July 25, 2008

Thailand feed manufacturers seek to raise prices

Thailand's Commerce Ministry has been swamped with applications from manufacturers who are requesting for another round of price increases, reported The Nation.

Animal feed producers want chicken feed prices to increase by US$2.87 to US$15.87 per 30 kilogrammes, and pig feed to rise to US$14.59 from US$10.86.

This comes after an approval by the ministry's Price Consideration Committee to allow a 16-cent increase per litre in palm and soybean cooking oil, which is expected to take effect in early August.

In total, the ministry received applications from 73 manufacturers to raise retail prices for 1,439 items in 19 categories, in compensation for escalating production costs caused by soaring oil prices and raw-material costs.

Applicants include those from the steel, fertilizer, feed and food industries. Consumer food products in the price-rise queue include fresh and condensed milk, canned fish, powdered and processed coffee and processed food.

Under the ministry's price-control measures, it will request producers to maintain current prices for as long as possible. However, goods that rely on imported raw materials will be granted increases on reasonable prices and correct timing.

In 2004, the Thai government froze feed prices in fear of setting off a chain reaction of rising prices in related industries, but that is set to change as global prices continue to rise.