Thai Demand for Soy Protein Continues to Expand Nov. 10, 2015
Based upon actual Thai statistics, Thailand's soybean imports in MY 2014/15 were 2.411 million metric tons (MMT). As compared to 1.798 MMT in MY 2013/14, Thailand's soybean imports increased by 34 percent over the MY 2013/14's level. According to trade sources, this high growth is attributed to: 1) production of poultry, livestock, and aquaculture expanding, and 2) several feed mills have largely replaced soybean meal with full-fat soybeans in their feed rations for most of 2015. This is the result of a narrow price spread between soybeans and soybean meal. However, the U.S. market share of Thailand's soybean imports fell slightly in MY 2014/15, from 27 percent in MY 2013/14, to 25 percent.
Despite the substitution of soybeans for soybean meal, imports of soybean meal in MY 2014/15 also rose by 15 percent to 3.067 MMT from 2.665 MMT in MY 2013/14 in response to growing demand from poultry, livestock, and aquaculture sectors; and several feed mills's replacement of soybean meal for other oilseed meals especially rapeseed meal. The U.S. market share of Thailand's soybean meal imports increased in MY 2014/15 to 23 percent from only 14 percent in MY 2013/14. This came at the expense of India and Paraguay.
It is anticipated that livestock and poultry sectors will continue to grow in MY 2015/16. This will lead to an increase in domestic feed consumption but at a slower pace than in MY 2014/15.