ASEAN poultry producers remain optimistic on their 2019 and long-term outlook. The region is expected to grow 5% in 2019, outstripping global growth forecast of 3.5%. Potential rise in consumer income, growing demand for meat, favorable feed supplies, all point towards a good year ahead for the poultry industry. The relatively low per capita poultry meat consumption in most ASEAN countries is another indication that there is a high potential for growth within the region1. Analysts suggest that the widespread occurrence of the African swine fever severely curbing pork production in China may have significant impact on poultry output and prices in the ASEAN countries.
Indonesia
Chicken remains a major source of protein for Indonesia due to its affordability. The long-term trend for poultry demand is structurally positive due to its relatively young population, a growing middle class, and a relatively low per capita poultry consumption (10.1 kg per capita for 2017) compared to developed nations2.
However, growth for the poultry sector is forecast to be flat for 2019 due to tight supplies. Supplies of day-old-chicks is expected to be tight for the first half of 2019, according to Rabobank’s Poultry Quarterly reports3. The pressure may ease in the second half of the year.
Thailand
It was estimated that poultry meat consumption in Thailand grew 3 to4% in 2018, but the growth is expected to slow to 2% in 2019 due to expected higher prices.
On the supply side, broiler meat production is forecast to rise to 3 million metric tons in 2019 on the strength of demand from both domestic and overseas markets. Thai poultry meat exports grew by 8% in 2018 and is expected to grow another 6% this year to 870,000 metric tons3.
Vietnam
A latecomer in this industry, Vietnam saw huge foreign investment in her livestock industry in the last few years. Many of these foreign investments set up joint ventures with local firms in Vietnam, and many of them are exporting poultry products4. Some of the better-known commercial poultry producers in the country are CP Vietnam, Ba Huan, Vinh Thanh Dat, Dabaco, 3F Viet Thanh Duc, and DKT.
- Asia’s Poultry producers expect strong results in 2019 by Mark Clements, Poultry International April 2019 edition.
- OECD-FAO Agricultural Outlook 2017-2026
- Poultry Quarterly Q1 2019 by RaboResearch (Food &Agribusiness)
- Big investors jump into growing poultry market (2018) by Nieuwsbericht