October 25, 2024
Thailand chicken exports set to rise amid Japan's bird flu outbreak
Chetthaphon Dutsadeenoad, director of Food Moment Public Company Limited, said that Japan's bird flu outbreak presents an opportunity for Thailand to increase its chicken exports to Japan, filling the gap in supply, Kaohoon International reported.
Japan's Ministry of Environment had raised the severity of the bird flu outbreak to the highest level after a deadly strain was detected in two cities in Hokkaido prefecture on October 16, 2024.
Japan imports around 1 million tonnes of chicken annually, with Thailand contributing approximately 46% of those imports. In 2023, FM accounted for 33% of Thailand's chicken exports to Japan. In the first half of 2024, the company's share dropped slightly to 29%. However, in the fourth quarter of 2024, FM will begin delivering processed chicken to customers in Korea, who will then export the product to Japan and Europe. Chetthaphon believes this may indirectly boost Thai exports.
FM has set a target to increase its export ratio from the current 50% to 65% within the next three years. As of the fourth quarter of 2024, the company's chicken production capacity has improved by 19% without the need for new equipment. Its slaughter capacity has also risen to 130,000 chickens per day, up from 110,000. Additionally, the company has increased processed chicken production capacity to 27,000 tons, expecting a significant boost in sales.
In terms of overall performance for 2024, FM expects earnings growth of 25-30% compared to last year's total earnings of THB 5.791 million (US$171,000). In the first half of 2024, the company reported earnings of THB 3.646.29 million (US$107,000). FM has recently expanded its production capacity and entered new markets as part of its growth strategy.
- Kaohoon International