Thai poultry returns to Chinese market after 14-year ban

China has lifted a 14-year ban on the import of Thai poultry, which was marked by the arrival of 14 containers of Thai poultry products in Yunnan.

The containers, which have a combined value of THB35m ($1.1m), were shipped from the Chiang Saen Province to Yunnan via Myanmar. Its contents come from seven of 19 chicken manufacturers that have now been granted permission to sell on the Chinese market since the ban was instigated.

Chinese authorities banned chicken imports from Thailand after a bird flu epidemic in 2004. Japan and Korea reopened their markets to Thai poultry last year. China has also barred poultry imports from France, Mexico and Texas over bird flu concerns.

Investigations are ongoing in Brazil on anti-dumping grounds after Chinese broiler meat producers complained about competition from low-cost Brazilian exports. Brazil was responsible for 85% of Chinese broiler meat chicken imports in 2016, which equated to 600,000t with a gross value of $1.2bn. This all bodes well for Thai exporters, who sold 720,000t worldwide last year valued at $2.6bn.

Thailand is in a strong position to recommence exports to China as the two nations enjoy free trade under the Association of South East Asian Nations (ASEAN)-China Free Trade Agreement, which serves around two billion consumers. Under the deal, customs duties on chicken products will be phased out during 2018.

Compared with Brazil’s highly-efficient production model, the South East Asian poultry industry reportedly has a number of issues including low productivity, and although it employs a large number of workers, the employees are paid a proportionately low wage. It is also a relatively low Gross Domestic Product (GDP) contributor.

In an attempt to correct its huge trade deficit, the US has sought to increase its meat exports to China, with the agricultural sector being the only area in which China has a trade deficit with the US.

Poultry manufacturers in Thailand and China are reportedly in recovery after avian flu created a supply shortage. In 2017, Chinese domestic broiler suppliers were hit with a grandparent breeder stock shortage.