THAILAND- Thailand’s leading feed manufacturer, Charoen Pokphand Foods Public Co. Ltd. (CPF), has expressed its approval of the recent decision by the Thai government to ease the importation of soybean meal into the country.
Led by Prime Minister Srettha Thavisin, the administration’s move is expected to support the nation’s livestock producers and bolster the Thai economy.
Rewat Hathaisattayapong, head of the feed business at CPF, hailed the government’s strategy shift, emphasizing its positive impact on the agricultural sector.
He highlighted CPF’s commitment to farmers, citing discounts on animal feeds and additional incentives for broiler chicken rearers. These measures, he said, underscore CPF’s dedication to supporting the backbone of Thailand’s agricultural industry.
The government’s decision, approved in late December, includes several policies regarding the importation of key feed ingredients such as corn, soybean meal, and fish meal.
Import permits will now be granted for one year instead of three, aiming to ensure fair prices for domestic producers while meeting the demand for these raw materials.
Under the new policy, the tariff rate for authorized importers remains at 2% for volumes within the quota. However, the tariff rate for out-of-quota shipments is set at 119%. Import conditions under existing trade agreements remain unchanged.
Despite domestic production, which amounts to 4.9 million metric tons of corn, 2 million metric tons of soybean meal, and 300,000 metric tons of fish meal annually, local output falls short of meeting Thailand’s demand.
The country requires 8.4 million metric tons of corn, 4.2 million metric tons of soybean meal, and 600,000 metric tons of fish meal.
In another significant development, CPF subsidiary Bangkok Produce Merchandising Public Co. Ltd. (BKP) recently partnered with Louis Dreyfus Co. (LDC) to enhance traceability in the soybean supply chain.
The collaboration aims to achieve more sustainable and deforestation-free supply chains by utilizing satellite mapping solutions and traceability data points. This agreement covers soy products from LDC in Brazil, destined for several Asian countries where BKP and CPF operate.
The partnership between CPF and LDC reinforces commitments to decarbonization and sustainability in the food chain. The parties plan to explore further system integrations compatible with international sustainability standards, including the EU Deforestation Regulation, the Round Table on Responsible Soy, the International Sustainability & Carbon Certification, and ProTerra standard.
CPF, ranked third among the world’s largest animal feed companies with an annual production of 17 million metric tons, continues to promote sustainability in the agricultural sector. In 2023, CPF introduced a corn traceability system to ensure sustainability from field to feed mill.