Thai feed producers ordered to cut prices
The Thai Commerce Ministry's subcommittee on feed prices last week instructed producers to reduce their selling prices by 25% in order to lower the costs of livestock farmers and cut meat prices for consumers, reports The Nation.
Vatchari Vimooktayon, director general of the Internal Trade Department, said feed producers had to lower their prices following a reduction in raw material costs. The measure takes effect this week.
"To ensure fairness for feed producers, livestock farmers and consumers, the ministry will set up a monthly meeting to consider feed price adjustment in accordance with changing production costs," she said.
According to the ministry, prices of raw materials for animal feed have dropped by 0.65% over the past two years. The price of soybean meal decreased from Bt17 a kilogram to Bt12.74 last month.
The ministry will announce a price list for feed meal as soon as possible, so that enterprises do not sell at a level higher than the prices set.
If enterprises do not comply with the ministry's order, it will enforce the law governing goods and services price control to force them to do so, said Vatchari.
Pornsilp Patcharintanakul, president of the Thai Feed Manufacturers Association, said producers would agree to lower their prices if the ministry promised to allow a price increase within one week if they faced higher production costs.
He said feed producers would essentially agree to lower their prices in accordance with the ministry's instruction. So far, 52 association members have agreed to cut their retail prices this week.
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