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Thai feed makers lobby for price increase

Published on 21 April, 2008, Last updated at 04:38 GMT


With surging global feed prices, animal feed producers in Thailand are asking the Commerce Ministry to allow them to raise prices by 10-20% of maize, soybean meal, fishmeal, rice bran and broken milled rice that have now reached an all-time high worldwide.

According to Pornsilp Patcharintanakul, president of the Thai Feed Mill Association, domestic maize prices have risen 46% since 2003, while rice bran has shot up more than 90% since 2003.

Milled rice prices this year have risen by more than 118% and soybean meal became 79% more expensive.

Pornsil added that that the government had promised earlier to waive the 4% import tariff on soybean meal but has yet to do so.

Feed makers have also asked for tariff cuts on substitute raw materials – sunflower meal, coconut meal and soybean husks – that have been controlled by the government since 2004, and "are not compatible with the rising prices of raw materials and as a consequence are distorting the market mechanism."

"We don't want to see a monopoly which has been managed by the government through its price-control measures since 2004. The controls are against the market trend and will damage market mechanisms," Pornsilp said.

He emphasised that manufacturers insist on producing high-quality feed meal in spite of the increasing cost of major raw materials.


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