new ready-to-eat chicken menu in domestic market by quick service restaurants (QSR) and food processors, including the largest poultry integrators such as Charoen Pokphand Group. In 2009, growth in broiler meat consumption is estimated to register a one per cent increase due to the economic downturn.
Average domestic prices for live broilers in the first seven months of 2009 (January to July) dropped 11 per cent over the same period of 2008 to THB34.04 per kg (approx. 44 cents per pound) due mainly to decreased production costs. Meanwhile, average retail prices for chicken boneless breast meat in Bangkok in 2009 (January to July) decreased by 23 per cent to THB68.97 per kg ($0.90 per pound) from the 2008 level.
Thailand’s exports of cooked chicken meat are forecast to grow by seven to eight per cent in 2010 due to an anticipated recovery in the economy of importing countries, especially the EU and Japan.
Chicken meat exports (both cooked and uncooked) in the first half of 2009 reportedly dropped by two per cent from 178,721 metric tons in the same period of 2008 to 174,764 metric tons. However, based on the export performance of the first half of 2009 and the anticipation of improved exports in the second half of the year, total exports of chicken meat should register a growth of two per cent in 2009. This slow growth is a result of the global economic downturn.
In 2009 and 2010, the EU and Japan will remain major markets for Thai chicken meat exports (all cooked product) accounting for 85 to 90 per cent. Other importing countries include Vietnam, Singapore, South Korea, and Hong Kong.
There are no export price quotations on basic uncooked items such as boneless leg (BL) and skinless boneless breast (SBB) from Thailand. Trade sources report that export prices in 2009 continue to be profitable. Under the EU quota, several importers in the EU have been sourcing more products from Thailand and Brazil. In addition, concerns about the quality of Chinese food products have benefited Thai poultry exports, particularly to Japan.
Trade sources reported that the global economic downturn is affecting export prices in the EU market at a higher degree than prices in the Japanese market. Export prices for steamed dice-shape-cut skinless boneless breast (SBB), a major item exported to the EU, declined sharply from $4,000 to 4,500 per ton CIF in 2008 to the current price of $3,000 to$3,500. On the other hand, export prices for fried cut boneless leg, one of the basic cooked products to the Japanese market, dropped in a lesser degree from $ 4,200 to $4,300 per metric ton to $4,000 to 4,200. However, export prices are expected to improve by five to 10 per cent in the last quarter of 2009.
The bulk of the cooked chicken products consist of made to order meat products that are processed or prepared by heat (such as grilling, steaming, boiling, etc.) and are usually puffed or seasoned (with salt, Japanese sauce, etc.).
Under the agreement, Thailand receives 92,610 tons, out of a total quota of 264,245 tons, for salted poultry meat (EU HS code 02109939). The in-quota tariff rate is 15.4 per cent while the out-of-quota rate will be €1,300 per ton. Quota for cooked chicken meat (EU HS code 16023219) for Thailand is 160,033 tons, out of a total quota of 250,953 tons, and in-quota imports from Thailand will be subject to an eight per cent tariff. The out-of-quota rate for cooked chicken meat is €1,024 per ton.
Thailand’s cooked chicken meat (EU HS code 16023219) already reached the quota ceiling of 160,033 tons in 2008. Thailand also exported about 16,000 metric tons of cooked chicken meat products containing no more than 57 per cent chicken meat, which is not under the EU tariff-rate-quota administration, in 2008.
The EU recently notified WTO of its plan to raise import tariff on eight items of poultry meat products, including uncooked chicken meat products containing more than 57 per cent chicken meat, cooked chicken meat products containing 25 to 57 per cent chicken meat, and cooked chicken meat products containing less than 25 per cent chicken meat. These chicken meat products are currently not under the EU tariff-rate-quota. However, the plan has not been finalised by the EU thus far. In response to Thai exporters’ request, the Department of Trade Negotiations (DTN) of the Thai Government plans to hold discussions with the EU on a possible increase in current quota ceiling and import tariff issues in September or October 2009.
Thailand is likely to lose its momentum in an effort to pressure major importing countries, i.e. Japan and the EU, to accept the compartmentalisation practice in order to allow Thailand to export raw/uncooked chicken meat to these markets again, regardless of the avian influenza status of the country. The OIE has not issued any official certification on compartmentalisation for the Thai companies that were inspected by the OIE technical expert in mid-2008.
Thailand’s policy for the poultry industry has not changed from the last report. Thailand does not have price supports or export subsidy programmes for poultry. Because of the HPAI outbreak, the Royal Thai Government (RTG) launched several measures to support the poultry industry, from small-scale farmers to integrated poultry processors. These measures include the HPAI stamping-out campaign on poultry farms/areas, a compensation scheme for disease-affected farmers, fee exemptions for chicken slaughterhouses, and outreach to help unemployed workers/operators.
Thailand is a protected poultry market through the RTG’s use of non-transparent control of import permits (potential importers are unable to get them issued), high WTO bound rates of import tariffs (currently 30 per cent for chilled or frozen uncooked meat and 40 per cent for cooked chicken meat), and a discriminatory import permit fee on uncooked products (approximately $286/ton).
Regarding imported poultry products, Thailand seemingly exceeds OIE guidelines when exporting countries confirm a finding of low pathogenic avian influenza (LPAI) in their country. In the case of live poultry and poultry products, the RTG banned US live poultry and poultry products (both uncooked and cooked) after a finding of LPAI cases in some US states.
DLD has maintained a ban on live poultry and poultry products from Virginia since 24 July 2007.
Thailand is a potential market for US chicken parts (especially leg-quarters), mechanically deboned meat (MDM), and value-added chicken meat. Thai local consumers, like those in other Asian countries, prefer dark meat to white meat. Potential buyers for chicken parts and MDM would be food processors (sausage processors in the case of MDM) and supermarkets. Value-added chicken meat can also be introduced to modern retail markets and HRI industry. Thailand could import bone-in-leg meat for processing in Thailand and re-export it to such markets as Japan and non-EU countries. However, the US export opportunities of these chicken parts are currently hindered by Thailand’s non-transparent controls on issuing import permits.
The report : http://gain.fas.usda.gov/Recent%20GAIN%20Publications/POULTRY%20AND%20PRODUCTS%20ANNUAL_Bangkok_Thailand_9-4-2009.pdf
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