Thailand's animal feed sector value may fall 10 percent this year

The value of Thailand's animal feed industry may drop 10 percent this year to THB130 billion due to shrinking world demand amid declining raw material and oil prices, said the Bangkok Post.

The industry earned about THB140 billion last year, said Pornsil Patcharintanakul, president of the Thai Feed Mill Association.

Prices of all key raw materials for feeds are expected to fall in line with dropping oil prices and lower world demand.

Corn prices are expected to average THB6 per kg this year compared with THB7-8 in 2008, with soy at THB13-14 compared with THB17-19 last year, and fishmeal at THB18-19, down from THB20.

Corn demand is estimated to reach 3.8 million tonnes to 4 million tonnes this year, slightly higher than the estimated production of 3.5 million to 3.8 million. However, Thailand is expected to continue relying heavily on soymeal imports, as demand far exceeds domestic production.

Thailand imports 2 million tonnes of soy per year as domestic production is only 250,000 tonnes. Fishmeal output is 400,000-500,000 tonnes, with consumption at 460,000 tonnes.

Sa-nguansak Akravarinchai, president of the Thai Fishmeal Producers Associations, said imports has depressed prices and forced some producers to close.

US$1 = THB34.7215 (Jan 24)