August 22, 2012

 

Thailand may extend imported soymeal tariff cut

 

 

In order to help reduce the cost of feed-meal production amid the rising prices of cereal grains in the global market, the Commerce Ministry in Thailand is considering to extend its tariff cut on imported soymeal for another six months.

 

Vatchari Vimooktayon, director-general of the Internal Trade Department, said the ministry would continue to waive import tariffs on soymeal amid worries that the higher cost of raw materials could have a chain effect on the prices of feed meal and meat. So far, the tariff for soy meal import has been set at 2%.

 

Pornsilp Patcharintanakul, president of the Thai Feed Mill Association, said the government should urgently waive import tariffs for soymeal as the cost of feed-meal production had increased greatly in the past few months because of the drought in the US.

 

He pointed out that the cost of feed-meal production had increased continuously. For instance, the price of corn is up almost 20% since last year and soy price has risen 25%. Pornsilp expects the price of feed meal to continue to rise because of the prolonged US drought.

 

Since soymeal accounts for 50% of the total production cost of feed meal and if the government does not eliminate the import tariff on soymeal, the price of feed meal will have to be increased. That would affect the cost of production for livestock farmers and, consequently, food prices.

 

Pornsilp called for the government to scrap the import tariff on soymeal permanently, as Thailand cannot produce enough soy and soymeal to support feed-meal production.

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