Vatchari Vimooktayon, director general of the Internal Trade Department, said feed producers had to lower their prices following a reduction in raw material costs, reports The Nation of Thailand.

She said: "To ensure fairness for feedmeal producers, livestock farmers and consumers, the ministry will set up a monthly meeting to consider feedmeal price adjustment in accordance with changing production costs."

According to the ministry, prices of raw materials for feed meal have dropped by 0.65 per cent over the past two years. The price of soybean meal decreased from 17 baht (THB) a kilogram to THB12.74 last month.

The ministry will announce a price list for feed meal as soon as possible, so that enterprises do not sell at a level higher than the prices set.

For a 30-kg bag, the current prices are chicken feed, THB519; layer hen feed, THB444 and pig feed, THB489.

If enterprises do not comply with the ministry's order, it will enforce the law governing goods and services price control to force them to do so, said Ms Vatchari.

Pornsilp Patcharintanakul, president of the Thai Feed Meal Association, said producers would agree to lower their prices if the ministry promised to allow a price increase within one week if they faced higher production costs.

He added: "Indeed, the prices of feedmeal raw materials are [likely to be] on the rise soon. Soybean meal, the price of which has dropped significantly, accounts for only 20 per cent of the feedmeal ingredients. The government must agree to allow price increases within a short time if producers face higher costs of production."

He said feed producers would agree to lower their prices in accordance with the ministry's instruction.

According to The Nation, 52 association members have so far agreed to cut their retail prices next week.