Bangkok: Egg and pig farmers are opposing the policy of guaranteeing the purchase price of animal feed corn, which currently guarantees a domestic price of 3 parts corn to 1 part imported wheat (3 to 1 ratio). They are requesting a change to reducing production costs instead.
According to Thai News Agency, Ms. Chuthamas Boonsang, President of the Mae Nam Noi Basin Egg Laying Chicken Farmers' Cooperative, has urged the government to review the assistance structure for corn farmers. She argues that the existing system, which guarantees a domestic purchase price of 3 parts corn to 1 part imported wheat (3:1 ratio), should shift its focus to reducing production costs. Ms. Chuthamas claims that the current method does not truly benefit corn farmers and instead places a financial burden on livestock farmers who depend on feed mixes.
Ms. Chuthamas highlighted that the purchase price often fails to reach the actual farmers, benefiting primarily middlemen. Small-scale farmers are forced to sell their produce in advance to secure funds, only to face deductions for moisture content upon harvest. Middlemen purchase corn and sell it in the market at inflated prices, reaching 13 baht per kilogram. Egg farmers, who rely heavily on corn, have no choice but to purchase it even at such high prices. This situation has led to increased production costs for eggs, making them less competitive, especially against Malaysian imports, which benefit from global corn prices of 5-6 baht per kilogram.
Reports from the National Swine Breeders Association reveal that Thai swine breeders also oppose the policy, arguing it burdens the livestock sector by guaranteeing the price of animal feed corn for traders. They claim this has resulted in losses for three consecutive years and a debt burden for price guarantees for collectors. The association believes the government should instead utilize national budget funds to guarantee prices.