Meat industry sees big potential in SE Asia

Meat industry sees big potential in SE Asia

SINGAPORE (Reuter): Southeast Asians are eating more meat, especially chicken, as the region's robust economies put more money in their pockets, traders and analysts said.

"The outlook for the poultry and feedmeal sector looks very promising," an executive at an Indonesian feedmill told Reuters.

With Southeast Asian economies having expanded by 6.0 to 8.0 percent a year over the past decade, meat traders said eating habits had changed sharply and consumers were spending more on meat and less on the staple diet of rice.

Annual per capita chicken consumption in Indonesia, the most populous country in the region with 200 million people, averaged about 4.0 kg (8.8 lb) and was rising steadily, even though it paled in comparison with per capita consumption of more than 30 kg (66 lb) in the United States, said traders.

Thailand's current per capita chicken consumption of 10.5-11.0 kg (23.2-24.2 lb) was rising five to seven percent a year, compared with a rise of 13-14 kg (28.6-30.8 lb), or two percent, for pork, according to trade figures.

"Thai chicken consumption will rise sharply as its current level is low compared with 20-30 kg in Hong Kong and Japan, and over 30 kg in the United States," said Prasit Damrongchitanond, president of the Animal Feed Producers Association.

Malaysia consumed some 518.5 million tons of chicken in 1994, the latest year for which figures were available, poultry producers said.

"For chicken alone, it's 900,000 or nearly one million birds per day," said Chia Keok Keong, president of the Livestock Farmers Associations of Malaysia.

In the Philippines, per capita consumption of chicken would rise to 8.0 to 10 kg (17.6-22 lb) a year from the current 5.0 kg (11 lb), traders said.

Singaporeans eat about 3.5 million chickens a month or a little over 115,000 chickens a day, government figures show. The country imported 59,000 tons of frozen chicken in 1995, of which 22,000 tons came from the United States.

But surging consumption could lead to higher imports of corn, used by the livestock industry in the region for about 70 percent of its animal feed needs, at a time when global supplies are tight.

Budiarto Soebijanto, chairman of the Indonesia Feedmillers Association, said he expected corn imports to rise to 2.0 million tons this year from 1.5 million in 1995.

To head off the problem, the Indonesian government plans to boost domestic corn production by opening up 500,000 hectares (1.23 million acres) of land to hybrid and high-yielding local varieties.

"The government will add more than 500,000 hectares to existing corn planting areas," Agriculture Minister Sjarifudin Baharsjah said late last month.

Indonesian corn production rose by 19.7 percent to 8.2 million tons in 1995 over the previous year. The total area under corn was estimated to have expanded to 3.23 million hectares in 1995 from 3.04 million in 1994.

Thailand's maize imports are expected to rise 10.0 percent annually. Current imports reach about 300,000 tons of corn and maize in the year ending June 30.

Imports are also expected to rise in Malaysia and the Philippines.