Feed cost 'could be serious'

Petchanet Pratruangkrai

The Nation

The animal-feed producers are among the hardest hit by skyrocketing costs of raw materials.

The government froze animal-feed prices in 2004 and, since 2003 producers have faced increases in raw materials costs ranging from 38-118 per cent. Fish meal is up 38 per cent, soybean meal 55 per cent, maize 75 per cent, tapioca chips 88 per cent, rice bran 91 per cent and broken rice 118 per cent.

The producers want their prices to increase 10-20 per cent and import tariffs to be cut on 19 raw materials

Organisations that joined yesterday to represent animal-feed producers included the Thai Feed Mill Association, the Crop Growers and Merchandise Association, the Thai Fishmeal Producers' Association, the Soybean and Rice Bran Oil Processors' Association, the Thai Rice Mills Association and the Thai Tapioca Trade Association.

"It is time for the government to allow prices to follow the rising cost of raw materials, because many producers are facing losses from the animal-feed price-control measure," said Thai Feed Mill Association president Pornsilp Patcharintanakul. "Moreover, related farmers will be soon affected because the collapse of many businesses will create a chain effect, involving them."

The association claims there are 5 million crop-growing and cattle-feeding families. Four million families are rice growers, 500,000 families are cassava farmers, 300,000 are maize farmers, and 300,000 are animal feeders.