News last update:6 Aug 2012

Thai feed makers lobby for price increase

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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