Required Report - public distribution

**Date:** 3/30/2006

**GAIN Report Number:** TH6032

TH0000

**Thailand**

**Grain and Feed**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Russ Nicely, Agricultural Attaché

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Thailand will likely have a bumper set of grain crops, particularly
rice, in MY 2006/07 with normal weather conditions, fueled by acreage
expansion resulting from the attractive intervention prices. Thai rice
exports are forecast to level off, as quotations will likely ease in
anticipation of huge government stock releases. Meanwhile, corn exports
are expected to continue on a downward trend due to the sustained
recovery of domestic feed demand from poultry production. Also, import
demand for wheat and wheat flour continues to surge in line with strong
demand for wheat-based foods and feed.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Bangkok \[TH1\]

\[TH\]

[Executive Summary 3](#executive-summary)

[1. Rice 4](#rice)

[1.1 Production 4](#production)

[1.2 Consumption 5](#consumption)

[1.3 Trade/Competition 5](#tradecompetition)

[1.4 Stock 5](#stock)

[1.5 Policy 6](#policy)

[Statistic Tables 9](#statistic-tables)

[Table 1.1: Thailand's Production, Supply and Demand for Rice
9](#table-1.1-thailands-production-supply-and-demand-for-rice)

[Table 1.2: Wholesale Prices of White Rice
10](#table-1.2-wholesale-prices-of-white-rice)

[Table 1.3: Thailand's Rice Exports
11](#table-1.3-thailands-rice-exports)

[Table 1.4: Thailand's Rice Imports
12](#table-1.4-thailands-rice-imports)

[2. Corn 13](#corn)

[2.1 Production 13](#production-1)

[2.2 Consumption 13](#consumption-1)

[2.3 Trade 13](#trade)

[2.4 Policy 14](#policy-1)

[Statistic Tables 15](#statistic-tables-1)

[Table 2.1: Thailand's Production, Supply and Demand for Corn
15](#table-2.1-thailands-production-supply-and-demand-for-corn)

[Table 2.2: Wholesale Prices of Corn
16](#table-2.2-wholesale-prices-of-corn)

[Table 2.3: Thailand's Corn Exports
17](#table-2.3-thailands-corn-exports)

[Table 2.4: Thailand's Corn Imports
18](#table-2.4-thailands-corn-imports)

[3. Wheat 19](#wheat)

[3.1 Production 19](#production-2)

[3.2 Consumption 19](#consumption-2)

[3.3 Trade 20](#trade-1)

[3.4 Policy 21](#policy-2)

[Statistic Tables 22](#statistic-tables-2)

[Table 3.1: Thailand's Production, Supply and Demand for Wheat
22](#table-3.1-thailands-production-supply-and-demand-for-wheat)

[Table 3.2: Thailand's Wheat Grain Imports
23](#table-3.2-thailands-wheat-grain-imports)

[Table 3.3: Thailand's Wheat Flour Imports
24](#table-3.3-thailands-wheat-flour-imports)

[4. Beans 25](#beans)

[4.1 Production 25](#production-3)

[4.2 Consumption 25](#consumption-3)

[4.3 Trade 25](#trade-2)

[4.4 Policy 25](#policy-3)

[Statistic Tables 26](#statistic-tables-3)

[Table 4.1: Thailand's Production, Supply and Demand for Beans
26](#table-4.1-thailands-production-supply-and-demand-for-beans)

[Table 4.2: Farmgate Prices of Mung Beans
27](#table-4.2-farmgate-prices-of-mung-beans)

[Table 4.3: Thailand's Mung Bean Exports
28](#table-4.3-thailands-mung-bean-exports)

[Table 4.4: Thailand's Mung Bean Imports
29](#table-4.4-thailands-mung-bean-imports)

#   {#section .unnumbered}

# Executive Summary

Thailand will likely have a bumper set of grain crops in MY 2006/07,
particularly rice and corn, following anticipated recoveries in harvest
areas and average yields in response to normal weather conditions. Rice
production is forecast to reach a record 18.4 million tons due to
acreage expansion following attractive government intervention prices,
and the improvement in average yield potential. Also, rice exports are
expected to level off, as the Government will inevitably release huge
stocks accumulated since MY 2004/05 to the market. This Government stock
release will put heavy downward pressure on prices. This in turn will
likely ease export quotations so that they will be able to compete with
Vietnamese rice, particularly in premium rice markets.

Despite anticipated corn production recovery, the corn exportable supply
will likely be limited by strong domestic consumption. MY 2006/07 corn
exports are forecast to drop to the same level as the average annual
exports during the poultry export boom period. Import demand for feed
corn is expected to increase further, particularly from neighboring
countries, in line with anticipated sustained recovery in poultry
production. The possible reoccurrence of HPAI outbreak will likely have
less impact on Thai poultry production systems due to more stringent
disease surveillance and control.

MY 2006/07 wheat import demand for foods and feed use will likely remain
strong in line with sustained long-term economic growth and growing
western-food diet demands, fueled by the dynamic market in bakery and
instant noodle products. In addition, flour mills continued to increase
their production capacities for both food and feed flour. However, U.S.
wheat is being more and more challenged by relatively cheaper Australian
wheat, as flour millers have to optimize their cost structure by using
more Australian wheat in medium protein content wheat flour in order to
compete with imported flour. The recovery in feed demand, fueled by the
emergent fish feed demand, is expected to accelerate import demand for
low quality wheat flour.

MY 2006/07 Mung bean production is forecast to increase slightly in
response to average yield improvement. However, import demand for beans
will likely remain strong due to growing domestic consumption of beans.
Meanwhile, bean exports are expected to continue the downward trend.

# 1. Rice

## 1.1 Production

MY 2006/07 rice production is forecast to continue a strong recovery
assuming normal weather conditions. Acreage expansion is expected in
major growing areas where drought hit the previous two years.
Anticipated normal rain distribution will likely improve the average
yield, particularly for the main crops in the north and northeast. Also,
continued attractive farm prices from the Government intervention
program reportedly encouraged farmers to invest in new machines and more
fertilizer usage.

MY 2005/06 rice production is revised upward to 18.0 million tons due
mainly to the yield improvement in the main crop. Favorable rain
conditions during the reproductive stage resulted in strong recovery of
average yields of the main crop, despite a contraction in cultivated
area due to the delay of rain during the cultivation period. However,
the quality of rice is reportedly down because of too much rain during
harvest. Meanwhile, second crop production is also revised upward in
response to the better-than-expected water levels in major reservoirs,
leading to larger harvested area.

MY 2004/05 rice production is revised upward in line with the Thai
Agricultural Ministry's latest crop survey that cut the drought-damaged
area of the main crop down to only half of the previous estimate of
around 8 million rai (1.3 million hectare). Also, officials have revised
up the rice production series since MY 2001/02 in order to reflect the
yield improvements of main crops, particularly in the northern areas.
However, the sharp increase of main crop production in this revision is
still controversial.

![](media/image2.wmf){width="7.166666666666667in"
height="1.5284722222222222in"}

![](media/image3.wmf){width="6.833333333333333in" height="1.20625in"}

## 1.2 Consumption

Rice is the staple food for Thais. Annual per capita consumption of rice
remains around 110 kilograms. The increasing trend of wheat-based
production consumption remains limited to urban areas where Western
foods are more popular.

## 1.3 Trade/Competition

Rice exports are forecast to rebound in CY 2007, as the price difference
with major competitors like Vietnam will likely narrow. The Government
will eventually release huge intervention stocks accumulated during MY
2005/06 -- MY 2006/07 in order to have enough space and cash flow for
new intervention program purchases. The government stock releases will
inevitably put downward pressure on export prices, which are expected to
make Thai rice more competitive, particularly for the premium rice
markets in the Middle East countries, and also in the inferior rice
markets in African countries.

In CY 2006, rice exports are unlikely to recover from earlier setbacks
due to continued intense price competition with Vietnamese white rice
and Indian parboiled rice. Presently, Vietnamese white rice is around
US\$ 40-50/MT cheaper than Thai white rice, as compared to the customary
difference of around US\$ 20-30/MT. The bigger difference in prices
mainly reflected tighter exportable supplies, which were caused by the
aggressive government intervention program. Exporters faced difficulties
in sourcing white rice and fragrant rice domestically. However, import
demand for Thai premium white rice from Iran and Iraq will likely remain
strong, as supplies of Vietnamese premium rice are limited.

As for CY 2005, Thai rice exports declined sharply to 7.3 million tons
in line with white rice exports. The Thai white rice market in African
countries, accounting for about 40 percent of total white rice exports,
was lost to Vietnamese rice, some US\$ 20-30/MT cheaper. This big
difference in prices worsened even the superior quality white rice
market in the Middle East, particularly Iran. Also, parboiled rice
exports, accounting for about 25 percent of total rice exports, dropped
sharply to 1.9 million tons, compared to 2.2 million tons in the
previous year, due to strong competition from Indian parboiled rice.
Meanwhile, fragrant rice exports continued to grow to 2.3 million tons,
up slightly from the previous year, despite strong competition from
another rice strain, Pathumthani fragrant rice, about US\$ 100/MT
cheaper. Import demand for Thai Fragrant rice in the top three markets
(Senegal, the United States, and China) is subdued in light of the
emergent Pathumthani fragrant demand.

## 1.4 Stock

MY 2006/07 rice stocks will likely surge to a record level in
anticipation of a bumper crop together with huge carry-over stock of the
government intervention program. This stock will put downward pressure
on domestic prices, as the Government will eventually release the stocks
to the market in order to have enough space for new intervention program
purchases.

Current outstanding rice stocks of the government intervention program
surged to around 4.5 million tons, of which around 1.0 million tons are
from MY 2004/05 program, mostly fragrant rice, and 3.4 million tons are
current crop (MY 2005/06 crop), including 1.6 million tons of white rice
and 1.7 million tons of fragrant rice. The recent government stock
tender (Feb. 2006) for the rest of the white rice from the MY 2004/05
crop (around 700,000 tons, mostly 5% grade white rice) awarded almost
all of the amount to President Agri Trading at prices higher than market
prices, as in the previous two years. All of this rice is required to be
exported.

## 1.5 Policy

The Government is expected to stabilize domestic prices for paddy
through the intervention program. However, further increases in the
intervention prices will likely be limited by the government budget and
the downward trend of market prices.

The intervention program was more aggressive in MY 2005/06, as
intervention prices were 300-500 baht/ton (roughly US\$ 8-13/MT) higher
over the previous year's levels for the main crop. As of the end of the
MY 2005/06 main crop intervention program (Nov. 1, 2005 -- Feb. 28,
2006), the Government bought a record 5.2 million tons of paddy, of
which 2.6 million tons were fragrant rice, and 2.5 million tons were
white rice. The number of farmers participating in this program
increased significantly, in response to higher intervention prices. In
addition, the intervention prices for the second crop, running Mar. 16
-- Jul. 31, 2006, were the same as those of the main crop, but still
higher than the previous year's levels by 400 bath/ton (roughly US\$
10/MT) for all grades of rice.

Paddy Price Under Price Support Program (Baht/Metric Ton)

![](media/image5.wmf){width="5.990972222222222in"
height="5.554166666666666in"}

Paddy Mortgage Scheme

![](media/image6.wmf){width="5.533333333333333in"
height="3.604861111111111in"}

![](media/image7.wmf){width="5.648611111111111in"
height="3.1881944444444446in"}WTO Agreement on Market Access

## Statistic Tables

### Table 1.1: Thailand's Production, Supply and Demand for Rice

+------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**    |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Country**      | **    |       |       |       |       |       |
|                  | Thail |       |       |       |       |       |
|                  | and** |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**    | **    |       |       |       | (1000 |       |
|                  | Rice, |       |       |       | HA)   |       |
|                  | Mil   |       |       |       | (1000 |       |
|                  | led** |       |       |       | MT)   |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | 2004  |       | 2005  |       | 2006  |       |
|                  |       |       |       |       |       |       |
|                  | Re    |       | Est   |       | For   |       |
|                  | vised |       | imate |       | ecast |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                  | Off   | Estim | Off   | Estim | Off   | Estim |
|                  | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                  | \[    | New\] | \[    | New\] | \[    | New\] |
|                  | Old\] |       | Old\] |       | Old\] |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Market Year    | 01    |       | 01    |       | 01    |       |
| Begin**          | /2005 |       | /2006 |       | /2007 |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested   | 9815  | 9995  | 10165 | 10215 | 0     | 10340 |
+------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks | 1706  | 1703  | 2022  | 2279  | 3432  | 3779  |
+------------------+-------+-------+-------+-------+-------+-------+
| Milled           | 17070 | 17360 | 17900 | 18000 | 0     | 18350 |
| Production       |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Rough Production | 25864 | 26303 | 27121 | 27273 | 0     | 27803 |
+------------------+-------+-------+-------+-------+-------+-------+
| MILLING RATE     | 6600  | 6600  | 6600  | 6600  | 0     | 6600  |
| (.9999)          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Imports    | 0     | 0     | 0     | 0     | 0     | 0     |
+------------------+-------+-------+-------+-------+-------+-------+
| Jan-Dec Imports  | 0     | 0     | 0     | 0     | 0     | 0     |
+------------------+-------+-------+-------+-------+-------+-------+
| Jan-Dec Import   | 0     | 0     | 0     | 0     | 0     | 0     |
| U.S.             |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY     | 18776 | 19063 | 19922 | 20279 | 3432  | 22129 |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Exports    | 7274  | 7304  | 7000  | 7000  | 0     | 7600  |
+------------------+-------+-------+-------+-------+-------+-------+
| Jan-Dec Exports  | 7274  | 7304  | 7000  | 7000  | 0     | 7600  |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.       | 9480  | 9480  | 9490  | 9500  | 0     | 9570  |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks    | 2022  | 2279  | 3432  | 3779  | 0     | 4959  |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL            | 18776 | 19063 | 19922 | 20279 | 0     | 22129 |
| DISTRIBUTION     |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+

### Table 1.2: Wholesale Prices of White Rice

  ------------------------- --------------- --------------- ---------------
  **Prices Table**                                          

  **Country**               Thailand                        

  **Commodity**             Rice, Milled                    

  Prices in                 Baht            per uom         Kilogram

                                                            

  Year                      2004            2005            \% Change

  Jan                       8.09            10.69           32%

  Feb                       8.15            10.75           32%

  Mar                       9.04            11.01           22%

  Apr                       9.01            11.35           26%

  May                       8.96            11.27           26%

  Jun                       8.96            11.22           25%

  Jul                       9.1             11.1            22%

  Aug                       9.5             11.25           18%

  Sep                       9.3             11.59           25%

  Oct                       9.67            11.33           17%

  Nov                       10.05           11.05           10%

  Dec                       10.46           11.13           6%

                                                            

  Exchange Rate             38.99           Local           
                                            Currency/US \$  

  Date of Quote             3/2/2006        MM/DD/YYYY      
  ------------------------- --------------- --------------- ---------------

### Table 1.3: Thailand's Rice Exports

+--------------------+-------------+--------------------+-------------+
| **Export Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Rice,       |                    |             |
|                    | Milled      |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Tons |
+--------------------+-------------+--------------------+-------------+
| Exports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 367677      | U.S.               | 346020      |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Nigeria            | 839426      | Nigeria            | 601969      |
+--------------------+-------------+--------------------+-------------+
| Senegal            | 569792      | Senegal            | 494649      |
+--------------------+-------------+--------------------+-------------+
| Indonesia          | 155739      | Indonesia          | 119792      |
+--------------------+-------------+--------------------+-------------+
| Iran               | 610582      | Iran               | 160481      |
+--------------------+-------------+--------------------+-------------+
| Cote D\'Ivoire     | 398835      | Cote D\'Ivoire     | 298301      |
+--------------------+-------------+--------------------+-------------+
| South Africa       | 814271      | South Africa       | 455083      |
+--------------------+-------------+--------------------+-------------+
| China              | 698091      | China              | 490134      |
+--------------------+-------------+--------------------+-------------+
| Hong Kong          | 287432      | Hong Kong          | 303262      |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 457378      | Malaysia           | 417381      |
+--------------------+-------------+--------------------+-------------+
| Singapore          | 205765      | Singapore          | 172916      |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 5037311     |                    | 3513968     |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 4735236     |                    | 3444358     |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 10140224    |                    | 7304346     |
+--------------------+-------------+--------------------+-------------+

### Table 1.4: Thailand's Rice Imports

+--------------------+-------------+--------------------+-------------+
| **Import Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Commodity**      | ####### R   |                    |             |
|                    | ice, Milled |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Imports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 19          | U.S.               | 0           |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| China              | 0           | China              | 22          |
+--------------------+-------------+--------------------+-------------+
| Australia          | 473         | Australia          | 323         |
+--------------------+-------------+--------------------+-------------+
| Pakistan           | 77          | Pakistan           | 138         |
+--------------------+-------------+--------------------+-------------+
| Japan              | 15          | Japan              | 8           |
+--------------------+-------------+--------------------+-------------+
| India              | 60          | India              | 178         |
+--------------------+-------------+--------------------+-------------+
| Italy              | 14          | Italy              | 14          |
+--------------------+-------------+--------------------+-------------+
| Laos               | 422         | Laos               | 859         |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 1061        |                    | 1542        |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 20          |                    | 930         |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 1100        |                    | 2472        |
+--------------------+-------------+--------------------+-------------+

# 2. Corn

## 2.1 Production

MY 2006/07 corn production is forecast to increase slightly in
anticipation of favorable weather conditions. Planted area will likely
remain unchanged from the previous year, as the current farmgate prices
are quite stable. However, harvested area and average yield are expected
to recover from the previous year, given normal rain distribution.

MY 2005/06 corn production is revised downward slightly because growing
areas in the Northeast, accounting for about 20 percent of total
production, were adversely affected by poor distribution of rain which
dampened the average yield of main crop corn. Meanwhile, second crop
production increased slightly due to average yield improvement from the
favorable weather conditions.

## 2.2 Consumption

MY 2006/07 feed demand will likely continue to grow to around 10-11
million tons in line with a sustained recovery in livestock production,
particularly for poultry, after the outbreak of Highly Pathogenic Avian
Influenza (HPAI) in 2004. Most Thai broiler entrepreneurs reportedly
expect a strong recovery in poultry production over the medium term due
to no disease threats to commercial poultry farms and good prospects for
domestic consumption and cooked poultry exports. Feed corn consumption
is forecast to grow by 5-6 percent from the previous year.

MY 2005/06 feed corn consumption is revised upward to 4.0 million tons
due mainly to the strong recovery in poultry production. The
reoccurrence of HPAI for the third time in July 2005 was less serious
than the earlier outbreaks (January - May 2004 and July 2004 -- April
2005) due to more stringent disease surveillance and control.

## 2.3 Trade

MY 2006/07 corn exports are forecast to continue their downward trend
due to limited exportable supplies resulting from the recovery in
domestic demand for feed corn. Corn exports are expected to drop back to
the average annual exports around 150,000 tons, during the poultry
export boom period, despite the continued import suspensions on uncooked
meat by importing countries.

MY 2005/06 corn exports will likely shrink to 170,000 tons, down
significantly from the previous year. The Republic of Korea stopped
buying Thai corn due to limited supplies of premium corn. In addition,
major importing countries, Malaysia in particular, shifted to relatively
cheaper Cambodian corn. Chinese-Malaysian grain traders reportedly
invested in grain storage facilities in Cambodia and exported Cambodian
corn directly to Malaysia. However, Indonesia remains a dominant market
for Thai corn due to freight cost advantages. Moreover, Argentine corn
prices are experiencing upward pressures due to limited exportable
supplies resulting from unfavorable crops and strong domestic feed
demand. Prices of Argentine corn recently surged to be close to U.S.
Gulf levels, as compared to the customary difference of around U.S.\$
10-12/MT. Meanwhile, Thai corn is quoted at around U.S.\$ 132-134/MT
FOB, which is quite competitive even with Chinese corn. This also
resulted in a sharp increase in Thai corn exports to Vietnam in CY 2005.
As for Thai import demand for corn, corn imports in MY 2006/07 will
likely continue to increase. Most corn will come from neighboring
countries, particularly from Laos and Cambodia, as these countries enjoy
a duty-free privilege under the Joint Economic Cooperation Strategy
Program. Meanwhile, MY 2005/06 corn imported from Cambodia is expected
to be limited by tight exportable supplies resulting from continued
unfavorable crops.

## 2.4 Policy

The Government still utilizes a mortgage program to stabilize domestic
prices during the harvest period. The MY 2005/06 program, running
September 1 -- December 31, 2005, bought 116,744 metric tons of corn, up
significantly from the previous year's levels of 42,854 metric tons, as
the Government set higher loan rates. The loan rates were set at 4.75
baht/kg (roughly US\$ 119/MT) during September -- November, and up to 5
baht/kg (roughly US\$ 125/MT), as compared to 4.4 baht/kg (roughly US\$
110/MT) for 14.5% moisture content.

Under corn import policy, following the WTO agreement, the import quota
in 2006 is 54,700 metric tons at a 20 percent in-quota tariff rate. The
shipments will be allowed only during the period of March 1 -- June 30,
2006 when domestic production is minimal. Meanwhile, out-of quota
imports are subject to a 73 percent tariff rate with a surcharge of 180
baht/ton. On non-WTO countries, the tariff will be at 2.75 baht/kg, with
a special charge of 10.22 percent (sum of both of these charges is close
to 73 percent), plus a surcharge of 180 baht/kg. However, according to
the Joint Economic Cooperation Strategy, for cooperation between
Cambodia, Laos, Burma, and Thailand, imports of feed corn from these
countries by the other countries are duty free without any quota
throughout the year. In addition, imports from FTA countries are subject
to a 5 percent tariff rate without any surcharge and quota.

## Statistic Tables

### Table 2.1: Thailand's Production, Supply and Demand for Corn

+------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**    |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Country**      | **    |       |       |       |       |       |
|                  | Thail |       |       |       |       |       |
|                  | and** |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**    | **C   |       |       |       | (1000 |       |
|                  | orn** |       |       |       | HA)   |       |
|                  |       |       |       |       | (1000 |       |
|                  |       |       |       |       | MT)   |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | 2004  |       | 2005  |       | 2006  |       |
|                  |       |       |       |       |       |       |
|                  | Re    |       | Est   |       | For   |       |
|                  | vised |       | imate |       | ecast |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                  | Off   | Estim | Off   | Estim | Off   | Estim |
|                  | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                  | \[    | New\] | \[    | New\] | \[    | New\] |
|                  | Old\] |       | Old\] |       | Old\] |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Market Year    | 07    |       | 07    |       | 07    |       |
| Begin**          | /2004 |       | /2005 |       | /2006 |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested   | 1130  | 1128  | 1130  | 1110  | 0     | 1130  |
+------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks | 263   | 176   | 214   | 333   | 154   | 223   |
+------------------+-------+-------+-------+-------+-------+-------+
| Production       | 4000  | 4210  | 4140  | 4100  | 0     | 4250  |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 10    | 97    | 50    | 60    | 0     | 80    |
| Imports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Oct-Sep Imports  | 10    | 86    | 50    | 60    | 0     | 80    |
+------------------+-------+-------+-------+-------+-------+-------+
| Oct-Sep Import   | 0     | 0     | 0     | 0     | 0     | 0     |
| U.S.             |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY     | 4273  | 4483  | 4404  | 4493  | 154   | 4553  |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 459   | 450   | 250   | 170   | 0     | 150   |
| Exports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Oct-Sep Exports  | 396   | 387   | 250   | 170   | 0     | 150   |
+------------------+-------+-------+-------+-------+-------+-------+
| Feed Dom.        | 3500  | 3600  | 3900  | 4000  | 0     | 4100  |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.       | 3600  | 3700  | 4000  | 4100  | 0     | 4200  |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks    | 214   | 333   | 154   | 223   | 0     | 203   |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL            | 4273  | 4483  | 4404  | 4493  | 0     | 4553  |
| DISTRIBUTION     |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+

### Table 2.2: Wholesale Prices of Corn

  ------------------------- --------------- --------------- ---------------
  **Prices Table**                                          

  **Country**               Thailand                        

  **Commodity**             Corn                            

  Prices in                 Baht            per uom         Metric Ton

                                                            

  Year                      2004            2005            \% Change

  Jan                       4875            5444            12%

  Feb                       4681            5496            17%

  Mar                       5340            5487            3%

  Apr                       7643            5485            -28%

  May                       7133            5452            -24%

  Jun                       7153            5443            -24%

  Jul                       \-              5560            #VALUE!

  Aug                       4911            5469            11%

  Sep                       4585            5393            18%

  Oct                       4741            5526            17%

  Nov                       5073            5552            9%

  Dec                       5381            5397            0%

                                                            

  Exchange Rate             38.99           Local           
                                            Currency/US \$  

  Date of Quote             3/2/2006        MM/DD/YYYY      
  ------------------------- --------------- --------------- ---------------

### Table 2.3: Thailand's Corn Exports

+--------------------+-------------+--------------------+-------------+
| **Export Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Corn        |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Exports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 12          | U.S.               | 12          |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 346185      | Malaysia           | 19655       |
+--------------------+-------------+--------------------+-------------+
| Taiwan             | 49709       | Taiwan             | 4228        |
+--------------------+-------------+--------------------+-------------+
| Singapore          | 6800        | Singapore          | 254         |
+--------------------+-------------+--------------------+-------------+
| Indonesia          | 206759      | Indonesia          | 18052       |
+--------------------+-------------+--------------------+-------------+
| Burma              | 485         | Burma              | 295         |
+--------------------+-------------+--------------------+-------------+
| Hong Kong          | 14830       | Hong Kong          | 1683        |
+--------------------+-------------+--------------------+-------------+
| Japan              | 1310        | Japan              | 1454        |
+--------------------+-------------+--------------------+-------------+
| South Korea        | 263475      | South Korea        | 0           |
+--------------------+-------------+--------------------+-------------+
| Vietnam            | 53312       | Vietnam            | 15209       |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 942865      |                    | 60830       |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 221         |                    | 2364        |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 943098      |                    | 63206       |
+--------------------+-------------+--------------------+-------------+

### Table 2.4: Thailand's Corn Imports

+--------------------+-------------+--------------------+-------------+
| **Import Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Corn        |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Imports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 0           | U.S.               | 0           |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Lao Rep.           | 31378       | Lao Rep.           | 39313       |
+--------------------+-------------+--------------------+-------------+
| Cambodia           | 44350       | Cambodia           | 19551       |
+--------------------+-------------+--------------------+-------------+
| Burma              | 25          | Burma              | 15          |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 75753       |                    | 58879       |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 0           |                    |             |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 75753       |                    | 58879       |
+--------------------+-------------+--------------------+-------------+

# 3. Wheat

## 3.1 Production

Wheat production remains insignificant, as acreage expansion is
constrained by climatic conditions, limited seed development, and
unattractive returns. Cultivation is limited to only around 550
hectares, producing about 500-600 metric tons. Major planted areas are
in the northern region, particularly Maehongson province, which has
about 80 percent of the total planted area. The average yield is
approximately 150-180 kg/rai (0.9 -- 1.1 tons/hectare)

## 3.2 Consumption

MY 2006/07 wheat consumption is forecast to continue its upward trend in
line with sustained economic growth. Demand for wheat-based foods will
likely be driven by anticipated higher incomes and growing urbanization
together with a healthy hospitality business. Current annual per capita
consumption of wheat remains low at around 16 kilograms, accounting for
only around 10 percent of per capita consumption of rice, which is the
Thai staple food, eaten three times a day. However, per capita
consumption of wheat trends upward in anticipation of sustained
long-term economic growth and growing western-food diet demand, fueled
by dynamic markets in bakery and instant noodle products. The markets
for these products, accounting for about 60-70 percent of total wheat
consumption, are expected to continue their double-digit growth. In
addition, bakery goods and instant noodle consumption will likely surge
in the first half of MY 2006/07, following the extra light meal
customarily taken during the World Cup game live broadcasts on TV at
around midnight. Also, demand for wheat-based feed is forecast to grow
further in response to strong recovery in shrimp farms, following strong
export potentials, particularly to the U.S. In addition, two new flour
mills reportedly increased their production capacities by around 30
percent in anticipation of strong wheat flour demand, particularly in
feed industries.

MY 2005/06 wheat consumption is revised upward, reflecting strong demand
for feed consumption that accounted for about 30 percent of total wheat
consumption. Feed wheat demand will likely surge in response to the
recovery in shrimp farms and sharp increases in fish farms. Thai frozen
shrimp exports are expected to continue double digit growth, as import
demand from U.S. remains strong due to insufficient domestic supplies
resulting from Hurricane Katrina damaged shrimp farms in the first half
of the year. Also, the U.S. anti-dumping duty is still comparatively low
for Thai shrimp at 5.29-6.82 percent. However, demand for shrimp feed is
reportedly not so strong as a sharp increase in shrimp production comes
due to improvements in shrimp farm productivity, following the
production shift from black tiger shrimp to white shrimp. Presently,
white shrimp production accounts for about 95 percent of total shrimp
production. Meanwhile, fish feed is expected to grow considerably in
response to anticipated acreage expansion in fish farms resulting from
increasing domestic fish consumption since the HPAI outbreak, as fish is
relatively cheaper than pork meat. However, the specification for wheat
used for fish feed is not as high as that of shrimp feed, leading to
greater opportunities for relatively cheaper imported wheat flour whose
quality is lower than the domestically produced wheat flour.

The wholesale prices of local wheat flour declined by around 10 percent,
particularly for premium bread flour, in response to a reduction in the
price of high protein content flours and strong competition from
relatively cheaper imported flour resulting from a reduction in tariff
rate on wheat flour. In addition, flour mills lowered the premium flour
specifications by using more lower protein content wheat, 14-14.5
percent protein content DNS instead of 15 percent protein content wheat
due to a big difference in imported prices of around US\$ 15-20/MT. Also
the prices of all-purpose flour, including noodle flour, continued to
decline from the previous year due to strong competition from relatively
cheaper imported flour from China and Vietnam. However, prices of cake
flour and premium all-purpose flour remained unchanged because these
flours occupy niche markets, which are so sensitive to quality that
imported flour cannot compete with local flour. In addition, the prices
of biscuit flour remained steady because the prices are reportedly close
to those of imported flour.

![](media/image8.wmf){width="5.18125in" height="1.7770833333333333in"}

## 3.3 Trade

MY 2006/07 wheat imports are forecast to continue the upward trend in
line with strong wheat demand for food and feed consumption. The U.S. is
still a major supplier of high protein content wheat, which is usually
used to produce premium bread flour, due to limited supplies of high
protein wheat of other competitors, Australia in particular. However,
Australian wheat will likely gain more market share in medium protein
content, particularly in instant noodle flour industries, as it is
cheaper by U.S.\$ 3-4/MT, following its bumper crop and the free trade
agreement that brings Australian wheat duty free. Also, Australian wheat
currently has a transportation cost advantage for Thai flour millers
because major Thai feed mills regularly import Australian wheat on a
monthly basis of around 20,000 metric tons, which easily manages
combined cargoes for the 30,000 ton-weight vessels. Current import
prices of high protein content wheat remained unchanged at high levels,
around US\$ 235/MT for 14.5 % protein content DNS. However, those of low
protein content wheat were under downward pressure due to anticipated
favorable crops of the major suppliers, including both Australia and the
U.S.

MY 2005/06 wheat imports are revised upward due to a surge in wheat
demand for food and feed. In the first half of MY 2005/06 wheat imports
reached a record 647,639 metric tons, up around 40 percent from the same
period of the previous year. Imports of U.S. wheat also surged to a
record 348,500 metric tons, up around 50 percent from the previous year.
In addition, imports of Australian wheat continued to increase. The
increase was also partly due to the result of the expansion of
production capacity of the recent two new flour mills to around 800-900
tons/day, as compared to current capacity of around 500-600 tons/day.
Moreover, one older flour mill, which is a major wheat flour supplier
for the Thai dominant instant noodle manufacturer, also increased
production capacity by 60 percent in line with the growing instant
noodle demand.

As for wheat flour, imports will likely remain strong following the
recovery in feed demand on shrimp and fish farms and growing instant
noodle consumption. Also, prices of imported flour are attractive due to
a low tariff rate of 5 percent, as compared to 25.5 percent in the past.
In CY 2005, imports of wheat flour from Vietnam and Australia continued
to increase considerably. However, local flour millers currently can
compete with imported flour by lowering prices but margins reportedly
were minimal.

## 3.4 Policy

The tariff rate on imported wheat is at 0.1 baht/kg (roughly U.S.\$
2.5/MT). Meanwhile, the tariff rate on wheat flour is at 5 percent (0.5
baht/kg). Local flour millers are now less concerned with the current
tariff structure because they now can compete with imported flour due to
their restructured cost. However, this change will likely dampen market
potential for the U.S. wheat, as the mills use more relatively cheaper
Australian wheat to blend with the U.S. wheat, particularly for medium
protein flours. Meanwhile, premium flour is not affected by the tariff
reduction for imported flour or even by the duty-free Australian wheat
due to limited supplies of imported premium flour and Australian wheat.

## Statistic Tables

### Table 3.1: Thailand's Production, Supply and Demand for Wheat

+------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**    |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Country**      | **    |       |       |       |       |       |
|                  | Thail |       |       |       |       |       |
|                  | and** |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**    | **Wh  |       |       |       | (1000 |       |
|                  | eat** |       |       |       | HA)   |       |
|                  |       |       |       |       | (1000 |       |
|                  |       |       |       |       | MT)   |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | 2004  |       | 2005  |       | 2006  |       |
|                  |       |       |       |       |       |       |
|                  | Re    |       | Est   |       | For   |       |
|                  | vised |       | imate |       | ecast |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                  | Off   | Estim | Off   | Estim | Off   | Estim |
|                  | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                  | \[    | New\] | \[    | New\] | \[    | New\] |
|                  | Old\] |       | Old\] |       | Old\] |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Market Year    | 07    |       | 07    |       | 07    |       |
| Begin**          | /2004 |       | /2005 |       | /2006 |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested   | 0     | 0     | 0     | 0     | 0     | 0     |
+------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks | 468   | 566   | 469   | 640   | 439   | 645   |
+------------------+-------+-------+-------+-------+-------+-------+
| Production       | 0     | 0     | 0     | 0     | 0     | 0     |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 1081  | 1086  | 1100  | 1120  | 0     | 1190  |
| Imports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Imports  | 1081  | 1086  | 1100  | 1120  | 0     | 1190  |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Import   | 415   | 428   | 0     | 520   | 0     | 540   |
| U.S.             |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY     | 1549  | 1652  | 1569  | 1760  | 439   | 1835  |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 80    | 12    | 80    | 15    | 0     | 20    |
| Exports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Exports  | 80    | 12    | 80    | 15    | 0     | 20    |
+------------------+-------+-------+-------+-------+-------+-------+
| Feed Dom.        | 260   | 270   | 280   | 300   | 0     | 320   |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.       | 1000  | 1000  | 1050  | 1100  | 0     | 1210  |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks    | 469   | 640   | 439   | 645   | 0     | 605   |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL            | 1549  | 1652  | 1569  | 1760  | 0     | 1835  |
| DISTRIBUTION     |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+

### Table 3.2: Thailand's Wheat Grain Imports

+--------------------+-------------+--------------------+-------------+
| **Import Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Wheat       |                    |             |
|                    | (Grain)     |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Imports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 425771      | U.S.               | 551955      |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Australia          | 352463      | Australia          | 573214      |
+--------------------+-------------+--------------------+-------------+
| Canada             | 163249      | Canada             | 23071       |
+--------------------+-------------+--------------------+-------------+
| India              | 168         | India              | 122         |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 515880      |                    | 596407      |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 1134        |                    | 1           |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 942785      |                    | 1148363     |
+--------------------+-------------+--------------------+-------------+

### Table 3.3: Thailand's Wheat Flour Imports

+--------------------+-------------+--------------------+-------------+
| **Import Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Wheat       |                    |             |
|                    | (Flour)     |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Imports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 2           | U.S.               | 3           |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Singapore          | 10988       | Singapore          | 9269        |
+--------------------+-------------+--------------------+-------------+
| Japan              | 17978       | Japan              | 8692        |
+--------------------+-------------+--------------------+-------------+
| Australia          | 5429        | Australia          | 6971        |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 4510        | Malaysia           | 3402        |
+--------------------+-------------+--------------------+-------------+
| Belgium            | 1876        | Belgium            | 1428        |
+--------------------+-------------+--------------------+-------------+
| Vietnam            | 903         | Vietnam            | 11969       |
+--------------------+-------------+--------------------+-------------+
| China              | 12967       | China              | 11914       |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 54651       |                    | 53645       |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 2671        |                    | 2734        |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 57324       |                    | 56382       |
+--------------------+-------------+--------------------+-------------+

# 4. Beans

## 4.1 Production

MY 2006 beans and pulse production is forecast to increase slightly in
anticipation of favorable weather conditions. The increase reflects
mainly the improvement in average yields. Meanwhile, the acreage
expansion will likely be limited by unattractive returns as compared to
other crops like tapioca and sugarcane, despite the current high
farmgate prices of around 17.24 baht/kg, up 10 percent from the previous
year. In MY 2005, beans and pulse production is revised upward slightly
due mainly to better-than-expected weather conditions.

## 4.2 Consumption

MY 2006 beans and pulse consumption is forecast to continue the upward
trend. Most Mung beans are raw material for vermicelli, accounting for
about half of total Mung bean use. The vermicelli by-products are
normally used as feedstuffs. Also, Mung beans are used to produce other
kinds of foodstuffs, such as bean flour, bean sprouts and cake, and
various confectionary items. However, Mung beans prices are considered
to be too high to use directly for feedstuffs.

Current wholesale prices of Mung beans increased significantly to 24.5
baht/kg (roughly U.S.\$ 613/MT). Also, the average wholesale prices of
Mung beans in CY 2005 surged to a record 22 baht/kg. (roughly U.S.\$
550/MT), as compared to 16 baht/kg. (roughly U.S.\$ 400/MT) in the
previous year. The sharp increase mainly reflects the tight supply
situation resulting from drought.

## 4.3 Trade

MY 2006 beans and pulse exports are forecast to continue the downward
trend in response to limited exportable supplies. Also, Thai Mung beans
prices cannot compete with major competitors like Burma. In MY 2005,
Mung bean exports will likely continue to decline, even those to nearby
countries like Indonesia, Malaysia, and Hong Kong. Burma is expected to
gain more market share in these countries, as Thai Mung bean export
prices remain at high levels.

As for Mung bean imports, import demand is estimated to grow further due
to the shortfall in domestic production. In MY 2005, Mung bean imports
will likely continue to surge in response to insufficient domestic
supplies. Almost all imports are from Burma.

## 4.4 Policy

Mung beans are considered to be a minor crop. The Government does not
offer any intervention program. The crop is encouraged by the Government
as a second crop to replace paddy.

## Statistic Tables

### Table 4.1: Thailand's Production, Supply and Demand for Beans

+------------------+-------+-------+-------+-------+-------+-------+
| **PSD Table**    |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Country**      | **    |       |       |       |       |       |
|                  | Thail |       |       |       |       |       |
|                  | and** |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**    | **Be  |       |       |       | (1000 |       |
|                  | ans** |       |       |       | HA)   |       |
|                  |       |       |       |       | (1000 |       |
|                  |       |       |       |       | MT)   |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | 2004  |       | 2005  |       | 2006  |       |
|                  |       |       |       |       |       |       |
|                  | Re    |       | Est   |       | For   |       |
|                  | vised |       | imate |       | ecast |       |
+------------------+-------+-------+-------+-------+-------+-------+
|                  | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                  | Off   | Estim | Off   | Estim | Off   | Estim |
|                  | icial | ate\[ | icial | ate\[ | icial | ate\[ |
|                  | \[    | New\] | \[    | New\] | \[    | New\] |
|                  | Old\] |       | Old\] |       | Old\] |       |
+------------------+-------+-------+-------+-------+-------+-------+
| **Market Year    | 01    |       | 01    |       | 01    |       |
| Begin**          | /2004 |       | /2005 |       | /2006 |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested   | 0     | 285   | 0     | 280   | 0     | 285   |
+------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks | 0     | 18    | 0     | 15    | 0     | 7     |
+------------------+-------+-------+-------+-------+-------+-------+
| Production       | 0     | 243   | 0     | 245   | 0     | 255   |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 0     | 6     | 0     | 8     | 0     | 12    |
| Imports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Imports  | 0     | 7     | 0     | 10    | 0     | 13    |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Import   | 0     | 0     | 0     | 0     | 0     | 0     |
| U.S.             |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY     | 0     | 267   | 0     | 268   | 0     | 274   |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Mkt. Yr.   | 0     | 12    | 0     | 11    | 0     | 10    |
| Exports          |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Jul-Jun Exports  | 0     | 12    | 0     | 9     | 0     | 8     |
+------------------+-------+-------+-------+-------+-------+-------+
| Feed Dom.        | 0     | 4     | 0     | 5     | 0     | 6     |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.       | 0     | 240   | 0     | 250   | 0     | 260   |
| Consumption      |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks    | 0     | 15    | 0     | 7     | 0     | 4     |
+------------------+-------+-------+-------+-------+-------+-------+
| TOTAL            | 0     | 267   | 0     | 268   | 0     | 274   |
| DISTRIBUTION     |       |       |       |       |       |       |
+------------------+-------+-------+-------+-------+-------+-------+

### Table 4.2: Farmgate Prices of Mung Beans

  ------------------------- --------------- --------------- ---------------
  **Prices Table**                                          

  **Country**               Thailand                        

  **Commodity**             Beans                           

  Prices in                 Baht            per uom         Metric Ton

                                                            

  Year                      2004            2005            \% Change

  Jan                       13440           15620           16%

  Feb                       15010           16290           9%

  Mar                       14830           18920           28%

  Apr                       15460           19610           27%

  May                       15460           \-              #VALUE!

  Jun                       13280           \-              #VALUE!

  Jul                       13750           16000           16%

  Aug                       12740           18060           42%

  Sep                       12490           17470           40%

  Oct                       13220           19190           45%

  Nov                       14540           18000           24%

  Dec                       15160           15670           3%

                                                            

  Exchange Rate             38.99           Local           
                                            Currency/US \$  

  Date of Quote             3/2/2006        MM/DD/YYYY      
  ------------------------- --------------- --------------- ---------------

### Table 4.3: Thailand's Mung Bean Exports

+--------------------+-------------+--------------------+-------------+
| **Export Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Beans       |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Exports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 2170        | U.S.               | 2089        |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Cambodia           | 1           | Cambodia           | 0           |
+--------------------+-------------+--------------------+-------------+
| Hong Kong          | 1573        | Hong Kong          | 1323        |
+--------------------+-------------+--------------------+-------------+
| India              | 386         | India              | 442         |
+--------------------+-------------+--------------------+-------------+
| Indonesia          | 600         | Indonesia          | 440         |
+--------------------+-------------+--------------------+-------------+
| Japan              | 972         | Japan              | 827         |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 746         | Malaysia           | 521         |
+--------------------+-------------+--------------------+-------------+
| Pakistan           | 3197        | Pakistan           | 1341        |
+--------------------+-------------+--------------------+-------------+
| Philippines        | 44          | Philippines        | 737         |
+--------------------+-------------+--------------------+-------------+
| Singapore          | 652         | Singapore          | 795         |
+--------------------+-------------+--------------------+-------------+
| Sri Lanka          | 322         | Sri Lanka          | 1144        |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 8493        |                    | 7570        |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 1713        |                    | 1752        |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 12376       |                    | 11411       |
+--------------------+-------------+--------------------+-------------+

### Table 4.4: Thailand's Mung Bean Imports

+--------------------+-------------+--------------------+-------------+
| **Import Trade     |             |                    |             |
| Matrix**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Country**        | Thailand    |                    |             |
+--------------------+-------------+--------------------+-------------+
| ###### Commodity   | Beans       |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan. - Dec. | Units:             | Metric Ton  |
+--------------------+-------------+--------------------+-------------+
| Imports for:       | 2004        |                    | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               | 0           | U.S.               | 0           |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Burma              | 5933        | Burma              | 7607        |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 46          | Malaysia           | 65          |
+--------------------+-------------+--------------------+-------------+
| Indonesia          | 104         | Indonesia          | 136         |
+--------------------+-------------+--------------------+-------------+
| China              | 1           | China              | 0           |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
|                    |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 6084        |                    | 7808        |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 0           |                    | 134         |
+--------------------+-------------+--------------------+-------------+
| Grand Total        | 6084        |                    | 7942        |
+--------------------+-------------+--------------------+-------------+

End of Report.