In a significant boost for Thailand’s agricultural sector, Malaysia has officially approved the import of Thai beef, a move that promises to enhance income for livestock farmers across the kingdom. Announced by Thailand’s Agriculture Minister Narumon Pinyosinwat on Tuesday, this development marks a pivotal step in strengthening trade ties between the two Southeast Asian neighbours and underscores Thailand’s growing role in the regional beef market.
The approval, communicated by Malaysia’s Department of Veterinary Services (DVS) to Thailand’s Agriculture Ministry on 16 January, sets the stage for Thai exporters to tap into Malaysia’s lucrative beef market. However, as Narumon highlighted, exporters must first register with the DVS to obtain the necessary certification—a procedural hurdle that ensures compliance with Malaysia’s stringent veterinary standards. This requirement reflects a broader emphasis on quality control in cross-border agricultural trade, a priority for both nations.
A Timely Economic Opportunity
For Thai cattle farmers, the timing of this approval could not be more opportune. Thailand’s livestock sector has seen steady growth, with the country boasting 9.904 million cattle in 2024, a 2.58% increase from the 9.655 million recorded in 2023. Last year alone, Thailand exported 133,416 live cattle, generating revenue of 3.242 million baht (approximately £73,000). While these figures are modest compared to other agricultural exports like rice or rubber, they highlight the untapped potential of the cattle industry as a source of economic diversification. The Malaysian market, with its high demand for beef due to cultural and dietary preferences, offers a promising avenue for Thai farmers to scale up their operations. Malaysia, a predominantly Muslim nation, places a premium on halal-certified meat, and Thailand has increasingly positioned itself to meet such standards through rigorous certification processes. If Thai exporters can navigate the registration process efficiently, this trade deal could translate into a significant income boost for rural communities, many of whom rely on cattle farming as a primary livelihood. Beyond immediate financial gains, the agreement signals a deeper economic collaboration between Thailand and Malaysia. Both countries are members of the Association of Southeast Asian Nations (ASEAN), which promotes intra-regional trade as a cornerstone of economic integration. By facilitating beef exports, Thailand and Malaysia are reinforcing ASEAN’s vision of a unified market, potentially paving the way for similar agreements with other member states. 
Broader Ambitions: Eyeing the Chinese Market
Thailand’s ambitions for its livestock sector extend far beyond Malaysia. During a press briefing following the inaugural meeting of the Cattle Beef Development Policy Committee for 2025, Minister Narumon revealed plans to negotiate with China for the export of live cattle. Accompanying Prime Minister Paetongtarn Shinawatra on an official visit to China from Wednesday to Saturday, Narumon aims to secure approval from Beijing, which could open up one of the world’s largest markets for Thai cattle farmers. China’s demand for beef and live cattle has surged in recent years, driven by a growing middle class and shifting dietary habits. If successful, this deal could dwarf the Malaysian agreement in scale and economic impact. However, negotiations with China are likely to be complex, involving strict biosecurity measures and quotas. While no concrete outcomes have been confirmed from the visit, the proactive stance of the Thai government underscores its commitment to elevating the livestock sector as a key pillar of the national economy.
Challenges on the Horizon: Disease Prevention and Market Access
Despite the optimism surrounding these export opportunities, Thai farmers face significant challenges that could temper the benefits of these trade deals. One pressing concern is the risk of foot-and-mouth disease (FMD), a highly contagious viral infection that can devastate cattle populations and disrupt trade. During the recent policy meeting, officials resolved to seek funding from the government’s central emergency fund to purchase vaccines for farmers, a preventative measure aimed at safeguarding the industry. FMD outbreaks have historically plagued Thailand’s livestock sector, leading to export bans and economic losses. While vaccination programmes have reduced the incidence of the disease, maintaining herd health remains a priority, especially as Thailand seeks to build trust with importing nations like Malaysia and China. The government’s push for emergency funding reflects an awareness of these risks, though the speed and scale of vaccine distribution will be critical to ensuring uninterrupted trade. Additionally, Thailand’s own beef imports—35 tonnes in 2024, a 38.34% increase from the previous year—point to a domestic demand that could compete with export ambitions. Balancing local consumption with international trade commitments will require careful policy coordination to avoid supply shortages or price spikes that could affect Thai consumers.
Economic and Regional Implications
The approval of Thai beef exports to Malaysia is more than a bilateral trade agreement; it carries broader implications for Thailand’s economic strategy and regional standing. Agriculture remains a backbone of Thailand’s economy, employing millions and contributing significantly to GDP. Yet, the sector has often struggled with low productivity and vulnerability to global price fluctuations. Diversifying export markets for products like beef offers a pathway to greater resilience, reducing reliance on traditional staples like rice. This deal could serve as a model for Thailand’s engagement with other ASEAN countries. Nations like Indonesia and the Philippines, both significant beef importers, may look to Thailand as a reliable supplier if the Malaysia agreement proves successful. Such developments would not only boost Thailand’s economy but also enhance its influence within ASEAN, positioning Bangkok as a key player in regional food security. From a geopolitical perspective, agricultural trade agreements often serve as soft power tools, fostering goodwill and cooperation between nations. For Thailand and Malaysia, whose relationship has occasionally been strained by issues like border disputes in the southern provinces, economic partnerships in areas like beef exports can help build trust and mutual benefit. If sustained, this collaboration could spill over into other areas of bilateral cooperation, from tourism to infrastructure development.
Looking Ahead: Sustainability and Farmer Support
As Thailand ramps up its beef exports, questions of sustainability and farmer welfare loom large. Cattle farming, while lucrative, can have significant environmental impacts, including deforestation for pastureland and greenhouse gas emissions from livestock. The Thai government will need to balance economic gains with environmental stewardship, potentially through incentives for sustainable farming practices or stricter regulations on land use. Equally important is ensuring that the benefits of export deals trickle down to small-scale farmers, who form the majority of Thailand’s agricultural workforce. Policies to provide training, access to vaccines, and support for halal certification could empower rural communities to compete in international markets. Without such measures, there is a risk that larger agribusinesses will dominate the export trade, exacerbating income inequality in the countryside.
A Step Forward for Thai Agriculture
Malaysia’s approval of Thai beef imports represents a small but meaningful victory for Thailand’s agricultural sector, offering a lifeline to cattle farmers and a glimpse of broader economic potential. As Thailand eyes further markets like China, the government’s focus on disease prevention and market access will be crucial to sustaining momentum. For now, this deal stands as a testament to the power of regional cooperation, with the promise of strengthening ties between Bangkok and Kuala Lumpur.
Yet, the road ahead is not without obstacles. From ensuring herd health to navigating international trade regulations, Thailand must address multiple challenges to fully capitalise on this opportunity. If managed effectively, however, the beef export trade could become a cornerstone of Thailand’s agricultural renaissance, benefiting farmers, consumers, and the economy at large.
