Page 25 - FoodFocusThailand No.204 March 2023

SPECIAL FOCUS

Positive Factors for the Broiler Industry are likely to persist, and the gradual increase in interest rates.
In general, Thailand’s broiler industry still enjoys a plethora In a more specific view, risks within the broiler industry must
of supporting factors that help elevate its total value further also be monitored, such as non-tariff barriers (NTBs), avian
from that of 2022, although producers’ profitability may epidemic, and competition from novel alternative products,
expectedly suffer a drop due to higher manufacturing costs. because they can hamper the rising trend of chicken
The contributing factors that may influence the industry’s consumption.
growth are as follows: the outbreak of African Swine Fever
(ASF) seems to drag on in many countries, especially in Asia; Adaptation of the Businesses in the Broiler
the chicken export to the United Kingdom is projected to Industry
increase as a result of a bilateral free trade agreement According to the EIC, broiler industry operators need to
(FTA); the new British tax structure may encourage fair adapt their business plans and development strategies to
trade and international businesses; the commercial relationship prepare for upcoming challenges, flexibly satisfy consumer
between Thailand and Saudi Arabia has been revived; demand, and create new business opportunities in the
more Thai manufacturing and export facilities of chicken meat future. These initiatives include, for example, the development
are gradually being certified for the fulfillment of industrial and improvement of manufacturing standards throughout
standards; and more partner countries are increasingly the whole supply chain to sharpen the industry’s competitiveness
recognizing the standards of Thai chicken processing and reduce trade obstacles. In addition, operators should
factories. These positive elements affirm that the Thai broiler search for new export markets to reduce risks originating from
industry is capable of fulfilling international standards excessive dependence on one specific market and steer
throughout its whole production chain, which will enable the away from extremely harsh competition that permeates
country to export even more chicken to more international current export markets. Priority should be given to the research
scenarios. and development of novel chicken products that yield higher
added value as a preparation to better handle increasingly
Risks in the Broiler Industry intense competition in the future.
Despite optimistic prospects, operators need to cautiously
look out for possible risks in the macroeconomic sphere,
such as the global economy that may come to a slowdown More Information Service Info C001
sooner than expected, the existing high inflation rates that

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