E-Malt.com News article: 2996

Thailand: In 2003,Thailand imported 9,008 tonnes of barley valued at CA$ 3.5 million (CIF value) versus 7,201 tonnes valued at CA$ 2.6 million in 2002. Meanwhile Thailand imported 198,619 tonnes of malt valued at CA$ 99.8 million (CIF value) against 167,248 tonnes valued at CA$ 77.5 million in 2002, according to Agriculture and Agri-Food Canada (AAFC). This level of import makes Thailand a sizeable target for malt and barley exporters. Trade sources comment that malt extract is not used as an ingredient by local brewers except for Boon Rawd, which sometimes uses minimal quantities of malt extract to add colour to the beer. Trade sources indicated that malt extract, if used, forms less than 1% of total production quantity. Barley and malt is imported wholly for consumption in the domestic market.

9 different countries exported malt to Thailand in the period from 2001 to 2003. In 2003, the major exporters of malt were: UK, with 38% share of the total import market. Trade sources indicated that the UK is a traditional supplier of malt to Thailand. It supplied the most competitively priced malt to Thailand in 2003; Australia, with 31% share of the total import market. Trade sources indicated that Australian malt has an excellent reputation as a high quality and price competitive product in Thailand; Germany, with 11% share of the total import market. Germany has consistently been the third largest supplier of malt to Thailand, being a traditional supplier of malt to Thailand. Its price was less competitive compared to the UK and Australia. Thailand also imported 7% of malt from France, 5% from Belgium and 1% from the other countries.

In the same period, only 5 different countries exported barley to Thailand. In 2003, the major exporters of barley was Germany, with 67% share of the total import market. It was the only consistent supplier of barley to Thailand in the period. Trade sources indicated that Germany is a traditional supplier of barley to Changmai Malting Co, the malting company of Boon Rawd Brewery. In 2003, Georgia was the other supplier of barley to Thailand. It is an erratic supplier of barley to Thailand, it did not supply any barley to Thailand in 2002 and only supplied 600 tonnes in 2001. Its landed cost was more price competitive than Germany's in 2003.

According to trade sources, the bulk of the imported barley was supplied to Boon Rawd Brewery Co. Ltd's malting company, Changmai Malting Co. It should be noted that local barley is also used by Changmai Malting Co.

The bulk of imported malt is distributed to the three major breweries in Thailand. These are Beer Thai (1991) Co. Ltd (which produces Chang beer with around 60% share of the beer market), Boon Rawd Brewery Co. Ltd (which produces Singha, Kloster, Thai and Leo beer with around 33% share of beer market) and Thai Asia Pacific Brewery Co. Ltd (which produces Heineken with about 6% share of the beer market).

Both Beer Thai and Boon Rawd source their malt from the UK, Australia, Germany and France. Trade sources added that while Boon Rawd has never sourced from Canada, Beer Thai has in the past used malt from Canada but this stopped a few years ago when Canada was unable to supply due to poor weather conditions which affected the production of Canadian malt.

A minor proportion of the imported malt is used by a handful of microbreweries in Thailand which brew fresh beers for their pubs. These microbreweries include Tawandang Brewhouse and Kronenbrauhaus in Bangkok.

There are no local importers involved in importing malt or barley into Thailand. Trade sources comment that: Imported malt is purchased directly by Thailand's major breweries. The breweries purchase malt directly from their long-standing overseas suppliers that are already familiar with their technical specifications and purchasing requirements. Thai Asia Pacific Brewery Co. Ltd's procurement is controlled by their central purchasing department located in Singapore.

Apart from Boon Rawd Brewery, which has a malting plant that uses both local and imported barley, the other two breweries do not purchase barley. Nor do they use malt extract.

Microbreweries import their malt directly from their suppliers. They do not use malt extracts.

According to Agriculture and Agri-Food Canada (AAFC), demand for malt has generally been positive over the past 3 years, growing at about 6% per annum over the period while demand for barley grew by almost 25% in 2003, having stayed static in 2001 to 2002.

Trade sources indicated that beer consumption is expected to grow at similar rates over the next three years. They comment that demand for malt continues to arise largely from the three main breweries while barley demand will continue to come from Boon Rawd's malting plant. The Thai breweries are aggressively marketing their brands of beer to increase consumption locally. Boon Rawd and Beer Thai are also attempting to increase their export of beer to neighbouring countries, including ASEAN countries.

Trade sources indicated that opportunities may exist to supply competitively priced malt, and barley where this applies, that matches the technical specifications and purchasing requirements of the local breweries. This is positive for Canadian exporters that can meet the malt specifications and purchasing criteria of local users of barley and malt.


23 July, 2004