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Poultry Sector in South East Asia Iowa Economic Development Authority
March 2017
Orissa International Pte. Ltd. | Market Research © 2017
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Poultry Sector in South East Asia
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Table of Contents
1. Introduction ............................................................................................................................ 1
2. Malaysia .................................................................................................................................. 4 2.1 Country Profile ........................................................................................................................ 4 2.2 Poultry Market ........................................................................................................................ 5
2.2.1 Key Developments ........................................................................................................... 6 2.2.2 Key Poultry Processing Areas ........................................................................................... 7
2.3 Useful Information .................................................................................................................. 9 2.3.1 Associations ...................................................................................................................... 9 2.3.2 Trade shows ..................................................................................................................... 9
3. Indonesia .............................................................................................................................. 10 3.1 Country Profile ...................................................................................................................... 10 3.2 Poultry Market ...................................................................................................................... 11
3.2.1 Key Developments ......................................................................................................... 12 3.2.2 Key Poultry Processing Areas ......................................................................................... 13
3.3 Useful Information ................................................................................................................ 15 3.3.1 Associations .................................................................................................................... 15 3.3.2 Trade shows ................................................................................................................... 16
4. Thailand ................................................................................................................................ 17 4.1 Country Profile ...................................................................................................................... 17 4.2 Poultry Market ...................................................................................................................... 18
4.2.1 Key Developments ......................................................................................................... 19 4.2.2 Key Poultry Processing Areas ......................................................................................... 21
4.3 Useful Information ................................................................................................................ 24 4.3.1 Associations .................................................................................................................... 24 4.3.2 Trade shows ................................................................................................................... 24
5. Philippines............................................................................................................................ 25 5.1 Country Profile ...................................................................................................................... 25 5.2 Poultry Market ...................................................................................................................... 26
5.2.1 Key Developments ......................................................................................................... 27 5.2.2 Key Poultry Processing Areas ......................................................................................... 28
5.3 Useful Information ................................................................................................................ 30 5.3.1 Associations .................................................................................................................... 30 5.3.2 Trade shows ................................................................................................................... 30
6. Vietnam ................................................................................................................................ 31 6.1 Country Profile ...................................................................................................................... 31 6.2 Poultry Market ...................................................................................................................... 32
6.2.1 Key Developments ......................................................................................................... 33 6.2.2 Key Poultry Processing Areas ......................................................................................... 34
6.3 Useful Information ................................................................................................................ 35 6.3.1 Associations .................................................................................................................... 35
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6.3.2 Trade shows ................................................................................................................... 35
7. References ........................................................................................................................... 36 7.1 Malaysia ............................................................................................................................ 36 7.2 Indonesia ........................................................................................................................... 36 7.3 Thailand ............................................................................................................................. 36 7.4 Philippines ......................................................................................................................... 37 7.5 Vietnam ............................................................................................................................. 37
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Poultry Sector in South East Asia
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1. Introduction
This report provides information on the poultry sector for the five key markets of South East
Asia, namely Malaysia, Indonesia, Thailand, Vietnam and the Philippines.
These 5 key countries, together with Singapore, Brunei, Myanmar, Laos and Cambodia, have
joined forces to form the ASEAN Economic Community (AEC), which aims to create a common
market and production base. The AEC promotes the flow of goods, services, investments, skilled
labor, and capital across the region – with a view to creating single market, and offers
opportunities in the form of a huge market of US$ 2.5 trillion and over 625 million people. The
region is the third largest economy in Asia and the seventh largest in the world. Despite the
backdrop of weak external demand, South East Asia saw a steady growth of 4.7% in 2016, a
slight pick-up from 2015’s 4.5%.
Figure 1: ASEAN Economic Community
Asia will be the driver of increasing global poultry consumption in the future. Poultry
consumption around the world is predicted to grow by 27% to 28 million tons by 2023 - with 40%
of that growth in Asia. In Southeast Asia, the combination of growing per capita incomes,
population growth and urbanization translated into a growth of demand for animal products.
The surge in demand for animal protein resulted in a significant increase of meat – mainly
poultry and pork. Poultry is the largest livestock sector in Malaysia, Thailand, and Indonesia.
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The expansion of poultry production in South East Asia (SE Asia) is occurring within a framework
of large-scale commercial farms and intensive livestock operations. Contracting between
producers and private industry, particularly feed companies, is now an extremely important
element of the broiler industry.
However, poultry production cost in the region are high due to imported feeds and lack of
efficiency and technology in production. Experts have noted that future success of the poultry
industry in the South East Asia will depend on its ability to manage costs in addition to controlling
avian influenza, and boosting consumer confidence in the safety and benefits of poultry meat.
Figure 2 Iowa Poultry Export to SE Asia Source: census.gov
Poultry imports in South East Asia predominantly come from the US, EU, Australia and Brazil.
For most exporters, there is still a learning process to go through in terms of maximizing both
market access and price for products in the Asian market. Responding to local importer
specifications (packaging, trimming, presentation, etc.) is important in gaining repeat trade at
the best prices, especially with an increasing number of players competing in the markets.
Report Content & Structure
This report has been created by Orissa International Pte Ltd for Iowa Economic Development
Authority (IEDA). The report aims to discuss the current trends and issues that dominate the
poultry industry of Malaysia, Indonesia, Thailand, Vietnam, and the Philippines. For each market,
we offer a country profile and general overview of the poultry sector followed by key topics
686,385
1,083,634
674,732
879,408
1,458,049
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2012 2013 2014 2015 2016
Values in USD
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Poultry Sector in South East Asia
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affecting the country’s poultry production. It is then followed by a list of associations and
tradeshows for each market.
Research Methodology
Orissa International’s research in each country is managed by an in-country Trade and/or
Research Manager. Our on the ground research teams bring fluency in local languages, physical
proximity to the best sources, an ability to engage directly with local industry contacts, and an
awareness of commercial opportunities in the market.
Orissa International undertakes desk research to gather as much secondary data and
information from a variety of available and credible sources including but not limited to our
proprietary databases, specialist trade press, business and mainstream press, industry news and
events, market studies, financial reports, regulatory filings, trade associations, as well as
company profiles, publications, and annual reports. Orissa International applies processes and
series of quality checks to validate data and information to ensure the accuracy and integrity of
the report.
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2. Malaysia
2.1 Country Profile
Malaysia is a South East Asian country
made up of a land area of 330,290 sq. km
and is home to over 30.5 million people.
West Malaysia, consists of eleven states
and two federal territories, while East
Malaysia consists of the states of Sabah
and Sarawak, and a federal territory.
Malaysia’s recorded a GDP of US$ 294.4
billion in 2015, with nominal GPD per
capita of US$ 9,657. Early estimates
indicate the economy grew by 4.2% in
2016, while projections for 2017 range
between 4 and 5%. The Malaysian
Ringgit fell for the fourth consecutive year, by 4.3% against the US$ in 2016 after an 18.5%
plunge in 2015.
The services sector contribution to GDP in 2015 was 56.1%, while industry contributed to 35%
to GDP, and agriculture 8.9%. The services sector employs 59% of the workforce.
The country’s total trade in 2015
decreased by 15.1% from 2014
as both its export and import
values fell. Malaysia recorded
an export value of US$ 199.87
billion in 2015, while imports in
2015 were valued at US$ 175.96
billion. However, the country’s
FDI net inflow increased to
US$ 11,290 million in 2015 from
US$ 10,877 in the previous year.
The World Bank has ranked Malaysia at the 23rd spot in the World Bank’s Doing Business Rank
for 2017, one spot lower than its position in 2016. The slip was primarily due to a drop in
performance in the ‘Starting A Business’ and ‘Paying Taxes’ categories. Nevertheless, Malaysia
remains among the top 20 most competitive economies worldwide. Among ASEAN countries it
is trailing only Singapore, which has been ranked 2nd in the same survey.
Total Land Area:
330,290 sq. km.GDP
USD 294,390 MillionForm of Government
Federal MonarchyHeaded by a Prime Minister
GNI per capita
USD 10,570 13 Agriculture
GDP per capita, nominal 28 Industry
USD 9,657 59 Services
GDP per capita, PPP
USD 26,515
Employment Distribution in Key Sectors
(% of total employment)
Agriculture
13 Industry
28
Services
59
Trade Overview (USD millions)Balance of Trade
2014
233,927 Export
208,850 Import USD 23,908 million2015
199,869 Export
175,961 Import
Foreign Direct Investment
USD 11,290 Million net inflow
23
3,9
27
20
8,8
50
19
9,8
69
17
5,9
61
Export Import
2014 2015
USD 11,290 Million
net inflow
USD 23,908
million
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Table 1: Ease of doing business in Malaysia
2017 Rank 2016 Rank Change in Rank
Starting a business 112 59 - 53
Dealing with construction permits 13 13 No change
Getting electricity 8 7 - 1
Registering property 40 39 - 1
Getting credit 20 29 +9
Protecting minority investors 3 3 No change
Paying taxes 61 59 -2
Trading across borders 60 58 - 2
Enforcing contracts 42 40 -2
Resolving insolvency 46 45 - 1
Source: World Bank
2.2 Poultry Market
The Malaysian poultry industry has undergone a transformation over the last decade. Chicken
production has increased, and small-scale producers have been largely replaced by integrators.
Output is expanding slowly, in line with expectations for domestic demand growth. As a major
producer of poultry in the Asia Pacific region, the country is self-sufficient. Currently, Malaysia
is exporting live birds and processed poultry products to Singapore and some Middle East
countries.
Although the industry has the capacity to grow further, rising costs of production are limiting
growth as almost all feed input such as soybean meal and corn, which account for 65% of the
production cost, are imported. A reduction in fuel subsidies, depreciation of Malaysian ringgit,
and implementation of minimum wages in 2013 were also factors that have led to higher
production costs in the country’s poultry industry.
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2.2.1 Key Developments
Consumption
Poultry meat is a stable protein in the Malaysian diet due to higher priced beef and a large
Muslim population. The country’s poultry meat per capita consumption is among the highest in
the world. Malaysians consume 1.8 million chickens and 2.8 million chicken eggs daily.
Table 2: Per Capita Consumption of Poultry Meat
Year Per Capita Consumption in
Kilogram
2010 43.3
2011 43.6
2012 44.4
2013 46.5
2014 49.8
2015 50.7 Source: Department of Veterinary Service
Broiler Production
Integrated broiler contract farming is one of the systems used to increase poultry production in
Malaysia. Broiler production is increasing every year due to higher demand by local consumers
and export markets. Integrated broiler contract farming also dominates as much as 75% of the
national broiler production in the country, without which shortage of chicken in the market
would be possible.
Table 3: Integrated Broiler Farms by State
Source: Department of Veterinary Service
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Development Strategies
The Federation of Livestock Farmers’ Association of Malaysia, whose role is to maintain good
agricultural practices and compliance in the country, has announced plans to raise poultry
production efficiency and technology in the country. The association also encourages
modernization of Malaysian farms that will include transformation into closed house system in
addition to improving hygiene standards. The association aims to make its poultry products that
are sold locally to be good enough for export and to build consumer confidence in local poultry.
Foreign Investments
Global companies such as Cobb Vantress and Big Dutchman continue to expand and strengthen
its position in Malaysia by constructing additional poultry farms that can increase production
capacity as well as building state-of-the-art facilities and imposing strict biosecurity standards.
These aims to meet the expected growth of the poultry industry not only of Malaysia, but of the
Southeast Asian region.
2.2.2 Key Poultry Processing Areas
Table 4: Key Processing State and Poultry Population
There are thirteen poultry-producing states in
Malaysia according to the Department of
Veterinary Service. Johor has one of the
densest chicken population in the country, with
more than 66 million birds. On the other hand,
Kedah, Pulau Pinang and Perak are the top
broiler producing states, which account for 60%
of total farmers involved in integrated broiler
contract farming in Peninsular Malaysia.
Almost 90% of production occurs in Peninsular
Malaysia, with the rest in East Malaysia. In
terms of bird numbers, commercially bred
broilers comprise 67% of the total, while layers
make up around 25% and breeders make up 8%
of the total.
Peninsular Malaysia consists of Perlis, Kedah,
Perak, Kelantan, Terrengganu, Pahang,
Selangor, N. Sembilan, and Johor.
State Poultry Population,
2015
Perlis 1,240,122
Kedah 53,862,440
Pulau Pinang 12,933,963
Perak 37,677,871
Selangor 21,552,281
N. Sembilan 21,361,940
Melaka 20,687,676
Johor 66,912,863
Pahang 15,721,309
Terrengganu 6,324,664
Kelantan 1,811,088
Sabah 5,691,950
Sarawak 42,346,698
Grand Total 308,124,865
Source: Department of Veterinary Services
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Peninsular Malaysia has about 3,200 broiler farms, including contract and independent farmers,
as well as large vertically integrated farms. Of all livestock products sold in Peninsular Malaysia,
broiler meat is the main type that is consumed for cultural and religious reasons. Almost all the
broilers are derived from Cobb and/or Ross breeding lines. Backyard and free-range poultry
production has declined significantly, and their commercial production is insignificant.
Table 5: Number of Farm Companies in Peninsular Malaysia
4 Grand Parent Stock Farm Companies
23 Broiler Parent Stock Farm Companies (79 farms)
5 Layer Parent Stock Farm Companies (20 farms)
approximately 340 Layer Farms
approximately 3,200 Broiler Farms
Source: Department of Veterinary Service
About 65 to 70% of the output of live broilers is sold directly to wholesalers, while the remaining
30 to 35% is channeled to processing plants which sell the dressed broilers directly to restaurants,
hypermarket chains or to wholesalers and retailers.
Major Malaysian poultry companies have processing plants located in cities such as Negeri
Simbalan, Perak, Port Klang, Penang, Johor, and Selangor. The Ayamas plant in Port Klang,
Malaysia, is the largest poultry processing plant in the country. It is equipped with modern
equipment which processes more than 80,000 birds per day and 2,000 metric tonnes of further
processed poultry products per month.
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2.3 Useful Information
2.3.1 Associations
Department of Veterinary Services Malaysia Address: Wisma Tani, Block Podium, Lot 4G1, Precinct 4 Federal Government Administrative Center, 62624 Putrajaya Malaysia Website: www.dvs.gov.my Phone: +60 38870 2000 Email: [email protected]
The Department of Veterinary Services Malaysia was created to expand livestock production
and animal health. It also does research on animal diseases and animal genetic sources in
addition to controlling animal welfare and animal genetic materials. The Department also
inspects meat, milk, eggs, animal feed, abattoirs, and veterinary product processing plants.
Federation of Livestock Farmers' Associations of Malaysia Address: 93 A Jalan SS 15/5A, Subang Jaya, 47500, Petaling Jaya, Selangor, 47500, Malaysia Website: NA Phone: +60 5633 6955 Email: [email protected]
The Federation of Livestock Farmers' Associations of Malaysia (FLFAM) exists as a registered
body in Malaysia with the aim to safeguard the welfare and interest of farmers, livestock
producers and consumers. By liaising with regional livestock associations varying in types of
livestock and supply chain steps and communicating regularly with the government agencies,
FLFAM ensures the interest of the industry is considered in policy making with in tandem with
the quality of its final products for consumption.
2.3.2 Trade shows
Livestock ASIA Date: 19-21 April 2018 Venue: Kuala Lumpur Convention Center, Malaysia Website: www.livestockasia.com
Livestock ASIA is the leading event for the feed, livestock and meat industries in the region. The
event is expected to attract more than 7,000 local, regional and international trade visitors and
delegates, representing integrators, veterinarians, livestock farmers, feed millers, wholesaler,
retailers, and food processors.
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3. Indonesia
3.1 Country Profile
Indonesia, South East Asia’s largest
economy, has an estimated total
population of 255.5 million, making it
the world’s fourth most populous
country. Spread across a chain of
thousands of islands, its total territory
includes 1.9 million square km of land
and 5.8 million square km of water.
Indonesia recorded a GDP of US$ 857.6
billion in 2015, representing 1.3% of the
world’s economy. Indonesia’s economy
alone makes up nearly half of ASEAN’s
total economic output. Early estimates indicate that its GDP grew by an approximately 5% in
2016 and the country’s central bank forecasts growth in 2017 to range between 5.1 and 5.2%.
Indonesia has a young, growing and rapidly urbanizing population that makes the country one
of the fastest growing consumer markets in the world. Its gross National income (GNI) per capita
is US$ 3,440. The Services sector employs 43% of its workforce, while Agriculture employs 35%
of it, and Industry 1%.
Indonesia recorded a US$ 7.6 billion
trade surplus in 2015, a significant
improvement from the US$ 1.9 billion
trade deficit in the preceding year. 2016
saw imports decrease by 19.9% to
US$ 142.7 billion (from US$ 178.2 billion
in 2014) while exports also fell by 14.8%
from US$ 176.3 billion in 2014 to
US$ 150.3 billion in 2015.
Total FDI in 2016 was US$ 28.9 billion, slightly lower than the US$ 29.3 billion recorded a year
earlier.
Indonesia ranks 106th in the latest Doing Business Rank report of the World Bank for 2017. The
country went up by 15 places from 106 to 91, and is among the top 10 biggest climbers.
Indonesia’s overall improved performance in the 2017 report is attributed to the government’s
efforts to simplify and remove unnecessary regulations.
Total Land Area:
1,913,579 sq. km.GDP
USD 857,603 MillionForm of Government
DemocraticHeaded by a President
GNI per capita
USD 3,440 35 Agriculture
GDP per capita, nominal 22 Industry
USD 3,357 43 Services
GDP per capita, PPP
USD 11,108
Employment Distribution in Key Sectors
(% of total employment)
Agriculture
35
Industry
22
Services
43
Trade Overview (USD millions)Balance of Trade
2014
176,293 Export
178,179 Import USD 7,587 million2015
150,282 Export
142,695 Import
Foreign Direct Investment
USD 16,073 Million net inflow
17
6,2
93
17
8,1
79
15
0,2
82
14
2,6
95
Export Import
2014 2015
USD 16,073 Million
net inflow
USD 7,587
million
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Table 6: Ease of doing business in Indonesia
2017 Rank 2016 Rank Change in Rank
Starting a business 151 167 +16
Dealing with construction permits 116 113 -3
Getting electricity 49 61 +12
Registering property 118 123 +5
Getting credit 62 70 +8
Protecting minority investors 70 69 -1
Paying taxes 104 115 +11
Trading across borders 108 113 +5
Enforcing contracts 166 171 +5
Resolving insolvency 76 74 - 2
Source: World Bank
3.2 Poultry Market
Indonesia’s demand for poultry meat is expected to continue growing, primarily driven by the
growing purchasing power of the country’s expanding middle class. Poultry production in the
country has been increasing and, according to public private partnership FoodTechIndonesia,
Indonesian poultry production is estimated to have been worth EUR10 billion (US$11 billion) in
2015 with broiler meat accounting for approximately three-quarters of the total. The poultry
meat sector is projected to grow 70 to 90% by 2020 if GDP increases by 6% per annum. The layer
industry is also projected to grow at around 50 to 60% of the broiler sector.
Indonesia’s commercial chicken flock is estimated at 3.5 billion broilers, 200 million layers, and
24.8 million breeders in 2015. Per capita poultry meat and egg consumption in Indonesia remain
low compared with neighboring countries such as Thailand and Malaysia. Additionally, there is
still a strong demand among Indonesia’s consumers for live, rather than processed poultry.
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3.2.1 Key Developments
Consumption
Indonesia still has relatively lower meat consumption per capita compared to other Southeast
Asian countries. However, demand is rapidly increasing and poultry meat is the leading source
of protein in the country, accounting for approximately 87% of total meat consumption. In
addition, key drivers of growth in the country’s poultry market are population growth and
urbanization level.
Poultry Oversupply
Over the past few years, supply has outpaced demand, causing day-old chick (DOC) prices to
plummet. A combination of over-investment (i.e. over-importation of grandparent stock (GPS),
despite being regulated by the government’s quota system) and weaker purchasing power
(lower commodity prices, higher cost of living due to subsidy removal, and a weaker rupiah) led
to an oversupply of DOC by 20-30% in 2014. To address the oversupply, the Indonesian
government coordinated a mass culling of six million parent stock which account for half of the
country’s broiler replenishment. Four million grandparent stock were culled in Q4 2015, with
another two million eliminated in Q1 2016.
Figure 3: Poultry per capita consumption Source: Rabobank
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Table 7: Annual Broiler DOC (million heads)
Year Demand Supply
2012 1,660 1,800
2013 1,970 2,200
2014 2,100 2,500
2015 2,500 3,000
2016 2,650 3,250
Source: USDA FAS
Poultry Farming System
Indonesia’s poultry farming system is slowly transitioning from intensive, open-housed system
farms to closed-house, automated housing system farms. This change is the result of increasing
poultry market competitiveness, characterized by increasing labor costs, the quest for higher
yields, and disease pressures such as highly pathogenic avian influenza (HPAI).
3.2.2 Key Poultry Processing Areas
The poultry industry is spread throughout Indonesia, with significant egg production in East Java,
a reflection of the availability of locally grown corn and the ease of transporting eggs from to
the markets in West Java. Broiler production is countrywide but focused in West Java (Bandung),
close to its fresh bird markets that lack an adequate cold chain. Village poultry exists across
Indonesia.
Figure 4: Relationship between Broiler, Egg, and Wet Corn Production by Region Source: USAID
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Broiler and egg production, by region, is highly correlated to the population. This has evolved
due to the historical demand for live birds—which cannot be transported efficiently over even
medium distances in Indonesia due to high temperatures and poor road infrastructure—and
high demand for fresh eggs. The development of the industry therefore follows the
development of the wet markets around the large populations of West, East and Central Java.
Table 8: Broiler Population in Key Cities (heads)
Province 2012 2013 2014 2015 2016
West Java 610.436.303 645.229.707 643.321.729 631.154.917 644.923.995
East Java 155.945.927 162.296.157 179.830.682 194.064.874 196.393.653
Central Java 76.906.291 103.964.760 108.195.894 126.102.735 128.105.648
South Kalimantan
40.603.189 51.860.699 57.727.521 64.657.853 82.731.607
Banten 54.151.644 61.230.844 63.324.448 74.903.983 75.342.281
Source: Director General of Livestock Services
Java is the largest producer of chicken meat in Indonesia. The poultry farms in Java are
supported by 25 animal feed factories or the largest in the country located in Banten, Jakarta,
West Java and East Java. The fact that Java is the largest market for chicken meat has boosted
the growth of chicken farms and production in the island. The largest chicken meat production
center is West Java, accounting for 40% of the total production in Java, followed by East Java
accounting for 37% and Central Java for 21%.
West Java is the largest producer of pure bred chickens, but the largest producer of free range
chickens is East Java mainly the districts of Lamongan, Malang, Blitar, Probolinggo, Tulungagung
and Trenggalek.
Table 9: Broiler Meat Production in Key Cities (in tons)
Province 2012 2013 2014 2015 2016
West Java 498.862 563.529 543.765 530.423 529.932
East Java 162.845 162.892 198.016 203.139 208.218
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Central Java 114.178 123.726 130.357 158.673 163.252
South Kalimantan 36.177 55.032 46.511 60.952 81.092
Banten 111.159 109.029 96.554 73.488 73.918
Source: Director General of Livestock Services
Production and supplies of DOCs are dominated by a few big players that control integrated
industry like Charoen Pokphand and Japfa Comfeed. The big players control the business from
the upstream sector (animal feed production and breeding), to the midstream sector
(commercial poultry farms) and downstream sector (chicken slaughterhouse and chicken meat
processing). In the commercial poultry farming, they are involved in partnerships so that they
do not have to own lands and build chicken coops themselves.
According to the Indonesian Poultry Slaughterhouses Association, there are a total of 130
chicken processing plants and slaughterhouses in the country. Of the figure, the number of
chicken processing plant is less than 100, with the number of grade A and B plants no more than
30. Major poultry integrators in the country such as Charoen Pokphand and Japfa Comfeed have
processing plants in the cities of Banten, Medan, Sidoarjo, Surabaya, Pekanbaru, Banjarbaru,
Lampung, Bogor, Pabelan, Grobogan, and Bali.
3.3 Useful Information
3.3.1 Associations
Perhimpunan Insan Perunggasan Rakyat Indonesia (PINSAR) Address: Jl. Raya Imam Bonjol 34 G, Tangerang 15115, Indonesia Website: www.pinsarindonesia.com Phone: +62 21 5366 1847 Fax: +62 621 5520 753 Email: NA
Perhimpunan Insan Perunggasan Rakyat Indonesia is the biggest poultry association in
Indonesia. It is a partner of the government in deciding policies for the poultry industry. The
association includes some of the major poultry companies in Indonesia, namely Chaoren
Pokphand and JAPFA Comfeed.
Perhimpunan Peternak Unggas Nusanatara (PPUN) Address: BSD City Golden Vienna I, Blok B - 4 No. 10, Kencana Loka, Tangerang, Indonesia
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Website: www.ppunbogor.blogspot.co.id Phone: +62 21 9286 5709 / +62 21 7424 713 Fax: +62 21 7587 5513 / +62 21 7424 713 Email: NA
Established in 2001, this association's purpose is to be a platform of communication for small-
medium sized poultry farmers. The association arranges meeting to discuss poultry issues in the
country. It also organizes activities that campaigns for poultry nutrition.
3.3.2 Trade shows
ILDEX Date: 18-20 May 2017 Venue: JIEXPO, Jakarta, Indonesia Website: www.ildex-indonesia.com
ILDEX Indonesia is a trade fair for livestock, dairy products, meat processing and aquaculture.
This event also brings international expertise to satisfy the needs of the local livestock industry.
Exhibitors in this tradeshow are involved in animal feed and animal health, genetics and
breeding, and traders, among others.
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4. Thailand
4.1 Country Profile
Thailand sits on South East Asia’s
Indochina Peninsula, and borders by
Myanmar, Laos, Cambodia, and
Malaysia. The country has an
estimated population of around 68.8
million and GDP of US$ 395.7 billion in
2015. Its nominal GPD per capita in
2015 was US$ 5,737 or US$ 16,074
GDP per capita at PPP.
Thailand, the world’s 32nd largest
economy and the second largest
economy in ASEAN, accounts for 17%
of ASEAN’s GDP. Its economy is estimated to have expanded by 3.2 – 3.3% in 2016, and for now,
the government estimates that growth will be 3.4% in 2017.
The country’s Agricultural sector is the largest employing sector, employing 40% of the total
workforce, followed by Services (39%), and the Industrial sector (21%).
Thailand’s trade balance reached
US$ 11.645 billion in 2015, its first surplus
after four straight years of deficit. The
country’s overall exports were US$ 214.396
billion in 2015, with the US as its top export
market. Exports grew only marginally, by
0.45% in 2016.
Imports fell by 11.1% in 2015, the highest
contraction since 2009. The country’s FDI
inflow in 2015 increased to US$ 8,027.5 million from US$ 3,720.2 million in the previous year.
Thailand currently ranks 46th in the World Bank’s latest Doing Business Rank for 2017. The
country’s ranks 3rd among the ASEAN countries, behind Singapore and Malaysia. According to
the World Bank, Thailand is steadily making progress to ease the process of doing business and
it continues to focus on reforms to promote a better business environment, in addition to
implementing public infrastructure investments, developing skilled-workers through quality
education, and promoting innovations.
Total Land Area:
513,120 sq. km.GDP
USD 395,726 MillionForm of Government
Constitutional MonarchyHeaded by a Prime Minister
GNI per capita
USD 5,620 40 Agriculture
GDP per capita, nominal 21 Industry
USD 5,737 39 Services
GDP per capita, PPP
USD 16,064
Employment Distribution in Key Sectors
(% of total employment)
Agriculture
40
Industry
21
Services
39
Trade Overview (USD millions)Balance of Trade
2014
227,574 Export
227,952 Import USD 11,645 million2015
214,396 Export
202,751 Import
Foreign Direct Investment
USD 8,027 Million net inflow
22
7,5
74
22
7,9
52
21
4,3
96
20
2,7
51
Export Import
2014 2015
USD 8,027 Million
net inflow
USD 11,645
million
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Table 10: Ease of doing business in Thailand
2017 Rank 2016 Rank Change in Rank
Starting a business 78 93 +15
Dealing with construction permits 42 38 -4
Getting electricity 37 34 -3
Registering property 68 67 -1
Getting credit 82 97 +15
Protecting minority investors 27 25 - 2
Paying taxes 109 106 - 3
Trading across borders 56 54 - 2
Enforcing contracts 51 51 No change
Resolving insolvency 23 26 +3
Source: World Bank
4.2 Poultry Market
Thailand is one of the world’s leading producers of agricultural commodities. Its poultry industry
is the largest in Southeast Asia and is home to major local and foreign players. Over the past four
decades, Thailand’s poultry sector has transformed itself from backyard farming into a leading
poultry exporter. Due to the potential growth in export demand, driven by the robust prices for
live broilers and chicken meat, as well as the anticipated increase in chick production capacity,
Thai chicken meat production is forecast to increase by 5-7% in 2017.
Thailand's poultry industry has successfully recovered from the avian flu outbreak in 2004 and
has returned to dynamic growth. A positive outcome from the outbreak was that it forced the
Thai poultry industry to adopt new farming practices and farming facilities. With its new industry
structures, Thailand is expected to increase its production capacity and remain a recognized
leader in global poultry exports.
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4.2.1 Key Developments
Domestic Consumption
Reflecting trends in the tourism industry and an anticipated recovery of the Thai economy,
domestic consumption of chicken meat is forecasted to increase by 4-5% in 2017. Although
recent trends have shown Thais moving toward a big-city lifestyle and away from traditional
practices, most Thais still buy fresh chicken meat from traditional markets. This accounts for
about 60-70% of the total domestic chicken meat sales. In addition, trade sources also expect
chicken meat consumption in the ready-to-eat and quick service restaurant sectors to continue
to grow annually for the next few years.
Table 11: Thailand Broiler Meat (Poultry) Domestic Consumption by Year
Market Year Domestic Consumption (in 1000 MT) Growth Rate
2012 932 7.87%
2013 1,039 11.48%
2014 1,050 1.06%
2015 1,080 2.86%
2016 1,117 3.43%
2017E 1,167 4.48% Source: Index Mundi
Export Trends
Global chicken consumption continues to grow as chicken is cheaper than other meats. The
prospect of the Thai frozen and processed chicken industry in the next 1-3 years is promising,
underpinned by the country’s continuing export market growth of 10-15% per year. The
outbreak of the avian flu in many countries will also enhance the export opportunity for Thai
chick chickens to continue to expand, especially to Japan, a major export country for Thai poultry
together with the European Union.
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Source: Thai Broiler Processing Export Association Technology
In recent years, animal welfare practices and technology have become extremely important in
many western countries. As a major poultry exporter, Thailand has been moving away from
contract farming and towards vertical integration in order to ensure compliance with European
importers’ more stringent requirement. This opens up opportunities for equipment and
technology used in the whole chain process such as automated systems, food safety, and animal
well-being.
Trade Development
Thailand’s poultry prospects are looking more promising due to the resumption of fresh poultry
imports by many countries, after Thailand’s bird flu outbreak was brought under control. South
Korea, in particular, has already lifted a 12-year ban on Thai chicken imports that is expected to
increase Thai’s poultry trade by 3% in 2017.
Table 12: Expected Chicken Meat Exports of Thailand 2016
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4.2.2 Key Poultry Processing Areas
The major broiler producing provinces can be divided into different groups. The first group
include the key provinces Nakorn Ratchasima (or Korat), Burirum, Surin, Prachinburi and Lopburi.
The second group includes Chonburi, Chachoengsao and Ayudhaya in the Central and East
region. Recently, broiler production has been expanded to the eastern provinces Saraburi and
Suphanburi in the Central West. Moreover, Chachoengsao, Ayudhaya and Nakorn Nayok are also
the major producing provinces on layer for hen egg production.
Table 13: Broiler production in Thailand by region
Source: IPSOS Business Consulting
There are two main species of poultry produced in Thailand, chicken and duck. Poultry
population and production are highly concentrated in central Thailand as broiler producers need
to be located near certified slaughterhouses, feed mills and food processing plants. These
facilities are also concentrated in central Thailand. Large-size farms, with an average 70,000
chickens per farm account for 90% of chicken broilers in the central region.
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Figure 5: Chicken Population Density in Thailand Source: IPSOS Business Consulting
Integrated commercial farms set very high biosecurity standards, and currently cover 80-90% of
national production. Traditional poultry farms are spread across the country and account for 10%
of national production with most of their produce being consumed locally.
Table 14: Commercial broiler holding by farm size
Source: IPSOS Business Consulting
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There are 128 poultry processing establishments across 29 provinces that were approved for
export manufacturing by the country’s Department of Livestock Development as of July 2016.
The majority of the processing plants can be found in Samutsakhon which is located in the
central area of Thailand.
Table 15: Key Locations of Poultry Processing Plants
Province Number of Processing Plants
SAMUTSAKHON 22
SAMUT PRAKAN 13
CHON BURI 10
LOPBURI 10
SARABURI 8
BANGKOK 8
PATHUMTHANI 7
Source: Department of Livestock Development
There are more than 40 players active in the Thai poultry industry. Integrated commercial farms
or large to medium commercial farms make up only around 20% of these market players. In
terms of production volume, Charoen Pokphand Foods (CPF) Thailand is the largest company,
accounting for 29% of total production, followed by Betagro, Saha Farm, Laemthong, Thai Foods
Group, and GFPT.
Thailand’s poultry export production is dominated by five companies which are responsible for
70-75% of the total export production. According to the Thai Broiler Processing Exporters
Association, the largest are CP, Betagro, Saha Farm, GFPT and Cargill. Moreover, most of these
companies have implemented fully vertically integration farming.
Increasing scale of production by industrializing farms was a key structural reform that aimed to
meet growing demand for poultry while controlling costs. The reform led to consolidation within
the industry, which saw the average size of commercial farms increase while the number of
producers declined. Major producers, such as Charoen Pokphand Foods and Betagro, have not
only adopted advanced technology, they have also helped transfer this technology to smaller
farms. Such technology has shortened the broiler period from 60 days to 40-49 days as well as
improved the feed conversion ratio, and reduced costs.
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4.3 Useful Information
4.3.1 Associations
Department of Livestock Development
Address: Khwaeng Thanon Phaya Thai, Khet Ratchathewi, Krung Thep Maha Nakhon 10400, Thailand Website: www.dld.go.th Phone: +66 2653 4444 Email: [email protected]
The Department of Livestock Development is responsible for animal health, animal production
and livestock extension, food safety of animal-derived products, veterinary public health, animal
welfare, environmental impact of livestock farms and international animal health matters
including disease control and eradication, quarantine, disease reporting, import-export controls,
health certification, and monitoring of animal farms and slaughterhouses in Thailand.
Thai Broiler Processing Exporters Association
Address: 313 C.P. Tower, 22nd Floor, Silom Road, Bangrak, Bangkok, 10500 Thailand
Website: www.thaipoultry.org
Phone: +66 2638 219 Email: [email protected]
Thai Broiler Processing Exporters Association was established in 1991 to act as a regulating and
service agency for the large number of Thai chicken meat producers and exporters. All of the
association's members are leading Thai producers and exporters with decades of proven track
record in the chicken industry.
4.3.2 Trade shows
VIV Asia Date: 15-17 March 2017 Venue: BITEC Bangkok, Thailand Website: www.vivasia.nl
A biennial trade show that showcases companies involved in industrial feed processing
equipment, supplies and raw materials, animal feed, medicines and breeding tools, farm
equipment, slaughter equipment, meat processing and packaging products as well as systems,
dairy products, organic food items.
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5. Philippines
5.1 Country Profile
The Philippines, officially known as the
Republic of the Philippines, is a sovereign
island country in South East Asia situated
in the western Pacific Ocean with a total
land area of 300,00 square kilometers.
The Philippines’ recorded GDP in 2015 was
US$ 289.5 billion with the Services sector
contributing 59% to total GDP, followed by
Industrial (31%), and Agriculture (10%).
The economy grew by 6.8% in 2016, which
is among the fastest in Asia, and is
projected to grow by as much as 7-8% in
2017 as the government ramps up infrastructure spending. The Services sector employs more
than half of its workforce, while Industrial employs 15%, and Agriculture 32%. The Philippines is
classified as a low middle income nation with a GNI per capita of US$ 3,540.
The country’s total external trade in goods in 2015 was US$ 128.9 billion. Exports for Jan–Nov
2016 were $51.361 billion, a 5.2% decrease
from 2015’s $54.168 billion. The decline is
attributed to a fall in electronics exports. In
contrast, the Philippines saw an increase in
inbound shipments, with orders of capital
goods, raw materials and consumer goods
increased by double digits. For the year,
inbound shipments grew 13.7% to $73.724
billion, against the government’s 10% target
for 2016. The country’s net FDI inflow was at US$ 5,724 million in 2015.
The Philippines’ ranking in the latest Doing Business Rank report of the World Bank for 2017
remains unchanged at 99th place. The country has improved in various areas, from dealing with
construction permits, getting electricity, and paying taxes. Philippines has improved the
transparency of its building regulations, made paying taxes easier by introducing an online
system for filing and paying and by allowing for online corporate income tax and VAT returns to
be completed offline. The government’s launch of an online facility in paying other government
mandatory contributions such as health and social security also contributed to its improved
ranking in 2017.
Trade Overview (USD millions)Balance of Trade
2014
61,810 Export
67,757 Import -USD 11,647 million2015
58,648 Export
70,295 Import
Foreign Direct Investment
USD 5,724 Million net inflow
61
,81
0
67
,75
7
58
,64
8
70
,29
5
Export Import
2014 2015
USD 5,724 Million
net inflow
-USD 11,647
million
Total Land Area:
300,000 sq. km.GDP
USD 289,503 MillionForm of Government
RepublicHeaded by a President
GNI per capita
USD 3,540 32 Agriculture
GDP per capita, nominal 15 Industry
USD 2,850 53 Services
GDP per capita, PPP
USD 7,241
Employment Distribution in Key Sectors
(% of total employment)
Agriculture
32
Industry
15
Services
53
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Table 16: Ease of doing business in the Philippines
2017 Rank 2016 Rank Change in Rank
Starting a business 171 164 - 7
Dealing with construction permits 85 103 +18
Getting electricity 22 30 +8
Registering property 112 109 - 3
Getting credit 118 109 -9
Protecting minority investors 137 136 -1
Paying taxes 115 120 +5
Trading across borders 95 93 - 2
Enforcing contracts 136 136 No change
Resolving insolvency 56 54 - 2
Source: World Bank
5.2 Poultry Market
The Philippines is a producer of poultry products, and it is also self-sufficient for what concerns
domestic demand. About 800 million broilers are produced annually and in spite of rising
population, the country’s supply continues to meet consumer demands. The country’s poultry
production is likely expanded to 1.83 million metric tons (MMT), 10 % higher than the 1.66 MMT
recorded in 2015, according to the United Broiler Raisers Association (Ubra). The country’s
broiler production could expand by nearly 17% to 1.4 billion heads in 2017 on the back of
favorable weather and the entry of new industry players.
Chicken broiler and egg production are the most developed animal enterprises in the Philippines
today. The poultry industry in fact began as a backyard enterprise but has shifted to the
formation of very large integrated contract farming operations. Poultry production in the
Philippines is set to outperform the other sectors, as it will attract the majority of investment in
the coming years, both domestic and foreign.
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5.2.1 Key Developments
Consumption
In 2014, the Philippines’s population reached 100M inhabitants, making it the 12th most
populous country in the world. And with one of the highest population growth rate in the world,
it is estimated a corresponding 2% per annum increase in the consumption of meat and meat
products as a source of protein. Based on the Philippine Statistics Authority-Bureau of Statistics
(PSA-BSA), demand for meat reached 1,484,000,000 kg in 2014 for an estimated 50 million meat
eating Filipinos, 10 years old and above.
Poultry Import Bans
Import bans on poultry products including dressed and deboned chicken, duck and eggs,
following outbreaks of bird flu in Europe and Asia, are expected to benefit the local poultry
industry. The Philippines is one of the few countries in Southeast Asia that remains free from
the dreaded avian influenza virus mainly because it is isolated by the bodies of water which
surround its islands and it does not share borders with other countries. The country’s bird flu-
free status will allow local poultry producers to access major markets for poultry products such
as the Middle East.
Foreign Investments
The Philippine poultry industry is starting to attract investments from overseas, helping local
producers and workers source seeds, feed, grow and process chicken. Foreign investors
contribute in improving the system of hygiene, food safety, and quality by setting high level
partnerships with the poultry growers and farmers.
Source: National Meat Inspection Service
Table 17: Per Capita Consumption of Meat in kilogram/year
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5.2.2 Key Poultry Processing Areas
Broiler population as of July 2016 was 64.84
million birds. Region III (Central Luzon) had the
highest broiler inventory with a total share of
30.58% in the country’s total broiler inventory.
The inventory of layer poultry as of 2016, was
32.47 million birds. The top three regions in
terms of layer inventory were Region IV-A
(CALABARZON) with 35.8% share, Region III
(Central Luzon) with 24.34% share and Region
X (Northern Mindanao) with 10.13% share.
The total native/improved chicken inventory
as of July 2016 was 77.23 million birds. The
region with highest inventory for
native/improved chicken was Region X
(Northern Mindanao) with 10.91% share to the
total native chicken inventory.
The total volume of chicken production
increased from 1,571,762 metric tons in 2014
to 1,660,813 metric tons in 2015. This brought
a 5.67% growth in production compared to its
2014 level.
There are a total of 114 accredited poultry dressing plants in the Philippines as of February 2017.
Majority of the dressing plants are located in region III particularly in the provinces of Bulacan,
Nueva Ecija, and Pampanga. There are 10 dressing plants in this region that are class AAA
certified, the highest certification that the country’s National Meat Inspection Service gives to
dressing plants. Plants with this certification can export and distribute outside of the province.
The provinces in region IV-A where poultry dressing plants can be found are Rizal, Batangas,
Laguna, and Quezon. There are six dressing plants in this region that are class AAA certified.
Region X has the third highest number of poultry dressing plants in the country. Misamis Oriental,
Misamis Occidental, Cagayan de Oro, and Bukidnon are the provinces where these dressing
plants are located. There are 3 class AAA certified dressing plants in this region.
Source: Philippine Statistics Authority
Figure 6: Thematic Map of Chicken Production, 2015 Source: Philippine Statistics Authority
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Table 18: Dressing Plants in the Philippines
Eighteen accredited class AAA meat establishments
exported a volume of 4,542,063 kilograms of meat and meat
products to 9 foreign markets in 2014. The target markets of
Philippine meat exports were Japan, Brunei, South Korea,
Papua New Guinea, Australia, Dubai, Kuwait, Qatar, and
Saudi Arabia. Japan was the largest market for poultry with
11 meat establishments or 61% of exporters exporting 62%
of the total export of meat and meat products.
San Miguel is among the major players in the poultry
processing industry of the Philippines. Other major players
include Bounty Fresh, Universal Robina Corporation, and
Cargill Philippines. The country’s poultry industry has
commodity characteristics and is subject to frequent
changes in demand and supply. Most of the major integrated
producers employ contract-growing schemes for the
production of live broilers and have likewise engaged in
contract breeding and toll dressing arrangements.
Region Number of Poultry
Dressing Plants
I 14
II 5
III 20
IV-A 15
IV-B 2
V 7
VI 6
VII 8
VIII 7
IX 4
X 13
XI 7
XII 3
NIR 3
Total 114
Source: National Meat Inspection Service
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5.3 Useful Information
5.3.1 Associations
United Broilers Raisers Association Address: 124 General Luna St., Gitnang Bayan San Mateo, Rizal, 1850 Philippines Website NA Phone: +63 2941 5915 Email: [email protected]
The United Broiler Raisers Association is a non-stock and non-profit national association of
mainly small and medium scale poultry broiler raisers with chapters in all the major poultry
producing areas of the country. Aside from interfacing with government and other NGO’s, UBRA
seeks to promote the efficiency and competitiveness of the Philippine broiler industry.
Philippine College of Poultry Practitioners Address: Manila East Road, Tanay Rizal, 1980 Philippines Website www.rasterizedesigns.com/pcpporg/index.html Phone: +63 2654 5523 Email: [email protected]
The Philippine College of Poultry Practitioners, Inc. is an organization of poultry practitioners
that advocates the professional advancement of its members and is committed to the upliftment
of the Philippine poultry industry. It contributes to the development of the poultry industry
through the promotion of ethical poultry practice by providing an effective forum for the
professional veterinary expertise.
5.3.2 Trade shows
Livestock Philippines Date: 24-26 May 2017 Venue: SMX Convention Center Manila, Philippines Website: www.livestockphilippines.com Livestock Philippines is the country’s 1st International Livestock Nutrition, Health and Production, and Meat Industry Expo. It is the premier biennial event for the livestock, feed milling and meat industries in the country.
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6. Vietnam
6.1 Country Profile
Having an area of approximately
330,951 km2 and a coastline of 3,444
km, Vietnam comes with abundant
natural resources, such as natural
water resources, minerals, oil and gas,
fertile soil.
Vietnam’s average GDP growth rate
throughout the 2000s was 6.4% per
year. In 2015, the country recorded a
GDP of US$ 193.4 billion and it grew by
and estimated 6.21% in 2016, making
it one of the fastest growing markets in
the work. Its nominal GDP per capita in 2015 was US$ 2,109 or US$ 6,083 GDP per capita at PPP.
Vietnam’s Agricultural sector is the largest employing sector with 47% share of total
employment, followed by Services sector (32%), and the Industrial sector (21%).
Vietnam posted a trade surplus of US$ 2.52 billion in 2016, reversing from a US$ 3.55 billion
deficit a year earlier. Exports in 2016
expanded 9% to $176.6 billion, and while
imports rose 5.2% to US$ 174.1 billion.
Meanwhile, the country’s FDI net inflow in
2015 stands at US$ 11,800 million. It
received an estimated US$ 15.8 billion in
actual FDI in 2016, up 9% from 2015.
Vietnam has improved in its ranking in the latest 2017 report of World Bank’s Doing Business
Rank, going from to 82nd from 91st place. A review of the indicators shows that the country has
made great strides in protecting minority investors, paying taxes, and trading across borders, as
well as seen an improvement in resolving insolvency. However, Vietnam lost points in other
areas: starting a business, dealing with construction permits, registering property, getting credit,
and enforcing contracts.
Trade Overview (USD millions)Balance of Trade
2014
148,092 Export
145,686 Import -USD 3,716 million2015
162,014 Export
165,730 Import
Foreign Direct Investment
USD 11,800 Million net inflow
14
8,0
92
14
5,6
86
16
2,0
14
16
5,7
30
Export Import
2014 2015
USD 11,800 Million
net inflow
-USD 3,716
million
Total Land Area:
330,951 sq. km.GDP
USD 193,407 MillionForm of Government
Socialist RepublicHeaded by a President
GNI per capita
USD 1,980 47 Agriculture
GDP per capita, nominal 21 Industry
USD 2,109 32 Services
GDP per capita, PPP
USD 6,083
Employment Distribution in Key Sectors
(% of total employment)
Agriculture
47Industry
21
Services
32
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Table 19: Ease of doing business in Vietnam
2017 Rank 2016 Rank Change in Rank
Starting a business 121 111 -10
Dealing with construction permits 24 21 -3
Getting electricity 96 101 +5
Registering property 59 58 -1
Getting credit 32 29 -3
Protecting minority investors 87 118 +31
Paying taxes 167 178 +11
Trading across borders 93 108 +15
Enforcing contracts 69 68 -1
Resolving insolvency 125 126 +1
Source: World Bank
6.2 Poultry Market
Vietnam’s demand for poultry meat is expected to triple by 2020, while demand for eggs is set
to double. The forecast, released by the Agriculture Ministry’s Department of Livestock
Production, reflects Vietnam’s increasing population and rising living standards. Due to
urbanization, a rapidly growing population, and a desire for a healthy lifestyle, demand for the
latest innovations in the livestock industry is urgently needed.
After pork, poultry is the second most important meat for the Vietnamese people. Production
capacity in poultry is far less than that of pork and the poultry sector is not able to supply
sufficiently for local consumption. Currently, poultry production is mainly owned by small-scale
households. Among main constraints faced by these small-scale households are lack of
knowledge and access to production innovation due to weak capital investment, limited ability
in disease prevention and control. Thus, Vietnam has to rely on imports of frozen chicken parts
from countries such as the United States, Turkey, and Hong Kong. Over 85% of Vietnam’s
livestock is raised on small-scale farms. This arrangement leads to un-scalable production levels
and prices, as well as inconsistence in the quality of breeders.
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6.2.1 Key Developments
High Production Costs
Vietnamese poultry producers could lose their market to regional and international rivals if they
don’t improve their productivity and cut costs. Although local chicken production grew at a fast
pace between 2003-2012 -- 9.3% a year compared to the world rate at 3.7%, Vietnamese
productivity is lower.
In 2010, it took local big farms an average of 49 days to raise a 2.2-kilogram chicken, and it was
much longer for small farms. Elsewhere around the world, the time needed was 37-41 days and
it is expected to be shortened further to 31 days by 2020. In addition, most of chicken
production's inputs are imported, from breeds and veterinary drugs to animal feed. As a result,
Vietnamese chicken products' prices are 1.5 times higher, or even twice the world's.
In addition, the country’s trade agreements liberalize most of import tariffs and therefore pose
challenges for local producers in competing in prices.
Poultry Importation
The demand for poultry meat in Vietnam has increased over the past five years. As a result, local
poultry production has also increased. However, local production is not enough to meet the
country’s local demand hence poultry meat imports have also increased steadily.
Table 20: Vietnam Poultry Market
In 1,000 metric tons
2014 2015 2016E 2017E
Total Consumption 1,240 1,390 1,481 1,549
Total Local Production 875 908 945 985
Total Imports 613 662 662 690
Total Exports 0.2 0.2 0.2 0.2 Source: USDA FAS
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6.2.2 Key Poultry Processing Areas
Red River Delta, Mekong River Delta and North East regions are the agroecological regions with
the highest population of poultry in the country. The poultry production in Vietnam is mainly in
the hands of small holders, closed to habitant area. However, poultry production in farms of
medium to big size, in separated area is increasing.
Table 21: Number of Poultry by Region
in thousand heads
Region 2012 2013 2014 2015
Red River Delta 81,344
87,885
88,928
90,949
Northern midlands and mountain areas 62,526
63,230
66,970
70,567
Northern Central area and Central coastal area
66,175
65,813
67,990
71,135
Central Highlands 13,754
14,638
15,513
16,490
South East 23,335
27,428
30,049
34,306
Mekong River Delta 61,327
58,703
58,246
58,459
Total 308,461
317,697
327,696
341,906
Source: General Statistics Office of Vietnam
So far livestock processing in Vietnam has not been practiced in an advanced way with
technology or comprehensive equipment. For the livestock sector, the term “processing” is
understood as “slaughtering” because slaughtering is the main activity done after livestock is
taken from the farms and before it is sold at the wet markets. The vast majority of livestock
slaughtering in Vietnam is carried out under unhygienic backyard conditions by households who
specialized in this job.
Large commercial public owned plants or privately owned slaughtering plants buy from
commercial farms and sell mainly to supermarket and restaurants or hotels. Meat inspection
does not always take place and is best described as cursory. Yet, this fresh meat is sold right
after slaughtering at wet markets without any further processing like cutting, slicing, portioning,
forming nor packaging. Most of the meat after slaughtering is distributed to wet markets. Even
though urbanization is currently booming in Vietnam which encourages the establishment of
supermarkets, hypermarkets and many other convenient department stores, buying fresh food
including meat, fish, vegetable at wet markets is still daily practiced by majority of Vietnamʼs
consumers.
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6.3 Useful Information
6.3.1 Associations
General Department of Livestock
Address: 16 Thuy Khue Street, Tay Ho, Hanoi Vietnam Website: www.cucchannuoi.gov.vn Phone: +84 4372 86130 Email: [email protected] The General Department of Livestock directs the local planning associated with the processing of livestock and poultry in Vietnam. It also direct and implements plans for the regional development of livestock farms including poultry production.
6.3.2 Trade shows
ILDEX Vietnam Date: 14-16 March 2018 Venue: SECC, Ho Chi Minh City, Vietnam Website: www.ildex-vietnam.com ILDEX Vietnam is a trade fair for livestock, dairy products, meat processing and aquaculture. This event also brings international expertise to satisfy the needs of the local livestock industry. Exhibitors in this tradeshow are involved in animal feed and animal health, genetics and breeding, and traders, among others.
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Poultry Sector in South East Asia
© 2017 by Orissa International. All rights reserved. Permission to reproduce is required
7. References
7.1 Malaysia
“The Malaysian Poultry Industry: Our Vision of the Future, Advancing Poultry Production for Food Security”, 2013, The Federation of Livestock Farmers’ Association of Malaysia “Malaysia Broiler Meat Sector”, 2014, USDA Foreign Agricultural Service “Participation of Farmers in the Integrated Broiler Contract Farming in Malaysia”, 2016, International Journal of Current Multidisciplinary Studies “Review of Domestics Broiler Market: Final Report”, 2014, Malaysia Competition Commission “Cobb Extends Leong Hup Agreement in Malaysia”, 2016, The Poultry Site
7.2 Indonesia
“Indonesia Voluntary Poultry Report”, 2017, USDA Foreign Agricultural Services “Indonesia’s Poultry Value Chain”, 2013, United States Agency for International Development “Meeting the Challenge of Indonesia’s Growing Demand for Poultry”, 2014, WATTagNet “Foreign Firms Dominates Indonesian Broiler Production”, 2016, WATTagNet “Indonesia’s Growing Appetite for Animal Protein: An Overview of Business Models, Opportunities and Strategies”, 2016, DBS Asian Insights
7.3 Thailand
“The Poultry Sector in Thailand”, 2016, Netherlands Embassy in Bangkok “Thailand Industry Outlook 2016-18: Frozen & Processed Chicken Industry, 2016, Krungsri Research “2016 Top Markets Report Environmental Technologies Regional Supplement”, 2016, International Trade Administration “GAIN Report – Thailand Poultry and Products Annual 2016”, 2016, USDA Foreign Agricultural Services “Poultry export outlook solidly optimistic”, 2017, Bangkok Post “Thailand’s Poultry Industry”, 2013, IPSOS Business Consulting Group “Animal Health in Thailand”, 2012, Department of Livestock and Development
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Poultry Sector in South East Asia
© 2017 by Orissa International. All rights reserved. Permission to reproduce is required
7.4 Philippines
“How big is the Philippines Poultry Industry?”, 2014, Philippine Daily Inquirer “Broiler Output to Grow 17% This Year- Ubra”, 2017, BusinessMirror “Malaysian Firm Explores Ways to Help PH Poultry Sector”, 2015, Philippine Daily Inquirer “Accredited Poultry Dressing Plants”, 2017, National Meat Inspection Service “NMIS 2014 Annual Report of Accomplishment”, 2015, National Meat Inspection Service
7.5 Vietnam
“Food Processing in Vietnam: Where is the Potential for High Value Export?”, 2014, Trung Quan Dinh “Vietnam- Agribusiness”, 2017, Export.gov “Vietnam Meat Market”, 2016, IPSOS Business Consulting “Asian Livestock: Challenges, Opportunities and the Response”, 2012, International Livestock Research Institute “Heathy Outlook for Vietnam’s Poultry and Egg Production”, 2012, WATTAgNet
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ABOUT US
ORISSA INTERNATIONAL
Orissa International is a consulting firm serving government economic development agencies and companies seeking to grow their trade, exports or investments in new markets. We are the leader in trade and foreign investment promotion within South East Asia, based on the number of American and European trade and investment promotion agencies and foreign companies who have selected our firm to assist them in doing business in this region. They have recognized that our 20 years of experience, our direct presence in key markets within the region, and our long track record of success, offers them the opportunity to enter into these markets faster and more successfully than if they were to pursue this on their own. In recent years, our track record and global network covering 40 markets have also made us the consultant of choice among South East Asian companies and trade promotion agencies looking to expand internationally. From strategy through to implementation, Orissa International can be relied on to serve you whether you are a TPO, IPA or a company.
OUR RESEARCH CAPABILITIES
Orissa International regularly undertakes market research projects in various sectors in South East Asia, for trade promotion agencies and individual companies. With 18 years’ experience in South East Asia, Orissa International’s research methodology offers a unique combination of specialist industry knowledge and in-country research expertise. Research in each country is managed by an in-country Manager, who is well schooled in our methodology. The in-country research team is in constant dialogue with industry players and opinion makers, and is able to collate the latest market trends and industry events that impact the market. Our in-country research team is managed by Senior Research Specialists, who overlook final editorial control over the publication of market research. Our on ground research teams bring fluency in local languages, physical proximity to the best sources, an ability to engage directly with local industry contacts, and an awareness of commercial opportunities in the market.
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OUR PRESENCE ACROSS SOUTH EAST ASIA
Our offices across South East Asia support our clients in both research and partner search projects. Singapore (Head Office) Orissa International Pte Ltd 1003 Bukit Merah Central #05-06 Inno Center Singapore 159836 Tel: +65 6225 8667 Indonesia Orissa International Pte Ltd Sentral Senayan 2, 16th Floor Jl. Asia Afrika No.8 Jakarta 10270, Indonesia Tel: +62 21 2924 1963 Malaysia Orissa International Sdn Bhd B1-23A-6 Soho Suites@KLCC 20 Jalan Perak 50450 Kuala Lumpur, Malaysia Tel: +603 2181 4936 Philippines Orissa International Philippines 2410 One Corporate Centre Julia Vargas corner Meralco Avenue Ortigas Center Pasig City 1600, Philippines Tel: +63 2 798 8132 Thailand Orissa International Pte Ltd 142 Two Pacific Place, 14th Floor, Suite 1406-07 Sukhumvit Road, Klongtoey Bangkok 10110, Thailand Tel: +66 9 9099 0326 Vietnam VPDD Orissa International Pte Ltd Representative Office in Ho Chi Minh City
R.22, No. 23 Phung Khac Khoan St
Dakao Ward, District 1 Ho Chi Minh City, Vietnam Tel: +84 8 3827 3904