Market Analysis - Livestock 2017
3rd International Conference on Livestock & Nutrition
Theme: “Leading Innovation in Livestock for Sustainable Farming”
About the Conference
Livestock Nutrition Conference welcomes attendees, presenters and exhibitors from all over the world to attend and register for the “3rd International Conference on Livestock & Nutrition (Livestock 2017)” focusing on the theme “Leading Innovation in Livestock for Sustainable Farming” which is going to be held during November 02-04, 2017 Bangkok, Thailand.
Conference will explore the advances in Livestock Nutrition and Health, Animal Husbandry and Modern Agriculture, Livestock Diseases, Animal Feed manufacturing Industries etc.. This conference could be an exceptional event that brings along a novel and International mixture of giant and medium livestock researchers, leading universities and livestock science and analysis establishments providing the conference an ideal platform to share expertise, foster collaborations across trade and world, and assess rising technologies across the world.
Significance and Scope
Among largely agrarian economies, which are home to the majority of the world’s poor, livestock are an integral part of smallholder crop-livestock farming systems. There is thus much greater scope for investment in livestock sector development for poverty reduction than generally realized, particularly in development that enables smallholders to take advantage of the growing demand for livestock products by more affluent members of society. ‘Nearly three-quarters of the extremely poor—that is around 1 billion people—live in rural areas and, despite growing urbanization, more than half of the “dollar-poor” will reside in rural areas until approximately 2035. Most rural households depend on agriculture as part of their livelihoods and around 90 per-cent of the world’s extremely poor are small-scale-farmers.
Globally, the numbers of poor livestock keepers have been increasing at a rate of about 1.4 per-cent per year. In terms of the absolute numbers of poor livestock keepers (less than $2/day), South Asia and sub-Saharan Africa dominate: more than 45 and 25 per-cent of the estimated 752 million poor livestock keepers live in South Asia and sub-Saharan Africa respectively. A combined strategy for livestock and staple crop productivity growth, exploiting the close linkage between these two sectors, would have the strongest income-multiplier and poverty-reduction benefits. India's animal feed industry is expected to double in size, to $30 billion in 5 years, with poultry, cattle and aqua feed sectors as major growth drivers, reports The Financial Express.
Why Bangkok, Thailand
The livestock sector in Thailand is expected to recover from cyclical downturn in 2015 on the back of growing demand from both domestic and export markets, and manageable feed costs. The competition in the poultry industry has intensified as Saha Farm returned to the market. In addition, major broiler producers expanded capacity to serve growing demand. In 2015, broiler meat production was 1.80 million tons, 8.35% higher than the previous year. Production is expected to increase by 4.80% in 2016. However, the restriction on poultry parent stock imports may limit broiler production in the second half of 2016. As chicken meat is a basic protein source and cheaper than other animal proteins, domestic consumption in 2015 rose to 1.20 million tons in 2015, up by 7.56%. Consumption in 2016 is projected to grow by 3.33%. Broiler meat exports grew from 545,615 tons in 2014 to 622,071 tons in 2015. Exports in the first four months of 2016 rose by 11.42%. Japan and Europe remain the two major export markets. In 2016, broiler meat exports are expected to continue to increase. However, Thailand may lose some market share to Brazil because the Brazilian currency has depreciated. The price of broilers in Thailand plunged by 15.61% in 2015 owing to an oversupply and low demand from the European Union (EU). Broiler prices in 2016 are forecast to rise due to production limits.
Ø Livestock and Health
Ø Livestock Disease Management and Traceability
Ø Recent Technology in Optimising Livestock Production
Ø Livestock Nutrition
Ø Livestock Feed Ingredients
Ø Feed Prices and Agribusiness
Ø Feed Supplies
Ø Feed Technology and Equipment’s
Ø Organic Livestock
Ø Livestock Marketing and Animal Welfare (Act, Law & Policy)
Why to Attend
Livestock Nutrition-2017 could be an exceptional event that brings along a novel and International mixture of giant and medium livestock researchers, leading universities and livestock science and analysis establishments providing the conference an ideal platform to share expertise, foster collaborations across trade and the world, and assess rising technologies across the world.
Livestock and poultry account for over half of U.S. agricultural cash receipts, often exceeding $100 billion per year.
This topic examines issues not easily assigned to a particular livestock commodity, such as price reporting or animal health and welfare.
Information about specific livestock commodities are in separate topic areas
Thailand purchased a record $1.6 billion in food and agricultural products from the United States during the 2014 fiscal year, making it the 15th-largest U.S. export market. Top products included soybeans and soybean meal, cotton, and prepared foods. Overall, U.S. agricultural exports to Thailand have grown by 77 percent over the past five years. The United States is Thailand's top supplier, with a 16-percent market share.
Thailand Market Report:
Thailand had a gross domestic product (GDP) of US$390.2 billion in 2013, which is expected to grow by 4.5% in 2014. The World Bank upgraded Thailand to an upper-middle income economy in 2011 due to significant social and economic growth. Thailand is the nineteenth most populous country in the world with 68.2 million people. The population is expected to reach 69.3 million by 2017. Annual consumer expenditure was US$3,243 per capita in 2013, with food and non-alcoholic beverages representing US$908 or 28% of that total. Thailand’s processed food imports were valued at C$9.3 billion in 2013. Canada’s share was 0.5%. The United States, Argentina, China, Brazil, and Australia were the largest suppliers of processed food to Thailand in 2013, providing 42.6% of the market. Thailand’s processed food imports had an annual growth rate of 4.5% between 2011 and 2013.
Growing populations, rising disposable incomes and progressive urbanization in Asia and the Pacific region have spurred rapid growth in the consumption of animal source foods. The region has generated more than half the gains in global livestock production since the early 1990s and this growth is expected to continue in the foreseeable future. However, the manner of supply growth has also imposed considerable social, health and ecological costs. Signs of resource stress are now becoming visible and are raising new challenges for food and nutrition security of the poor. There are also growing concerns of real and potential marginalization of small producers in the process, resulting in missed opportunities for supporting rural livelihoods.
Live cattle marketing and trade systems for Thailand are presented in Figure 4. Traditional mixed cattle-crop producers often produce cattle for low beef value markets. Cattle marketing chains are characterized by a large number of agents which ensures a competitive price structure at the lower end of the market. Traditional producers often sell their cattle to collectors/ middlemen at farm gate through spot transactions and immediate payment. Some also take their cattle directly to the local cattle market. At the market, sellers are usually individual farmers, professional traders or opportunistic speculators. Buyers are mainly traders serving slaughter for butchers or slaughter houses (50%). Some buyers purchase for breeding stock or fattening. Bargaining between a seller and a buyer starts when the seller provides information about the price and age of animals. Negotiations for whole truck load occur with well-known buyers/traders. Sellers pay a market fee and obtain the animal health certificate from local livestock officer to pass to the buyer with the cattle. If the buyer wants to move the animals across provinces, they need to get a movement permit and pays a certain fee. Mid and high-value cattle producers differentiate their products to be traded. Specialized fattening producers often sell their products through spot marketing or group marketing, while contracting is often done between modern slaughterhouses and large commercial feedlots. These producers tend to be located close to destination markets, and often sell directly to butchers or slaughter houses.
Global Market Research:
Thai chicken meat production in 2015 is estimated in the report to grow modestly by 5 percent from the 2014 level mainly because Saha Farm Group, which was closed for several months from May 2013 to March 2014, has built up its chicken production in 2015 reaching 2-3 million birds per week at the present time. Thailand has rapidly improved its body weights and feed conversion ratios in broilers in recent years, and has also successfully prevented a return of avian influenza since the damaging outbreak in 2004 by implementing strict biosecurity measures.. feed costs have risen recently in Thailand, but feed mills are altering ingredient blends to try and keep costs down. Prices for day-old chicks declined, resulting in an overall lowering of the cost of broiler production. However, falls in market prices received for broilers meant that integrated processors are only breaking even, whilst non-integrated processors are facing losses due to higher production costs.
Despite lower prices, domestic consumption and sales of chicken meat will only be expected to expand by 1-2 percent in 2015 and 2016 due to Thailand’s poor economic outlook and increased competitiveness of pork in the first half of 2015, the report said. Although recent trends have shown Thais moving toward a big-city lifestyle and away from traditional practices, particularly in Bangkok, most Thai people still buy fresh chicken meat from traditional markets. This accounts for about 60-70 percent of total chicken meat sales domestically. Trade sources expect chicken meat consumption in the ready-to-eat and quick service restaurant sectors to continue to grow by 5-6 percent annually for the next 5 years. Chicken meat exports for 2015 are estimated to grow by 6 percent to 580,000 metric tons (MT) when compared to 2014. More markets are opening to Thai products due to the continued absence of avian influenza. About 70 percent of total exports in 2015 is expected to consist of cooked chicken meat products. Thai chicken meat exports are forecast to decline to 530,000 MT in 2016 in anticipation of reduced broiler production.
Thailand increased from 4.6 million head in 2000 to 6.7 million head in 2007. This was due to the Thai government’s policy such as Beef Cattle Farm promotion in the north-eastern region and the One-Million Beef Cattle Households to support farmers to raise beef cattle in an effort to reduce the amount of imported beef (Charoensook et al., 2013). In addition, farmers have replaced traditional buffaloes by cattle (FAO, 2005). This trend reflects the reduced use of draught power, the greater suitability of cattle on newly cleared areas, and the greater productivity of cattle in beef production. However, the number of cattle dropped from 6.7 million head in 2007 to 5.1 million head in 2013 (Figure 1). Some obvious reasons are the increased mechanization of agriculture during this period, lack of grazing areas, lack of labor, and strong demand for live cattle from China and Vietnam (Skunmun et al., 2001, Cocks et al., 2009). Similarly, as shown in Figure 1, the number of cattle slaughtered annually increased from around 335,923 head in 2000 to 620,278 head in 2008 and then reduced to 525,575 head in 2013. Beef production increased slowly from about 130 thousand tons in 2000 to about 160 thousand tons in 2013.
Thailand’s swine industry is relatively mature. According to the country’s Department of Livestock Development, 960,000 swines produced 15 million slaughter hogs in 2009. Chilled- and frozen meat exports tallied about 1,350 tons, worth U.S. $49 million. Frozen meat primarily goes to Hong Kong; with Japan a favored destination for cooked product. Thailand’s per capita pork consumption is about 35 pounds per person. Thailand has two major integrators, which control about 30 percent of the country’s swine industry. The bigger of the two is the Thai agri-food conglomerate CPF (Charoen Pokphand Foods plc). CPF started in 1921 and operates in 14 countries, including Russia. It’s one of the world’s larger animal-feed manufacturers, with 2009 profits at U.S. $297 million. CPF has several retail outlets in Thailand and long-term plans are to increase investments in those chains and it's food business while reducing investments in the less-lucrative farm sector.
The other major Thai integrator is the Bangkok-based Betagro group. Part of its business involves a joint venture with Japan’s Ajinomoto group to produce frozen pork products for the Japanese market. Like CPF, Betagro is focusing on the more profitable retail sector. Its goal is to open 31 new outlets this year, bringing the total to 65. Sales from Betagro’s chain are forecast to be U.S. $49 million this year. The pig production business contributed around 5 percent of this, with feed accounting for 50 percent.