Most retail feed-meal prices to drop by 5 per cent

However, feed-meal price for aquaculture will be cut less than the others, due to raw-material prices for that industry remaining high.

The price reductions will encourage farmers to lower production costs amid the domino effect from the global financial crisis and local political turmoil. Internal Trade Department director-general Yangyong Phuangrach yesterday said the price reduction would take effect immediately.

The department reported that raw-material prices, including corn, were quoted at Bt9.32 a kilogram in July, up from Bt8.07 last October. In the same period, soybean meal dropped from Bt17.34 a kilo to Bt16.99, tapioca pellets fell from Bt4.50 a kilo to Bt5.60, broken rice remained unchanged at Bt14.08 a kilo, and bran decreased from Bt9.70 a kilo to Bt6.70. Only fishmeal has increased, from Bt28.85 a kilo to Bt30.78.

The department predicts raw-material prices will stabilise. Moreover, the government's price-intervention policy should not increase farm prices.

Yangyong said his department might also propose a reduction in the import tariff for soybean meal from 4 per cent now to 2 per cent or less, perhaps even eliminating it.