October 25, 2013

Thailand to export 500,000 tonnes of corn to lift animal feed prices

In an attempt to increase the price of animal feed, Thailand's Commerce Ministry has targeted the export of 500,000 tonnes of corn by year-end.

Somchart Soithong, Internal Trade Department director general, said six exporters who joined the ministry's price intervention scheme have exported more than 40,000 tonnes of corn as animal feed and October exports should amount to at least 100,000 tonnes.

A price intervention programme has been approved by the Cabinet to purchase corn from farmers at no less than THB7/kg (US$0.22/kg) with a purchase target of 1.8 million tonnes by December.

The Commerce Ministry has already bought 200,000 tonnes of corn from farmers at a total price of THB1.5 billion (US$48,000), he said.

Since the price intervention for the 2013-14 harvest, corn price has increased to THB8.10-8.20 (US$0.26-0.263) per kilogramme - much higher than the guaranteed price of THB7 (US$0.22) per kilogramme. The intervention may not be necessary if farmers could sell corn at a higher price, he said.

Surachart Kahintapong, managing director of Thien Hong Trading Co - a major Thai corn exporter, said the export price has been slightly higher than those quoted by overseas competitors but demand in the global market remained high and quality was an important factor.