Thailand’s leading poultry exporters, GFPT and CPF, expect to see higher volume in 2Q after Saudi Arabia grants approval for imports of Thai poultry.
Jurin Laksanawisit, Minister of Commerce of Thailand, has revealed that after the talk with Saudi Food & Drug Authority (SFDA), Riyadh will allow poultry imports from 11 establishments of Thailand, which will take effect immediately.
Currently, Saudi Arabia imports 590,000 tonnes of poultry per year, in which Brazil accounts for 70% of the exports. The remaining 30% is from Ukraine and France.
Thailand exports 912,000 tonnes of poultry worldwide in 2021, while recording 102 billion baht from exporting processed, frozen chicken.
11 establishments that Saudi Arabia approved include one establishment of GFPT Public Company Limited (SET: GFPT), one of Bangkok Ranch Public Company Limited (SET: BR) and six of Charoen Pokphand Foods Public Company Limited (SET: CPF). Each of the establishments of Sky Food Company Limited, Central Poultry Processing Company Limited and Sun Food International Company Limited has been granted access as well.
CGS-CIMB stated that according to GFPT, the first shipment normally takes around 2-3 months after the approval. As such, this should support CPF and GFPT’s broiler export volume in late 2Q-3Q22F.
The relationship between Thailand and Saudi Arabia has been revived a few months ago after the Thai government under the Prime Minister Prayut Chan-o-cha and the Ministry of Foreign Affair took the helm of diplomacy to mend ties that were cut more than three decades ago.
On March 1, 2022, Thailand also welcomed the first regular commercial flight from Saudi Arabia in 32 years.
