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Published on April 5, 2008

A source from an animal-feed maker said the two policies were in conflict and this would lead more than 1,000 animal-feed producers to shut operations in the next six months.

"The government should look at the broad picture, not a particular group. We will not participate in the meetings unless the government reconsiders our proposals and sets up a new committee involving all sectors to consider the industry-wide problems," he said.

The Finance Ministry last week announced that it would not cut import tariffs on soybean meal, saying that a tariff cut would affect domestic soybean-oil makers, whose earnings from the sale of soybean meal could be reduced. Feed-meal makers have asked several times for tariff cuts to ease shortages, which push up their production costs.

They have also pushed for a 15- to 20-per-cent increase in product prices as costs have increased by 40 to 70 per cent from last year.

Meanwhile, Pornsilp Patcharintanakul, president of the Thai Feed Mills Association, urged the government to resort to other solutions to limit price increases, saying the price-control measure would soon create a domino effect on farmers and employment.

Petchanet Pratruangkrai

The Nation