Thailand Cancels 600,000-Tonne Feed Corn Import Plan as Domestic Harvest Arrives
Thailand has cancelled a plan to import 600,000 tonnes of feed corn from neighbouring countries after deciding domestic supplies remain sufficient. A separate 120,000-tonne US shipment remains within an existing quota, while livestock producers are pressing for changes to policies they say inflate feed costs.
Regional import plan withdrawn
Thailand’s Public Warehouse Organization has cancelled a proposal to import 600,000 tonnes of feed corn from neighbouring countries after the Ministry of Commerce concluded that the additional supply was not currently necessary. The decision is intended to support domestic corn prices as the country’s harvest enters the market.
According to Thansettakij, the proposal was developed after floods and flash floods affected Nan province and nearby areas from around August 18. The affected region has approximately 400,000 rai of planted land and is an important centre for collecting and blending feed corn. Officials initially feared that flooding could spread to neighbouring provinces and reduce production, but a subsequent assessment by the ministry, the Feed Corn Policy and Management Committee and the Public Warehouse Organization led to the plan’s cancellation.
US shipment remains under existing quota
The ministry separately clarified that a planned 120,000-tonne shipment from the United States, expected to arrive around December, does not constitute a new import quota. Department of Internal Trade Director-General Wittayakorn Maneenetr said the volume falls under the existing 3:1 feed-material regime, which requires companies to purchase three parts of domestic corn for every one part of wheat imported.
The committee had previously allowed up to 1 million tonnes of US corn to be included within that framework. Thansettakij reported that past imports exceeded 900,000 tonnes, while approximately 500,000 tonnes of import capacity remained before news emerged of the additional 120,000-tonne shipment. More than 380,000 tonnes also remained under conditions carried over from the previous year. Feed manufacturers agreed to delay further imports until after more than 80% of Thailand’s domestic crop has reached the market. Authorities said they would monitor purchasing factories and investigate attempts to depress farmgate prices.
Livestock producers seek policy reform
The cancellation protects growers during the harvest, but Thailand’s livestock sector argues that the wider policy raises feed costs without delivering the intended benefits to small corn farmers. Bangkok Biz News cited egg-farmer cooperative chair Juthamas Boonsaeng as saying that many growers lack capital and storage, forcing them to sell production forward to intermediaries. Corn harvested during the rainy season can contain 30-38% moisture and may fetch only 5-6.50 baht per kilogram, compared with the guaranteed price of 9.80 baht at 14% moisture. The equivalent benchmark at 30% moisture is 7.05 baht. After the harvest, when traders control much of the supply, prices can rise to 12-13 baht per kilogram.
Feed represents more than 60% of egg-production costs, making corn prices a direct pressure on poultry margins. Juthamas said Thailand produces only 4.5 million tonnes of corn. Full application of the 3:1 rule would provide eligibility to import 1.5 million tonnes of wheat, leaving combined material availability at 6 million tonnes and a shortfall of 3-4 million tonnes. She contrasted Thai costs with Malaysia and Vietnam, where imported world-market corn is available at roughly 5-7 baht per kilogram. Livestock groups want the government to replace price guarantees with support for fertilizer, crop-protection products, seed and fuel through welfare cards, and to review the 3:1 regime. The National Swine Raisers Association has also opposed transferring the cost of corn-price support to livestock producers after three consecutive years of losses, arguing that any guarantee should instead be funded from the state budget.
