Producers push govt to remove animal feed from control list as corn, wheat prices surge
Animal feed manufacturers are set to call on the Commerce Ministry to remove animal feed from the list of controlled products and let the price be determined by market mechanisms. The price should also reflect the actual production costs, a news source said on Friday.
“Feed manufacturers are suffering from rising costs due to the Russia-Ukraine war,” the source said. “The two countries are the world’s biggest suppliers of corn and wheat, which are the main ingredients of animal feed.”
The source pointed out that since December, the global price of corn has risen 14 per cent and wheat 43 per cent. In Thailand, the price of corn has risen from 10.05 baht per kilogram in December to 12.65 baht per kilo this month. The price of imported wheat has risen from 8.91 baht to 12.75 baht per kilo and soybean from 19.50 baht to 22.5 baht per kilogram during the same period.
As part of a price guarantee scheme for farmers, the government has only set the floor price for corn at 8.5 baht per kilogram. However, it did not set a ceiling price, which means the price of corn could soar and boost the cost of producing animal feed. However, manufacturers cannot raise prices because animal feed is a controlled item.
“If the Russia-Ukraine war persists, animal feed manufacturers may have to consider temporarily halting production to prevent losses. The government needs to immediately roll out aid measures or risk a shortage of animal feed, which will affect the animal farming industry, price of meat and people’s cost of living,” the source said.