August 28, 2025

Thailand tightens rules: Feed factories must buy local corn before importing 

The Thai Department of Internal Trade is enforcing stricter regulations on animal feed factories, mandating that they buy corn from domestic farmers before applying for import quotas.

This aims to raise corn prices and alleviate the hardships faced by farmers due to delayed purchases by some factories.

Yanee Srimanee, Deputy Director-General of the Department of Internal Trade (DIT), revealed that while animal feed corn from farmers in several areas, such as Phetchabun and Nakhon Sawan, is beginning to reach the market, some animal feed factories are delaying purchases or limiting orders, resulting in lower corn prices and causing hardship for farmers. The Department of Internal Trade is closely monitoring the situation.

Chatuporn Buruspat, Minister of Commerce, has ordered the Department of Internal Trade to strictly supervise all animal feed factories to ensure compliance with agreements reached with the Field Crop Trade Association, the Phetchabun Field Crop Trade and Production Association, and corn farmers, particularly in Phetchabun and Nakhon Sawan provinces.

Srimanee stated that animal feed factories wishing to import raw materials from abroad, such as corn or wheat, must first purchase domestically produced animal feed corn at the price set by the Animal Feed Corn Policy Committee (AFCPC) at its third meeting on June 10, 2025, which set the price at ฿9.80 (US$0.30) per kilogramme. This purchase price is an important condition that factories must comply with as proof of documentation in their application for import permits under the WTO quota.

To alleviate farmers' suffering, the DIT  has coordinated with all animal feed factories to expedite domestic corn purchases and has dispatched DIT inspectors to strictly inspect factories that fail to comply with regulations to ensure fair treatment for farmers. Srimanee stated that the purchase price will enable farmers to sell fresh corn with a moisture content of 30% at a price of ฿7.05 (US$0.22) per kg, a price they can afford.

The government and industry stakeholders held a meeting on August 22 to discuss guidelines for regulating the purchase and import of corn, as well as plans for managing the anticipated increased production to market in early September. The discussions are expected to be released in various platforms.

Srimanee emphasised that the DIT prioritises fairness for farmers and strictly regulates the import of raw materials from abroad to ensure balanced and sustainable animal feed production. All animal feed factories must comply with domestic purchasing conditions before being eligible to apply for import quotas.

-      Thai BPS