Thai feed millers call for duty-free grain

07-03-2008 | |

To help manufacturers manage with increasing production costs, the Thai Feed Mills Association has urged the government to cut duties to zero on imports of raw materials for animal feed.

Animal feed manufacturers say they could soon be forced out of business
because of the government’s policy to restrain the price of goods in spite of
cost-push factors.
According to The Nation Business, duties of 5-9% for maize, soybean and
fishmeal have imposed high burdens on manufacturers as maize and soybean are
also in high demand to produce alternative energy.
The Association also asked the government to revise its plan to help
consumers and use other measures than controlling prices, saying that such
controls would soon have an effect on farmers and employment.
“The government should allow product prices to increase in line with rising
raw materials prices, otherwise feed-mill producers will soon shut down as a
result of losses from the current prices,” said Pornsilp Patcharintanakul,
president of the Association, adding that some producers have already cut back
and laid off workers.
About 100 feedmill producers in the industry touch more than 4 mln families
or 20 mln workers, mainly in agricultural sectors that support the feedmill
industry.
Feed-mill enterprises have not been allowed to hike prices since 2004,
despite raw-material costs rising by more than 30% over the same period last
year.
The industry produces 11 mln tonnes worth Bt130 bln a year. Normally supply
increases by 5-7% annually but rising material costs and a shortage of finance
in the industry will reportedly cause flat growth this year.
 

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