November 13, 2009

Thai producers call for soy imports soon

Thailand's Federation of Livestock and Aquaculture has urged the government decide on soymeal imports this week, said secretary-general Pornsilp Patcharintanakul.

The federation said the delay in announcing the 2010 import policy would affect the animal feed industry, which needs a steady supply of the major raw material. The Ministry of Commerce (MOC) has already specified imports for other raw materials, fish meal and corn.

The private sector wants the government to maintain the import tariff on soymeal at 2 percent, as agreed by a subcommittee on animal feed materials.

Pornsilp said the delay by MOC will create a chain reaction from rising feed prices, higher costs for livestock farmers and higher prices of meat for consumers.

He noted that import policies for the raw materials for animal feed are normally announced three months before the start of a new year.

If the import policy is not announced for implementation in January, businesses will have to deposit cash equal to a 10-percent import tariff and seek refunds later for the difference with the applied rate at 2 percent.

Pornsilp said about 200,000 tonnes of imported soymeal were needed each month, but delays may cause the current price of US$500 a tonne to rise.

He estimated that businesses would have to place up to THB330 million a month in deposits with the Customs Department in the absence of clear details on the final tariff rate.