July 23, 2026
 

Thai feed millers issue ultimatum over corn pricing as market rates hit 14 THB/kg

The Thai Feed Mill Association says it will not accept the existing corn procurement framework for the new season after actual market prices ran nearly 43% above the regulated reference price for much of last year.

Thailand's Feed Mill Association has demanded a revision of the country's feed corn procurement pricing framework, warning that it will not enter the new season under existing terms after market prices surged to 13-14 THB/kg (US$0.38-0.41/kg) against a fixed reference rate of 9.80 THB/kg (US$0.28/kg) that governed purchases throughout last year.

Pornsil Patchrintanakul, President of the Thai Feed Mill Association, said the pricing mechanism that set a single purchase price of 9.80 THB/kg for the full year failed to reflect market reality, as actual trading prices climbed to 12-14 THB/kg during the final four to five months of the season. He said the gap inflicted serious financial damage on feed manufacturers and that those responsible for allowing prices to deviate so far from the declared rate needed to account for it.

"The question is: if the announced price was 9.80 THB/kg for the whole year, why did it end up at 13-14 THB/kg? Who allowed prices to rise to that level? Those involved need to answer that - not me, because I am the one who suffered," Pornsil said.

Pornsil confirmed that negotiations over the new procurement framework remain unresolved and that the association has formally presented the damages incurred to relevant parties, calling for a fair resolution before the new corn season begins. He said if the government or relevant agencies insist on maintaining the old conditions, the association cannot proceed given the structural cost disadvantage it creates. Whether to move to a fully liberalised corn market remains under discussion with no conclusion reached.

The dispute comes during a seasonal low in domestic corn supply, which Pornsil said has led some feed mills to temporarily halt or suspend operations for maintenance and equipment preparation. Daily price data from mid-July showed numerous plants operated by major feed producers - including CPF, Betagro, Charoen Thong, LTC and Thai Foods Group - marked as suspended from corn purchases, reflecting the tightness in available supply.

Thailand's feed corn pricing framework has been a recurring source of tension between feed manufacturers and grain traders, with the industry arguing that administered price mechanisms expose millers to sustained losses when domestic supply falls short and spot prices diverge sharply from regulated benchmarks.