Farm Cost Increases

[ozzydom]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

[Mosha]

Its prices in general. Everything seems to be going up. The rice we buy a few months back was 320 for a 15Kg bag, now up at 370.

Edited January 21, 2008 by Mosha

[stoneman]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

The fertilizer we use for the fruit trees and the rubber trees has gone from 550 baht last Aug/Sep to 700 baht last week...That is a little more than a 25% increase in less than 6 months,,

Edited January 21, 2008 by stoneman

[Jai Dee]

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

Neither can I...

newslink

[Khonwan]

“Fuel prices, worldwide demand for fertiliser, and increased acreage are being blamed for the higher costs.” This was the reported reason by one media outlet.

I’d put the increased demand down to the bio-fuel craze. But that’s the same craze that’s driving up the value of crops like cassava. Net result for cassava growers is good (in terms of farming).

Rgds

Khonwan

[ozzydom]

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

Neither can I...

newslink

MMM , The high phosphate fertilizer we use is Chinese origin and our supplier told us togay that another increase is in the pipeline, funny thing is ,the local equivelant went up to the same price ,I use the Chinese brand because of its solubility for the ponds.

[SAP]

HI OZZY

From my understanding the continued govt subsidies given to US farmers, to grow maize corn for ethanol, has created a world shortage for food and animal feed.

And fertililzer prices have risen because the fuel price has stayed at around 30 bt/l (for diesil to use as a measure) where at this time last year it was 24-25bt per liter. And to produce fert especially urea depends on the cost of crude oil for both production and shipping>

GOOD NEWS FOR FARMERS THOUGH!!

I THINK

Bio Diesil is now cheaper than fossil fuel diesil. My opinion is that farmers now have a choice of what they really want to grow. All factories corn, rice, cassava, sugarcane, rubber, palm oil all want raw materials and they are having to fight themselves for growing area instead of just screwing down the poor farmer. Thai factories have been notorious for years on creating an over-supply of raw material, just so that they can buy it back cheaply!!

SAP

[ozzydom]

Hi Phil, Yes mate ,that sounds a feasible explanation,hope the manufacturers change over to Bio-fuel and pass on the savings. (fat chance).

How are all the projects going , keeping you busy?

Cheers

ozzy

[Gary A]

I am of the opinion that bio fuels are responsible for creating food shortages is plain bull sh!t. Here in Loei province you will see huge tracts of land NOT being utilized for anything. In the USA the government in their wisdom STILL pays farmers to grow NOTHING. I do agree that bio fuels have driven up the price of certain crops BUT that increase was long past due. It's simply supply and demand. Withholding product to create artificially high prices is alive and well and if it pays to raise more, you will see more product.

[fruity]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

Same here, Pig food up an average across the board 30 baht per bag-30kgs. Just in Big C-Buriram tonight, pork selling @ 99 baht per kilo! a fortnight ago it was 80 baht! We sold out our last batch of pigs new year, presently in this area finished pigs are fetching upto 55 baht/kilo. when we sold 45 baht!

Ozzie, ever thought about putting phosphate rich pig dung into your ponds? greens them up wonderfully & is a long way cheaper than buying fertiliser.

[slapout]

Fertilizer cost increases are being blamed on rising oil prices, by the suppliers/ manufactors. I can agree that transport costs have increased, but the oil price should not affect cost of urea etc. It is made using natural gas and other gases at pressure and temperature as required. I am not sure where the media get their info or in many cases, guesses, but I certainly would suspect their sources. Natural gas price is presently around 7.80dollars per 1000 c.f. When you figure 22 gallon per 1000 c.f. there is a huge mark up involved in the cooking gas and natural gas heating markets. Guess a lot of people believe what they hear on television or read in newspapers.

[ozzydom]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

Same here, Pig food up an average across the board 30 baht per bag-30kgs. Just in Big C-Buriram tonight, pork selling @ 99 baht per kilo! a fortnight ago it was 80 baht! We sold out our last batch of pigs new year, presently in this area finished pigs are fetching upto 55 baht/kilo. when we sold 45 baht!

Ozzie, ever thought about putting phosphate rich pig dung into your ponds? greens them up wonderfully & is a long way cheaper than buying fertiliser.

To tell the truth fruity,that was my original intention when I planned the farm, I went to a lot of trouble drawing plans of intended pens,drainage and storage etc, only to find out that the villagers have an aversion to fish that eat pig poo ,so that was shelved.

Now we are breeding up our duck numbers to provide some P but that is slow because people buy them as quick as I grow them.

The locals reckon the farang has the fattest ,tastiest quackers around ,who am I to argue, as long as they pay our 70 baht a kg liveweight.

[fruity]

To tell the truth fruity,that was my original intention when I planned the farm, I went to a lot of trouble drawing plans of intended pens,drainage and storage etc, only to find out that the villagers have an aversion to fish that eat pig poo ,so that was shelved.

Now we are breeding up our duck numbers to provide some P but that is slow because people buy them as quick as I grow them.

The locals reckon the farang has the fattest ,tastiest quackers around ,who am I to argue, as long as they pay our 70 baht a kg liveweight.

Great price for the Ducks! We only get 40 baht/kilo liveweight! However, the woman comes regularly & cleans up whatever we have available; don't mind the lowish cost, she has to make a profit:) She was only here yesterday afternoon, took away seven, last month she had near thirty:)

If you have the Muscoveys, these are really of little use for depositing poo in the pools as they don't really spend much time on the water, the egg laying Khaki Campbells spend hours on the water & deposit lots:) We did have a slatted floor duck house built over one of our pools, to be truthful this pool was 'dirtier' than the pool the main body of the pig dung goes into.

[SAP]

Fertilizer cost increases are being blamed on rising oil prices, by the suppliers/ manufactors. I can agree that transport costs have increased, but the oil price should not affect cost of urea etc. It is made using natural gas and other gases at pressure and temperature as required. I am not sure where the media get their info or in many cases, guesses, but I certainly would suspect their sources. Natural gas price is presently around 7.80dollars per 1000 c.f. When you figure 22 gallon per 1000 c.f. there is a huge mark up involved in the cooking gas and natural gas heating markets. Guess a lot of people believe what they hear on television or read in newspapers.

Yes you maybe right I thought urea was made from Liquid Petroleum Gas LPG and not Compressed Natural Gas. But was also explained to me that in Europe when the fuel prices go up, that puts more demand on the gas trade, when that demand increases the gas gets used to alternative uses (such as home heating) rather than fertilizer. A friend of mine thats works for a fert company back home told me that. So don't know if it is true on not.

But I still think it is good that bio-fuels are now at same prices as fossil fuel; so if people thinks its a conspiracy with companies jamming up prices there are now also more options for consumers??

[Khonwan]

... 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht ....

Hi ozzy

I visited my local Sahagon today. Three brands of 16-20-0 on sale: two @700 baht and one @730 per 50kg bag. There should be one near you.

Rgds

Khonwan

[ozzydom]

Thanks for that K ,I will check out a couple more outlets,see if I can do better.

cheers

ozzy

[torrenova]

If fuel costs have increased from Bt25 to Bt30 per litre, a 20% increase, then there is no reason for a 20% hike in the price as fuel costs are not 100% of the costs of the product. If they were 25%, then the resultant increase would be 25% * 20% = 5%. Blaming fuel increases for all is a mathematical impossibility.

[slapout]

The fuel increase at the pumps yesterday (30/1/08) of 20 stang was explained by PTT spokesman as being due to Opec not increasing production. How could anyone justify raiseing price of fuels in tanks at the petrol stations, due to a decision made at a meeting of oil producers? In the real world gasoline prices have dropped about 15 cents per gallon, over past 2 weeks, not so in Thailand. As mentioned above, US still pays farmers not to grow some crops. Maybe this thinking is now part of PTT price structure, and since they are the supplier in Thailand they get the monies from consumer and pay themselves for no action by opec. Family told me the other day, it cost 100 baht to run water pump (gasoline engine 5 hp) for irrigation for one day. Double from 2 or 3 years ago.

[ozzydom]

True slapout, what has Opec production got to do with the price increases by oil companies?

Opec meets and sets the price of crude ,the oil companies buy the crude ,refine it and distribute the their products.

If production costs rise ,then there is a case for price increases, but the ever changing retail prices (more up than down ) seem unjustified.

There are ongoing investigations in Oz by consumer groups and Government organisations regarding the pricing of petroleum products ,but oil companies seem to be a law unto themselves,maybe because they handle one of the worlds most important commodities.

[torrenova]

Oil as with many other commodities is priced on a replacement cost basis, not what it actually cost.

[ozzydom]

Oil as with many other commodities is priced on a replacement cost basis, not what it actually cost.

That being the case,because crude has dropped nearly $10 a barrel in the last few weeks ,we can expect to see a decrease in fuel price at the pump in the near future ?

[Khonwan]

I have today purchased the remaining stock at my local Sahagon of 15-7-18 fertiliser for cassava @B715. The new price is B850. This represents a whopping 19% increase.

[ozzydom]

I have today purchased the remaining stock at my local Sahagon of 15-7-18 fertiliser for cassava @B715. The new price is B850. This represents a whopping 19% increase.

We bought a load of fish food yesterday, and the boss at our local Sahagon told me that the Rabbit brand 16-20-0 that we use in the ponds had gone to 950 bt a bag now.. thats from 590 to 950 in two rises over 2 months = 60% increase.

Hate to think what the 0-46-0 triple Superphosphate we used to use is now,it was 1150 bt a bag 6 months ago.

ozzy

[slapout]

Did anyone notice the article in Bangkok Post yesterday (08/2/08) about fertilizer not being up to spec. Seems the rubber plantations have experienced a drop in latex production which is being blamed on inferior fertilizer, by Thai govt officials. Do not know what they use on rubber farms but this would lead me to question other mixes of fertilizer. The Govt said, to test fertilizer apply to small area and see what results are.??? I am not sure what they intend the farmers to do, wait until production results are in for a small plot, and then fertilize the main crop.??? Thai way of doing things I guess, but if you can believe the newspaper there does appear to be some dodgey fertilizer on the market, probably made in China. Cannot the universities check fertilizer for accurate mix?

[Somtham]

I have today purchased the remaining stock at my local Sahagon of 15-7-18 fertiliser for cassava @B715. The new price is B850. This represents a whopping 19% increase.

We bought a load of fish food yesterday, and the boss at our local Sahagon told me that the Rabbit brand 16-20-0 that we use in the ponds had gone to 950 bt a bag now.. thats from 590 to 950 in two rises over 2 months = 60% increase.

Hate to think what the 0-46-0 triple Superphosphate we used to use is now,it was 1150 bt a bag 6 months ago.

ozzy

Last October we were paying B335 for 20kg of Cargiol 30% protein fish feed. We are now paying B410 for the same feed. A 22% increase. Over the same time period the sales price of our catfish has gone from B33 to B36/kg or a 9% increase. With those numbers we're thinking about giving up...with a 60% increase in feed I'd pull the drain plugs on the ponds!

[slapout]

I think what we are seeing on price increases on any product remotely connected to petroleum is price gougeing by manufactors. If, as one person noted petrolem prices are based on replacement costs, how do you replace a fuel supply which is disappearing, faster than we can find it? This is the same product that 7 years ago was selling for 12. dollar a bbl. There is a lot of Middle east oil that was intially produced for 2. dollars a bbl. I do not believe well production cost has not gone to 90 or 100 dollars on these wells. Refining charges quoted at 3 to 4 dollar a bbl are now using 20. here in Asia. When I see profits in 6 to 8 billion/ qtr from oil companies I feel vindicated in my orginal thought.No I am not anti oil, after working in that sector for more than 30 years, but do get kind of upset with some of the statements made by some of the powers that be, involved in the industry. No I do not have an answer or a solution, but do expect to pay too much for petroleum products, for awhile. Some people blame the funds for getting heavily involved in future markets.

[stoneman]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

The fertilizer we use for the fruit trees and the rubber trees has gone from 550 baht last Aug/Sep to 700 baht last week...That is a little more than a 25% increase in less than 6 months,,

Just bought another 10 - 50kg bags of 20-8-20 fertilizer in Ban Phue this week end...990 baht per bag...

Stoneman

[ozzydom]

Has anybody else noticed the large price hikes in stock food and fertilizer etc lately ?

In one week our fish feed went from 220 baht a bag to 255 baht, 16-20-0 fertilizer I use for greening the ponds went from 590 baht to 850 baht .

I cant see where these kind of increases can be attributed to fuel costs , maybe just an excuse for a bit of profiteering.

If these increases flow on to the end product I can see tough times ahead for the consumers, already Pla Nin supplied by CP to the market vendors are now 60-65 baht compared to 45-50 baht 2 weeks ago.

Could be the reason most pig sty,s are empty at the moment even though pork is at about 48 baht, lots of villagers put suckers in as soon as they finish rice harvest , but this year seems an exception.

Any thoughts ?

The fertilizer we use for the fruit trees and the rubber trees has gone from 550 baht last Aug/Sep to 700 baht last week...That is a little more than a 25% increase in less than 6 months,,

Just bought another 10 - 50kg bags of 20-8-20 fertilizer in Ban Phue this week end...990 baht per bag...

Stoneman

Even the locals are jumping on the band-wagon ,cow-poo up from 300 to 500 a small trailer load.

[torrenova]

I think what we are seeing on price increases on any product remotely connected to petroleum is price gougeing by manufactors. If, as one person noted petrolem prices are based on replacement costs, how do you replace a fuel supply which is disappearing, faster than we can find it? This is the same product that 7 years ago was selling for 12. dollar a bbl. There is a lot of Middle east oil that was intially produced for 2. dollars a bbl. I do not believe well production cost has not gone to 90 or 100 dollars on these wells. Refining charges quoted at 3 to 4 dollar a bbl are now using 20. here in Asia. When I see profits in 6 to 8 billion/ qtr from oil companies I feel vindicated in my orginal thought.No I am not anti oil, after working in that sector for more than 30 years, but do get kind of upset with some of the statements made by some of the powers that be, involved in the industry. No I do not have an answer or a solution, but do expect to pay too much for petroleum products, for awhile. Some people blame the funds for getting heavily involved in future markets.

In theory and allowing for the smoothing of prices over time as opposed to having the price directly linked to the commodities exchange at the pump (now there is a novel idea !) the fuel price would largely follow the crude prices with all other things remaining the same. However, it is the oil companies themselves who internally account for the future cost of ever more expensive exploration and extraction to justify the fairly static price they sell at to retailers.

In days of yore when these companies were largely controlled by families then bumper profits earned today would be retained to smooth future leaner years but with the average lifespan of a CEO ever decreasing and with both hedge funds and private investors wanting ever increasing dividends, the pressure to declare profits as they are earned is very high.

[allcladrad]

My palm tree food went from 680 for 40keys to 880 and two weeks later went to 900. No reason given A lesser known brand went from 670 to 700, which is the brand I am now using. What seems odd to me is that fertilizer is on the Thai protected list along with about 14 other products. The list was designed to protect the poor and increases needed to be approved by the government.

Is it possible that the new "business as usual" government is paying back their financial backers? Or was the junta freezing prices? Inflation is sprialing on almost every product. My area land prices have more than doubled in 3 years. Beer from 225 to 320 and cement from 107 to 133.