November 8, 2004

Thai Swine Raisers Seek Further Soymeal Tariff Reduction
 

The Swine Raisers Association of Thailand has requested for the import tariff on soybean meal to be trimmed to 2.5 per cent.

The call followed the government's Food and Oil Seed Committee unsuccessful meeting in finding a common position on the issue.

The Commerce Ministry wants the tariff reduced from the current 5 per cent to 3 per cent. But the Agriculture, Finance and Interior ministries want the duty set at 4 per cent, which was the rate the panel forwarded to the Cabinet for consideration. Soybean meal is the standard feed ingredient for swine in Thailand

The Cabinet will make a final decision on the tariff at its meeting next Tuesday. Surachai Sutthitham, president of the association, said a reduction to 4 per cent would not reduce swine farmers' costs.

"The committee should cut the tariff in half to strengthen the competitiveness of manufacturers. We have had to face unfair practices due to high import tariffs for years," he said.

Manufacturers contend they face many difficulties. They cite the government's food-safety policy, which has forced the livestock industry to improve standards. To make matters worse for livestock farmers, the deadly bird flu has cut poultry exports by 60 per cent and domestic consumption has also declined.