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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