Apr. 30--The swine-flu outbreaks could spur sales of chicken slightly, but not to the extent of raising Thai exports this year, a major chicken exporter predicts.

The industry is keeping an export forecast of a 5 percent contraction to 362,000 tonnes this year, due largely to recession.

Jutamas Ingpochai, the investor relations manager of GFPT, one of Thailand's leading chicken exporters, said the downturn would cut import orders from two major markets, Japan and Europe, to about 170,000 tonnes and 160,000 tonnes, respectively, from 176,000 and 174,000 tonnes last year.

But she said the recession would not affect GFPT's exports much as the company has processed chicken orders of about 1,600 to 1,700 tonnes per month, up from about 1,500 last year.

She said GFPT was confident of maintaining its strong performance this year but growth might be less than in 2008.

Strong world prices and high export volume drove GFPT's impressive operating results last year, with sales up to 10.99 billion baht from 8.12 billion, and net profit jumping sharply to 1.07 billion baht from 283 million in 2007.

The Commerce Ministry reports that Thailand's export prices of processed chicken products last year rose about 30 percent from the year before and the prices remained strong in the first quarter this year, exceeding US$4,000 per tonne.

The industry reaped about 50.12 billion baht in chicken export income last year, up 34 percent over 2007 and the ministry projects the value would drop by 12 percent to about 4.54 billion baht.

Ms Jutamas said the company's board was still committed to its investment to expand chicken farms to support a new joint venture formed in 2008.

GFPT has a 1.56-billion-baht venture, GFPT Nichirei Thailand (GPN), with Nichirei Foods Inc of Japan to process chicken for export to Japan. The plant is being built in Chon Buri with a capacity of about 18,000 tonnes of processed chicken a year. GFPT hopes to realise income from the venture next year.

GFPT shares closed yesterday at 20.10 baht, up 10 satang, in trade worth 6.74 million baht.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.