Ban forces Thai poultry producers to go local

International bans on Thai poultry following the bird flu outbreak is forcing producers to increase their penetration of local markets.Competition is expected to be extremely tough in the sector during the course of the next year and many smaller, less competitive players are expected to go out of business by the year end.

According to a report by the Bangkok Posts leading companies such as Saha Farms, Charoen Pokphand Foods and Betagro Group are all planning on expanding their presence in local markets during the course of this year.

Betagro Group says it is planning on a number of processed poultry-based snack launches during this year aimed at younger consumers.

Thai rice exports hit record

The volume of Thai rice exports hit 10.13 million tonnes in 2004, while the value reached a record value of THB109.57 billion (€2.13bn), according the Thailand Ministry of Commerce.

In volume terms the figure was up by 25 per cent on the previous year when it reached 7.59 million tonnes. However, the Ministry did also point out that production figures were down for the month of December, reflecting crop shortages in the country.

The Ministry added that average prices for rice had increased by 11 per cent, reflecting a growing shortage in worldwide stocks bought on by rising demand from the China market. Exports of Thai rice were likely to continue to increase as a direct result of rice production declining in China.

Seaweed cost hike in the Philippines

Shortages of seaweed and rising production costs are likely to hit the seaweed processing industry hard, according to the Seaweed Industry Association of the Philippines.

In particular the use of carageenan seaweed, a popular food ingredient for the global food industry, is expected to be hard hit, with significant increases inevitable to ensure business sustainability. The association said that the rises have to be implemented, even at the risk of losing customers.

Price rises of around 10 per cent are likely to be implemented across the board in the course of the next few weeks, with many producers already implementing the hikes. The rises come despite the fact that many other seaweed export nations, such as China, have managed to maintain their current pricing structures.