Thailand to Import 1 Million Tons of US Corn to Cut Livestock Costs

Bangkok: The Thai Livestock and Aquaculture Federation, in collaboration with four other livestock associations, has announced the decision to import 1 million tons of corn from the United States.

According to Thai News Agency, this move aims to reduce livestock costs and decrease PM2.5 pollution levels, while asserting that it will not negatively impact domestic corn farmers. The Federation highlighted that Thai corn is currently priced at 13 baht per kilogram, making it the most expensive in the world. They also addressed concerns about GMOs, reassuring that global standards have been in place for over three decades without posing health risks.

The Federation, alongside its partner associations, held a press conference to explain the rationale behind the importation of US corn, facilitated under the World Trade Organization (WTO) framework. Mr. Pornsap Patcharintanakul, President of the Thai Feed Manufacturers Association and Secretary-General of the Federation, outlined two primary reasons for the import: the need to mitigate the impact of US tariffs and the substantial reliance of the livestock sector on imports. He noted that Thailand's annual requirement of animal feed corn is 9 million tons, while domestic production only meets 5 million tons, leaving a shortfall of 4 million tons.

Currently, Thai animal feed corn prices have soared to over 13 baht per kilogram, attributed to stricter government import controls and adverse weather conditions affecting domestic production. Mr. Patcharintanakul emphasized the need for the government to review import measures to ensure fairness for the livestock sector, given the inverse relationship between corn prices and meat prices.

The president further explained that while alternative raw materials like unmilled rice, broken rice, rice bran, and cassava are already in use, they cannot fully replace corn due to limitations in meeting nutritional requirements, safety concerns, and market demand. For example, corn provides essential pigments for laying hens, which other materials lack, necessitating the addition of synthetic pigments and increasing costs.

Industry representatives suggest that importing competitively priced US corn could reduce feed production costs, benefiting both livestock and fisheries industries, and lowering protein product prices for consumers. Additionally, importing US corn could help address environmental issues like PM2.5 pollution and aligns with a trend towards low-carbon agricultural production.

On the topic of GMOs, the Federation assured that GMO crops, including soybeans, have been safely used in Thailand's food and animal feed industries for over 30 years. They refuted claims that GMO imports are responsible for the reduction in soybean cultivation area, citing climate, seed quality, and economic viability as more significant factors.

The Federation has indicated that if there is no response from the Ministry of Commerce, they plan to meet with the Minister of Commerce soon to discuss the issue further.