Thailand sources feed ingredients next door
Thai companies are being encouraged to invest more in
producing grains for the animal-feed industry in neighbouring countries where
they can benefit from a regional co-operation programme.
Rising prices for fuel and raw materials used in the feed industry have
driven feed producers to adjust business strategies and to source lower-cost
grains close to home.
Also freight charges for shipping grains are placing more pressure on food
prices. Shippers paid US$110 per tonne of soybean meal shipped from Latin
American countries last year, up from about $35 in 2006.
Burma, Cambodia and Laos offer opportunities
to grow maize and soybeans at lower cost under a special Economic Co-operation
Strategy (Acmecs). Agricultural businesses increasingly are competing for grain
supplies with industrial businesses that want to produce ethanol, which is in
heavy demand as the use of gasohol expands.
Maize prices averaged 8.18
baht (US$ 0.27) a kilogramme in the last quarter of 2007, up 51% up from an
average of 5.41 baht (US$0.18) in the first quarter. Soybean meal increased 40%
during the same period to more than 16 baht (US$0.54) a kilogramme from about 11
An industry spokesman said a number of Thai companies
were taking advantage of the Acmecs programme, but there was still much room for
expansion as only 160,000 ha have been used in Burma for growing maize.
Pornsil Patchrintanakul, president of the Thai Feedmillers Association, has
frequently urged the government to speed up plans to expand plantations in
neighbouring countries and double the area, or allow planting of genetically
modified maize in Thailand to ease a possible shortage of the grain.
year, Thailand imports about 100,000 tonnes of maize under the Acmecs contract
farming scheme, mainly from Laos and Cambodia.
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