Thailand’s Poultry Export Industry Faces Growing Challenges in Global Markets

    Thailand's poultry export sector is currently facing increasing pressure from multiple directions, including stricter import requirements, rising logistics costs, and geopolitical disruptions affecting global trade routes.

China Tightens Poultry Import Controls

    Recent developments indicate that China has significantly reduced the number of approved Thai poultry processing plants eligible for export. The number of authorized facilities has reportedly decreased from 22 plants to only 5, following stricter inspections and compliance reviews related to production standards and certification documentation. 

    As a result, Thailand's poultry exports to China are expected to decline substantially this year. Industry estimates suggest export volumes could fall from approximately 100,000 tons annually to around 40,000–50,000 tons.

    However, there are also positive signals. Thai and Chinese authorities are reportedly working toward a revised protocol agreement covering poultry meat and related products. Discussions on the signing schedule are ongoing, while Thai authorities continue coordinating corrective actions for the previously suspended plants in an effort to restore export approvals as soon as possible.

Rising Costs Driven by Geopolitical and Supply Chain Pressures

    Beyond regulatory challenges, Thailand's poultry industry is also dealing with rapidly increasing operational costs.

    Ongoing geopolitical tensions in the Middle East have disrupted regional trade flows and impacted maritime transportation routes. Shipping through the Strait of Hormuz has become increasingly uncertain, forcing some exports destined for Europe and the UK to reroute around the Cape of Good Hope. This significantly extends transit times and increases freight costs.

    At the same time, fluctuations in oil production and petrochemical supply have contributed to shortages of plastic packaging materials in some markets, creating additional pressure on food exporters dependent on reliable packaging supplies.

    Feed ingredient costs have also remained high due to drought conditions and transportation disruptions affecting global supplies of corn and soybean meal — two critical raw materials for poultry production.

    According to industry observations, these combined factors have already contributed to a decline in Thailand’s poultry export performance during the early months of the year, with further pressure expected throughout the remainder of the year.

Impact on the Global Poultry Supply Chain

    The current situation highlights the growing importance of compliance management, traceability systems, and supply chain resilience within the international poultry trade.

    For Thailand, the Chinese market remains strategically important, particularly for poultry by-products such as chicken feet and internal organs, which have strong demand in China. For Chinese buyers, Thailand has long been regarded as a mature poultry supplier with relatively advanced production, inspection, and traceability systems.

    Moving forward, the speed at which Thai processing plants complete corrective actions and regain export qualifications will play a critical role in stabilizing regional poultry supply chains and restoring normal trade volumes.

Industry Outlook

    The situation also serves as a reminder for poultry exporters worldwide that international trade is becoming increasingly dependent on:

• Food safety compliance

• Traceability and certification systems

• Stable logistics networks

• Risk diversification in export markets

• Efficient cost management

    As global poultry demand continues to grow, suppliers with stronger quality control systems and more flexible international supply chains are expected to maintain greater competitiveness in the market.