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Thai chicken industry cuts production as global demand drops


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5 hours ago, ExpatOilWorker said:

Thailand's own CP group is relocating a lot of their food production to Vietnam. 

 

https://www.nationthailand.com/Corporate/30359954

For reference - CP is also established in Cambodia (quote):-

 

CP Cambodia, a subsidiary of Thai conglomerate Charoen Pokphand Company Limited, has confirmed plans to double its swine production by 2019 to meet Cambodia’s demand for pork products. ...

 

Interesting to see the chicken and pork products industry is, in my opinion, monopolized by the CP Group - price controls???????

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12 minutes ago, Don Mega said:

When they cut production, do they just dispose of the chickens in an incinerator or something ?

No, they live a bit longer....😷

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21 minutes ago, transam said:

No, they live a bit longer....😷

Ewww, old tough chewy chicken... but they love the extra longevity in the cages !!

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52 minutes ago, Don Mega said:

When they cut production, do they just dispose of the chickens in an incinerator or something ?

I guess they just cancel some breeders contracts

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6 hours ago, Chelseafan said:

 

Cooked chicken CAN be exported to the EU from Thailand but not currently from Vietnam.

Believe it or not, the exported chicken is generally of very good quality and is hormone-free for the EU market

 

EU has the strictest food regulations in the world. Meat has been free from hormones there for a long time already. And yes they check so surely no supplier would take that chance.

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9 hours ago, Don Mega said:

When they cut production, do they just dispose of the chickens in an incinerator or something ?

 

No, it is generally phased down over a period of time.

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8 hours ago, Susco said:

I guess they just cancel some breeders contracts

 

Absolutely. They are called broiler farms.

Sorry, I'm in my element on this topic 🙂

 

 

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9 hours ago, Burma Bill said:

For reference - CP is also established in Cambodia (quote):-

 

CP Cambodia, a subsidiary of Thai conglomerate Charoen Pokphand Company Limited, has confirmed plans to double its swine production by 2019 to meet Cambodia’s demand for pork products. ...

 

Interesting to see the chicken and pork products industry is, in my opinion, monopolized by the CP Group - price controls???????

 

CP are the biggest player for the local market but there are alot of other producers for the export market such as GFPT, Cargills, Betagro, Crown etc. Whilst I buy from CP, I diversify my sourcing across another 5 vendors.

 

 

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Considering that the decline in the EU market is from the catering industry its not a bad drop in chicken exports overall. Seems like one area thats not been hit too bad by Covid repercussions. 

 

I would have thought domestic/supermarket sales would go up as people in the EU tighten their belts and taking into account chicken is cheap protein.

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6 hours ago, MRToMRT said:

Considering that the decline in the EU market is from the catering industry its not a bad drop in chicken exports overall. Seems like one area thats not been hit too bad by Covid repercussions. 

 

I would have thought domestic/supermarket sales would go up as people in the EU tighten their belts and taking into account chicken is cheap protein.

 

Food service still in a lot of trouble for sure but they are not the biggest importer of chicken from Thailand. A lot of their material comes from Brazil or Eastern Europe where the source material is marginally cheaper

 

What we're seeing (as a retailer) is that people are still avoiding going to resturants and instead treating themselves at home. Chicken sales continue to be in significant double-digit growth versus single digit pre-covid.

 

Perhaps Coq au Vin is making a comeback 🤔

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