March 15, 2022

Thai feed producers to urge government to remove feed from controlled items list

Animal feed producers in Thailand are set to call on the country’s Commerce Ministry to remove animal feed from the list of controlled products and allow prices to be determined by market mechanisms.

The price should also reflect the actual production costs, a news source said last week.

"Feed manufacturers are suffering from rising costs due to the Russia-Ukraine war," the source said. "The two countries are the world’s biggest suppliers of corn and wheat, which are the main ingredients of animal feed."

The source pointed out that since December, the global price of corn has risen 14% and wheat by 43%.

In Thailand, the price of corn has risen from ฿10.05 (US$0.30) baht per kilogramme in December to ฿12.65 (US$0.38) per kilogramme this month. The price of imported wheat has risen from ฿8.91 (US$0.27) to ฿12.75 (US$0.38) per kilogramme and soybean from ฿19.50 (US$0.58) to ฿22.5 (US$0.67) per kilogramme during the same period.

As part of a price guarantee scheme for farmers, the government has only set the floor price for corn at ฿8.5 (US$0.67) per kilogramme. However, it did not set a ceiling price, which means the price of corn could soar and boost the cost of producing animal feed. However, feed producers cannot raise prices as animal feed is a controlled item.

"If the Russia-Ukraine war persists, animal feed manufacturers may have to consider temporarily halting production to prevent losses. The government needs to immediately roll out aid measures or risk a shortage of animal feed, which will affect the animal farming industry, price of meat and people’s cost of living," the source said.

- The Nation