Feed-meal Makers To Get Go-ahead To Raise Prices

[Khonwan]

Feed-meal makers to get go-ahead to raise prices

By Petchanet Pratruangkrai

The Nation

Published on July 7, 2008

Increases will be phased in, says Internal Trade Dept

Feed-meal producers will soon be finally allowed to hike prices to

offset rising production costs, with shrimp and pig feed getting first priority.

"The department found that these products face higher costs for raw materials. The Commerce Ministry will allow retail prices to go up soon," Internal Trade Department director-general Yangyong Phuangrach said last week.

The department will finalise the list of types of feed meal on Friday, he said, adding that the new prices would be gradually implemented to give both consumers and farmers more time to adjust.

Feed-meal producers have been asking for permission to raise prices since the costs of raw materials, including soybean meal and powdered fish, shot up last year.

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.

Animal-feed producers have several times asked for price hikes, citing costs of raw materials that have escalated by 38 to 118 per cent.

For instance, the price of powdered fish rose from Bt20.30 per kilogram last year to Bt28.43 in May. In the same period, maize increased from Bt7.47 a kilo to Bt9.23, while soybean meal went up from Bt10.30 a kilo to Bt16.5.

The feed meal association and the department will conduct a special promotion for particular products to help poor farmers.

Meanwhile, manufacturers of consumer goods will turn their backs on the government's cheap-price project because the government does not allow them to increase retail prices even thought their costs have skyrocketed.

"The government has organised too many trade fairs all over, which has caused a double burden for us to send a team to join each event," a private-sector source said.

Costs of manufacturing and transportation have climbed up gradually due to higher fuel costs but producers could not raise retail price due to the price-control polices, the source said.

The Internal Trade Department will restructure by setting up a retail bureau to oversee the retail business as well as continue holding activities to help consumers fend off inflation.

A senior source at the department said the ministry would set up a retail bureau to be fully responsible for the retailing business, which would also involve supporting the retail and wholesale business law's implementation to ensure that retail businesses will be managed based on fair regulations.

http://www.nationmultimedia.com/worldhotne...newsid=30077416

[fruity]

Feed-meal makers to get go-ahead to raise prices

By Petchanet Pratruangkrai

The Nation

Published on July 7, 2008

Increases will be phased in, says Internal Trade Dept

Feed-meal producers will soon be finally allowed to hike prices to

offset rising production costs, with shrimp and pig feed getting first priority.

"The department found that these products face higher costs for raw materials. The Commerce Ministry will allow retail prices to go up soon," Internal Trade Department director-general Yangyong Phuangrach said last week.

The department will finalise the list of types of feed meal on Friday, he said, adding that the new prices would be gradually implemented to give both consumers and farmers more time to adjust.

Feed-meal producers have been asking for permission to raise prices since the costs of raw materials, including soybean meal and powdered fish, shot up last year.

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.

Animal-feed producers have several times asked for price hikes, citing costs of raw materials that have escalated by 38 to 118 per cent.

For instance, the price of powdered fish rose from Bt20.30 per kilogram last year to Bt28.43 in May. In the same period, maize increased from Bt7.47 a kilo to Bt9.23, while soybean meal went up from Bt10.30 a kilo to Bt16.5.

The feed meal association and the department will conduct a special promotion for particular products to help poor farmers.

Meanwhile, manufacturers of consumer goods will turn their backs on the government's cheap-price project because the government does not allow them to increase retail prices even thought their costs have skyrocketed.

"The government has organised too many trade fairs all over, which has caused a double burden for us to send a team to join each event," a private-sector source said.

Costs of manufacturing and transportation have climbed up gradually due to higher fuel costs but producers could not raise retail price due to the price-control polices, the source said.

The Internal Trade Department will restructure by setting up a retail bureau to oversee the retail business as well as continue holding activities to help consumers fend off inflation.

A senior source at the department said the ministry would set up a retail bureau to be fully responsible for the retailing business, which would also involve supporting the retail and wholesale business law's implementation to ensure that retail businesses will be managed based on fair regulations.

http://www.nationmultimedia.com/worldhotne...newsid=30077416

My supplier told me Saturday to expect 20-25 baht per bag increase as a start from sometime this week!.............Combine this & inevitable further increases to prices which have already risen around 100 baht bag in the last 12 months & one wonders how anyone can adjust / make any money?

[ozzydom]

Feed-meal makers to get go-ahead to raise prices

By Petchanet Pratruangkrai

The Nation

Published on July 7, 2008

Increases will be phased in, says Internal Trade Dept

Feed-meal producers will soon be finally allowed to hike prices to

offset rising production costs, with shrimp and pig feed getting first priority.

"The department found that these products face higher costs for raw materials. The Commerce Ministry will allow retail prices to go up soon," Internal Trade Department director-general Yangyong Phuangrach said last week.

The department will finalise the list of types of feed meal on Friday, he said, adding that the new prices would be gradually implemented to give both consumers and farmers more time to adjust.

Feed-meal producers have been asking for permission to raise prices since the costs of raw materials, including soybean meal and powdered fish, shot up last year.

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.

Animal-feed producers have several times asked for price hikes, citing costs of raw materials that have escalated by 38 to 118 per cent.

For instance, the price of powdered fish rose from Bt20.30 per kilogram last year to Bt28.43 in May. In the same period, maize increased from Bt7.47 a kilo to Bt9.23, while soybean meal went up from Bt10.30 a kilo to Bt16.5.

The feed meal association and the department will conduct a special promotion for particular products to help poor farmers.

Meanwhile, manufacturers of consumer goods will turn their backs on the government's cheap-price project because the government does not allow them to increase retail prices even thought their costs have skyrocketed.

"The government has organised too many trade fairs all over, which has caused a double burden for us to send a team to join each event," a private-sector source said.

Costs of manufacturing and transportation have climbed up gradually due to higher fuel costs but producers could not raise retail price due to the price-control polices, the source said.

The Internal Trade Department will restructure by setting up a retail bureau to oversee the retail business as well as continue holding activities to help consumers fend off inflation.

A senior source at the department said the ministry would set up a retail bureau to be fully responsible for the retailing business, which would also involve supporting the retail and wholesale business law's implementation to ensure that retail businesses will be managed based on fair regulations.

http://www.nationmultimedia.com/worldhotne...newsid=30077416

My supplier told me Saturday to expect 20-25 baht per bag increase as a start from sometime this week!.............Combine this & inevitable further increases to prices which have already risen around 100 baht bag in the last 12 months & one wonders how anyone can adjust / make any money?

My thoughts when I read this report in the Nation were , if prices were pegged in 2004 where did the 30-50% rises come from in the last 12 months.?

[slapout]

I have asked the same question. The Thai govt seems to have pegs on farm feed, transportation, various food products, shampoo, electric, etc. The local songtahs in CM raised prices by 33% several months ago without authorization. Markets are selling pork for more than the govt peg. I mentioned this to my TW and she just shrugs and says go to the local open air market, its cheaper, argue with songah driver over 5 baht etc. We came to an agreement she buys veggies, fruit, etc there but meat products are to come from a more hygenic place. She is up north working with new rice crop and I am sure she will be bitching about price for weed killer, fertilizer, etc when she gets back. We buy a lot of it in CM as price in village is marked up from peg price. I am still trying to convience her that we could have livestock on farm to butcher for personal use but she makes a pet of all creatures. I noticed the govt and rice brokers are in a debate about the PM's proposal to peg what farmers get for rice. The next year maybe be one we will not forget.