|
 Barriers
and conditions
Trade barriers
Japan
: Japan's tariff reduction scheme: Considering
that a large percentage of the Thai chicken meat exports to
Japan consists of boneless meat, the new tariff reduction
scheme of Japan would hardly benefit the Thai poultry exporters.
|
Product
|
Former tariff
|
New tariff
|
% Change
|
| Chicken legs with bones |
10.0% |
8.5% |
15.0% |
| Boneless chicken meat
|
12.0% |
11.9%
|
0.83% |
EU : On 20 January 1998,
tariff for chicken meat has been increased 4 times from 7
ECU/ 100kg to 29 ECU/100kg
South Africa : 23 July 1997
increased import tax.
| Code |
Product
|
Old tariff
rate (%) |
New tariff
rate (%) |
| 0207.1400 |
Frozen
chicken cuts |
27 |
84 |
| 0217-27 |
Frozen
turkey cuts |
0 |
27 |
| 0207.410.104 |
Poultry
and fowl cuts |
0 |
27 |
Middle East : Uncompetitive
pricing - US and Brazil offer US$ 1,100/ton for whole chicken
which is comparatively lower than the price that Thailand
could offer (US$ 1,600/ton). Price for Thailand's boneless
chicken though is the same as that of Brazil and US.
Brunei : Thailand still has
to meet yet the special products' compliance requirements
of Brunei to be able to export to that country.
Hong Kong : Despite the reduction
in chicken consumption in Hong Kong by 50% as a result of
the bird flu scare, the demand for chicken legs and wings
is still high. However, USA remains its major supplier.
Australia : Extremely long
processing time requirement to ensure destruction of infectious
bursal disease virus (IBDV) is required for cooked chicken
import. The requirement can adversely affect product quality
and cost of production as processing time requirement is lengthened
by almost 5 times.
USA : Food Safety Inspection
Services (FSIS) and Animal and Plant Health Inspection Service
approvals are required before exporting. Australia requires
IBDV check on Thai processed chicken.
Opening of the Australian market for boiled chicken was granted
to Thailand, Denmark and US in November, 1997 provided that
suppliers are able to guarantee that products are processed
for 143 min, 70 ?C instead of the usual 30 min, 70 ?C processing
conditions. The requirement was made to ensure that infectious
bursal disease virus (IBDV) if ever present is destroyed.
The
newly imposed processing requirement poses problems to processors
since such a condition could produce adverse effects on the
products' eating quality plus the fact cost of production
could also escalate with the lengthening of processing time
by almost five times. Meanwhile, the Department of Foreign
Trade in cooperation with the Department of Livestock is working
on a strategy to deal with the problem.
Production barriers
Raw materials
High cost of feed ingredients: Shortage in local feed ingredients
is turning the industry to imported feeds and ingredients
which thus increased cost of production. In addition to feed
costs, duties and surcharge of commodities exceeding quota
are also industry to imported feed and feed ingredients which
thus increased costs of production. high. For example…
- Corn: off quota, tax is 7.8% and surcharge is 180 baht/ton
- Soybean meal, tax is 5%, no limit on import but must buy
domestic soybean at a price of not less than 8.50 baht/kg.
- Minced fish, tax is 15%, no quota and surcharge
- Premix and other ingredients, tax is 10%.
Technology
High investment on machines and plants - Processing chicken
requires technology and one production line costs about 120
millions baht, a considerably high investment plus high rate
of interest on loan pose and potential barriers in the processed
chicken production development.
Research on new product development also requires high investment
cost.
Inadequate number of qualified experts in poultry husbandry
- Continuous poultry production research and development need
qualified manpower and Thailand is short of experts in the
area.
| Critical
Factors |
 |
|
