January 23, 2013

Thailand has approved a plan for the Public Warehouse Organisation to bring in 450,000 tonnes of tariff-free corn from Laos and Cambodia.

About 200,000 tonnes would be imported from Laos between January and February for re-export, said government spokesman Thosaporn Serirak.

Another 250,000 tonnes of corn would be imported from Cambodia, with 100,000 tonnes in August and another 150,000 tonnes between November and January 2014 for use as raw material for animal feed production.

The imports aim to ease the tight supply in the animal feed market due to global supply shortfalls as a result of droughts.

The Office of Agricultural Economics forecasts corn production for the 2012/2013 crop of 4.69 million tonnes, lower than the previous crop at 4.78 million tonnes.

Domestic use is estimated at 4.67 million tonnes this year, slightly higher than the 4.36 million tonnes consumed in 2012, largely for the animal feed industry.

The agency predicts 150,000 to 250,000,000 tonnes will be exported while the feed industry needs to bring in about 300,000 tonnes.