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Published on October 17, 2007

He was commenting on reports that manufacturers are raising their prices amid the continued spike in oil prices. Oil futures made a new record high yesterday at US$86.64 (Bt3,000) per barrel, while domestic gasoline prices will increase today. The diesel price is maintained at Bt27.34.

Sukhawat, also the president of CPF unit International Pet Food, the manufacturer and distributor of JerHigh pet food, said that costs of agricultural products and transportation had increased, affecting the margin of all CPF products. However, CPF's policy is to adjust its production technologies and control other costs instead of raising product prices.

"It is very easy to adjust product prices," Sukhawat said. "But if we do this, people would suffer the impact. So our executives have decided to control other costs.

"Increasing prices would be the last alternative we would choose for the survival of our business."

He added that if the economic outlook did not improve and CPF and its subsidiaries were still affected by the higher costs, the group would decide to raise its product prices.

"Finally, we may adjust prices. I can't say that it will happen this year but I confirm that people would not be hurt by our decision," he said.

CPF's operating results in the second quarter dropped 5 per cent from the same period last year, while it reported a net loss in the first quarter, due to the decline in prices of domestic meat products.

Nalin Viboonchart

The Nation