August 11, 2014
Thailand''s livestock industry may benefit from Russia''s sanctions
Thailand''s meat, dairy and seafood products are expected to benefit most from Russia''s recent ban on American and European Union food imports, Bangkok Post reports.
"Thai exporters need to take this opportunity to ramp up their exports to Russia," said Pornsil Patchrintanakul, vice-chairman of the Thai Chamber of Commerce.
Last week, Russia had suspended food imports from a number of countries- including Norway, Canada, Australia, the United States and the European Union- as a counter measure against sanctions imposed on it by those countries over the past few weeks.
The move, which targets meat, fish, fruit, vegetable and milk products and which will last a year, is expected to affect food supplies and drive up Russian food prices. The Russian market spent nearly US$10 billion on food from those countries that had been banned.
The latest outlook published by the United Nations Food and Agriculture Organisation indicates global poultry production, driven mainly by developed countries as production in developing countries decline, is expected to grow by 1.6% to 109 million tonnes this year.
Separately, Patchrintanakul added that Thailand''s food export industry is at risk of higher production costs due mainly to the high minimum wage, labour shortage and high utility costs. Other risks include decreasing natural resources, competition for arable land and foreign non-tariff requirements such as labour and environmental standards.