July 9, 2008
Thailand's feed companies finally allowed to raise prices
Feed companies in Thailand will soon be allowed to hike prices to offset rising production costs after months of pleading with authorities.
Feed companies have long called for Thailand's authorities to lift controls on feed prices in the face of rising raw material costs.
Shrimp and pig feed are the first feeds that will be sold against a higher price.
The government froze animal-feed prices in 2004, and has not approved price increases since then out of fear that they would cause a chain effect on related industries.
Internal Trade Department director-general Yangyong Phuangrach said last week prices would be going up soon. The new prices would be gradually implemented to give both consumers and farmers more time to adjust, he added.
The move was linked to a surge in corn exports that begun since the beginning of the year. Thailand's corn exports are expected to double to 1 million tonnes this year. India's ban on corn exports, announced last week prompted prices in Thailand to rise 25 percent in a matter of days. Prices are expected to rise further as two of Asia's biggest corn suppliers, China and India, exit the market.