Exporters had predicted that Thailand's processed chicken exports would grow 30 per cent to 350,000 tonnes this year from last year.

The Commerce Ministry reported that processed chicken exports grew 28 per cent to US$178.32 million (Bt6.7 billion) in the first half of the year.

To strengthen the country's competitiveness, Manoonsir has asked the government for a Bt2-billion loan to boost her company's production capacity.

She added that the money would be used to purchase new production machinery. A machine with a capacity to produce 1,000 tonnes of processed chicken per month costs about Bt200 million.

Meanwhile, the European Union's new system of import quotas will also affect Thailand's chicken exports.

Adirek Sripratak, president and chief executive of Charoen Pokphand Foods Plc, said the EU was considering the launch of a quota system on imported chicken.

"The quota system will affect the Kingdom's exports," he said, adding that the EU is Thailand's largest market for chicken products.

Although the bird flu outbreak should not affect boiled chicken exports, the EU chicken quota may reduce export growth in the future, said Adirek.

Manoonsri also expressed concern about the quota system, saying that it might cause Thailand to miss its export target of 350,000 tonnes this year.

The EU will apply its quota to processed, salted and frozen chicken.

A source from the Commerce Ministry said the EU announced the quota in June. However exporting countries have until September 15 to argue against the new rule at the World Trade Organisation.

"We don't want the EU to implement the quota system. However, if it has to be lunched, Thailand will ask the WTO to give Thailand an import quota that's higher than the country's total export volume," the source said.

Petchanet Pratruangkrai

The Nation