Thai Beef Imports' Value Increased by 74% YoY in Jan-May 2022, Slowdown Expected in Upcoming Months

Fresh Whole Beef

Frozen Bone-In Beef

Frozen Boneless Beef

Thailand

Published Jul 11, 2022

The value of Thai imports of fresh, chilled or frozen beef totaled THB 2.97 billion, equivalent to $88.8 million, in January-May 2022, increasing by 75% compared to imports in the same period of 2021. Imports from Australia continue holding the largest share, with 66% of the total. However, high beef prices are expected to cause a slowdown in beef demand in the Asian country. This might already be happening and reflecting in lower prices in the most recent months.

Imports’ value of fresh or chilled beef (HS Code 0201), which represent 26% of the total beef imports, increased by 21% YoY, while imports of frozen beef (HS Code 0202), which represent 74% of the total beef imports, increased by 105% YoY.

Imports from Australia continue holding the largest share of Thai beef imports, with 66% of the total. Imports from this origin increased by 81% YoY. Meanwhile, imports from New Zealand now represent the second largest share of Thai beef imports, with 15% of the total, overcoming Japan for this spot. Imports from New Zealand increased 158% YoY, while those from Japan, now holding the third spot, with 11% of the total, only increased by 34% YoY. Imports from the US hold the fourth spot, with 4% of the total, followed by imports from Argentina, with 3% of the total.

Source: Tridge, Thai Customs

The increase in imports’ value reflects both increased demand after the food industry continues its recovery from the pandemic and also record high prices recorded during the period.

In fact, in terms of volume, imports increased sharply, reflecting the stronger Thai beef demand. For frozen, boneless beef (HS Code 02023000001), the largest single component of overall beef imports in Thailand, the quantity imported in Jan-May 2022 totaled 10.2k mt, compared to 7.3k mt in the same period in 2021. This reflects an increase of 40%.

Meanwhile, average import prices for this product in Jan-May 2022 increased to THB 213.4/kg ($6.38/kg), compared to THB 145.4/kg ($4.74/kg) in the same period of 2021. In terms of THB, the price increase was 47% YoY, while in USD, the increase was 35% YoY. Even though over the year the THB fell against the USD, it didn’t significantly affect the volume of Thai Beef imports.

According to World Bank data, beef prices in Australia averaged $6.13/kg in Jan-May 2022, their highest level for the first five months of the year on record. Compared to the same period in 2021, this represents an increase of 25%, the sharpest one since 2010.

However, these high beef prices in Australia and New Zealand, the largest exporters of beef to Thailand, are expected to cause a slowdown in beef demand in the Asian country. This might already be happening and reflecting in lower prices in the most recent months. In Australia, prices averaged $5.98/kg in June, their lowest level since January 2022. Prices had posted a record-high peak of $6.25/kg in March. This recent decline, in addition to other factors such as increasing production, is reflecting a slowdown in global demand growth, as inflation is hitting consumers. A slower growth of beef imports in both volume and value is expected in the upcoming months.