Pornthiva rejects soybean meal import

BANGKOK, 1 November 2009 (NNT) – Commerce Minister Pornthiva Nakasai has given the green light to imports of animal feed ingredients including maize and fish meal but has rejected imports of soybean meal due to unsettled import tax problems and fear of effects to meat prices.

Speaking after a meeting of the Food Policy Committee, Ms Pornthiva said the meeting resolved to approve imports of maize and fish meal as proposed by a subcommittee overseeing animal feed. However, the import of soybean meal was rejected, and the subcommittee hence was given the task of studying effects on meat prices and present the result to the meeting again next week. If agreed upon, the result will be presented to the Cabinet, after which import permission for 2010 will be announced.

The Food Policy Committee decided to turn down the request for soybean meal due to unsettled import tax. The private sector earlier proposed revision on soybean meal import tax to 0-1%. The rate was revised down from 4% to 2% in 2008; however, the committee found that the price of animal feed did not fall in line with the reduction in import tax of animal feed ingredients.

The subcommittee overseeing animal feed has set the criteria for imports of three animal feed ingredients, including soybean meal, maize and fish meal, for next year. The policy is similar to this year’s, with no limits to the amount of soybean meal imports. However, importers must pay a 2% tax and buy local soybean seeds in the same amount as imported quantity. The Swine Raiser Association of Thailand is also added to the list of importers, raising their number to eight totally.