Introduction Animal Feed industry and Livestock Performance

Introduction Animal Feed industry and Livestock Performance

Up until the mid-1990s, the Thai economy had experienced rapid growth for at least the previous 10 years. In 1995[1], for example, growth was about 8.6 percent, much the same level as has prevailed through the 1990s, but below the 10.3 percent averaged between 1985 and 1990[2] (Thailand Development Research Institute 1997). In light of its growth performance, Thailand was considered to be one of the “tiger economies” of Asia. The period of rapid growth was brought to a halt in 1997 by the sudden depreciation of the Thai Baht (Bt). Its depreciation has been generally viewed as the catalyst for the Asian financial crisis, the effects of which are still be felt through the region.

Thailand’s population in 1999 was approximately 61.66 million and average income measured as Gross Domestic Product (GDP) per person was Bt74 152 per person, or about US$1 853.8 at the exchange rate prevailing in 1999 - approximately Bt40 per US dollar. In 1985, Thailand’s population was 51.6 million and per person income was less than one third its 1999 level at Bt20 484 (US$754). The growth in average income has been accompanied by an increased disparity in income distribution. In 1981, the ratio of the income share held by the top 20 percent of income earners compared to the bottom 20 percent was 9.51. In 1992, the same measure had a value of 14.35 while in 1999 it was 14.16 (Thailand Development Research Institute 1997 and 2000). Nonetheless, by some measures poverty levels have been falling. Warr (2000) presents data based upon government estimates that show rural poverty in 1962 to have been 61 percent, 27.3 percent in 1981 and 11.15 percent in 1999. Comparable estimates for urban poverty are 38 percent, 7.5 percent and 1.82 percent. The overall incidence of poverty was 57 percent, 22.98 percent and 8.58 percent for each of 1962, 1981 and 1999, respectively. A number of development programmes, pitched at the sub-district (tambon) or village level, have been introduced to alleviate rural poverty. One such programme in 1999 allocated Bt300 million to 1 000 villages. These programmes have included a number of different agricultural industries, including rice, maize tapioca and ducks. In the cropping industries, an increase in productivity has usually been the objective of the programme while the production of eggs for sale has been the main focus of the poultry programme (The Nation 1998).


Phongpaichit and Baker (1996) argue that Japanese investment - geared towards export oriented manufacturing industries - was the key to Thailand’s high growth rate through the 1980s and 1990s. They also argue that most of the growth in the economy occurred free of government intervention. As an indication of the extent to which foreign investment in Thailand increased during the high growth period, data from the Thailand Development Research Institute (1997) show that foreign investment in 1988 was Bt27 983 million, or over three times its level the previous year in nominal terms. By 1990, foreign investment had expanded to Bt64 695 million, only to retreat to just under Bt50 000 million in 1995. In 1999, it had grown to over four times its 1990 level to Bt209 888.3 million (Thailand Development Research Institute 1997 and 2000). Besides Japan, Hong Kong and the USA have been the other major sources of foreign investment. It is unclear what the short-term future holds for the Thai economy. High levels of non-performing loans, a slowing of growth in the US economy and the depressed state of the Japanese economy are the main factors behind the concern that many observers have expressed about the economy's prospects. Over the last couple of years, the Thai government has been relaxing regulations affecting what assets can be owned by foreign firms. Under the amended Alien Business Law, there are now thirteen parts of the economy open to foreign investors. These include food and beverage selling and the sale of food and beverages through the tourism industry. Foreign investors are permitted to own up to one rai of land for commercial use and 10 rai for industrial use (Srivalo 1997). Foreign investors have in general not been permitted to own agricultural land although this regulation (in early 2002) is in the process of being modified.


Thailand has a surplus in energy feeds but a deficit in protein feeds. As is the case for cattle, which have been promoted by the government in restructuring of agricultural production systems, a shortage of hay and pasture for feeding dairy cattle in the dry season is a problem that is expected to be exacerbated as the number of dairy cattle expands (Sectoral Economics Program 1995). Rice straw, the main roughage used during the dry season, is of low quality resulting in a loss in condition by animals receiving rice straw as the sole nutrient. In the early 1980s, about 23 million tonnes of rice straw was available for animal feed (Srisunt 1991). Agro-industrial by-products are an important source of feed for ruminants. Pineapple waste silage and leaves from baby-corn canning factories have been used for cattle fattening and on dairy farms. Water scarcity is a problem for the livestock sector. Farmers do not pay for surface water hence there is no incentive for farmer to use it efficiently. The livestock industries have experienced problems obtaining water for animals to drink, for the cleaning of animals and their pens and for cooling pigs in the summer when it is hot and dry.

The Thai government reduced the import duty on soybean meal from 10 percent to 5 percent in May 1997 in a bid to help lower production costs for meat producers. It was hoped that through the lowering of these costs, that the competitiveness of Thailand's meat exporters in international markets would be improved. The government has other regulations designed to assist Thailand's soybean producers. One of these required that feedmilling companies, meat producers and vegetable oil refineries buy soybeans in the late 1990s at Bt 8.50 per kg at the factory, or at Bt 8 per kg at the farm.

In the dairy industry, most farmers use mixed feed as a concentrate. This feed is produced in Thailand by large private companies and then distributed by the dairy cooperatives. With regard to the amount of concentrate used, a general rule of thumb seems to be that farmers gives each cow an amount equal to half the quantity of milk produced per milking cow. The quality of the feed is sometimes uncertain as it is low in energy and protein. This makes it difficult for animals to recover condition after calving. With regard to roughage, systematic data are not available. However, the feeding of 30 kg to 40 kg of fresh roughage (stems and leaves) during the rainy season and unlimited amounts of rice straw during the dry season seems to be a common practice. Other roughage fed to the animals includes sugar cane tops, and the dried stems and leaves of peanuts and soybean. It is likely that roughage requirements of many farms with dairy cattle are inadequate during the dry season. The important role played by rice as a source of feed means that farmers with ruminants are likely to select rice varieties for the foliage material that is produced by the plant, not just the quantity of grain that the plant yields.

As noted earlier in this paper, producers in the pig industry follow modern western-style practices. While the commercial feedmills produce pellet sized broiler feeds and protein supplements, there is a wide range of on-farm feed produced. Kanto (1991) reports that “more than 70 percent of pig farmers in the country have adopted on-farm feed production ...” This seems to have been successful as supervision by premix companies ensures that the feeds used by these farmers are competitive with those used by farmers in the feedmill integrated system. Piglets are weaned at 28 days and require another 140 to 150 days to reach the market weight of approximately 100 to 105 kg.

In the broiler industry, birds reach an average weight of 1.8 to 2.0 kg within seven weeks with a feed conversion ratio of 2 to 2.2, depending on the feed mixture. The birds are fed commercially produced pelleted rations. In the early 1990s, this form of feed represented about 90 percent of the total feed used in the broiler industry (Kanto 1991). Different diets have to be used during hot weather as high-energy rations have led to high mortality rates.

Broken rice (a by-product of the rice milling process) and corn are the most popular base ingredients for the poultry industry and the pig industry. Rice bran makes up no more than 30 percent of pig finishing rations because of its bulk. Corn produced in tropical countries such as Thailand is susceptible to bacterial contamination when there is moisture in the atmosphere. Hence, corn has to be dried to approximately 13 percent moisture as soon as possible following harvest (Kanto 1991). Sorghum and cassava are being progressively accepted as substitutes for pig and poultry rations. The main protein supplements used in the pig and poultry industries are soybean meal and fishmeal. Peanut meal, sunflower meal and sesame seed are generally used as substitutes.

Refer: http://www.fao.org/docrep/004/AC797E/ac797e00.htm