February 17, 2011

 

Thailand's rising egg, meat prices prompt feed meal cost inspection

 

 

Thailand's Commerce Ministry will investigate whether increases in the cost of feed meal are pushing up retail prices amid the rising prices of meat and eggs.

 

The move came after the ministry received a lot of complaints. For instance, the price of pork has increased since last month by THB10 (US$0.33) per kilogramme to THB115-120 (US$3.75-$3.92), while eggs have gone up from THB2.90-3 (US$0.09-$.10) per egg to THB3.10 (US$0.101) now.

 

Ministry spokesman Chatchai Chookaew said yesterday that Commerce Minister Porntiva Nakasai had ordered the Internal Trade Department to look into the production cost of feed meal and whether it is in line the rise in retail prices of these main foods.

 

Pig and egg producers claim that the cost of essential materials has increased by an average of 5%.

 

However, the ministry will consider ways keep pork and egg prices reasonable.

 

Chatchai said the ministry would also try to distribute more cooking palm oil to consumers, as there were still a lot of complaints, particularly about retail prices. In some areas, consumers have been charged THB6,570 (US$214.50) per litre bottle, much higher than the controlled price of THB47 (US$1.53).

 

Vatchari Vimooktayon, directorgeneral of the Internal Trade Department, said the palmoil quota allocation had been changed to ensure optimal distribution. In particular, 50% has been distributed to modern trade channels such as supermarkets and the rest directly transferred to large communities.

 

"We will consider whether it is necessary to adjust the retail price of cooking palm oil for another round if manufacturers cannot shoulder higher costs of imported oil," she said.

 

Despite the big lot of imported palm oil, the shortage persists, as the ministry found that some manufacturers had reduced production capacity. They claim the higher production costs mean cooking palm oil should be priced at THB54 (US$1.76) per litre bottle, but the price has been capped by the government at THB47 (US$1.53).

 

Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said consumers' cost of living was a government priority. As a result, the ministry has closely monitored prices of goods and foods. However, he said, it was reluctant to interfere with market mechanisms.

 

He pointed out that the rising pork price could be the result of hot weather, which delays pigs' growth. The ministry will closely monitor prices from the farm through to the butcher shop.

 

"If the prices at the butcher shop are not increased in line with farmers' costs, that means unfair practices by butchers," he said.