Phet Nantavisai, Chief Operating Officer of Thaifoods Group Public Company Limited (SET: TFG), disclosed to “Kaohoon” that the core aspects of the latest trade framework agreement between the United States and Thailand—which includes reducing and lifting customs tariffs, as well as a major trade cooperation agreement between the private sectors of both countries—continue to be viewed positively by TFG.
Regarding the reduction and elimination of customs tariffs, Thailand will remove tariffs on approximately 99% of goods from the U.S., covering a full range of food and agricultural products. Meanwhile, the U.S. will maintain a 19% duty on goods originating from Thailand.
Furthermore, the significant trade cooperation agreement between the two countries’ private sectors—such as annual agricultural imports (including animal-feed corn, soybean meal, and dried grains) valued at about $2.6 billion—will result in more animal-feed ingredients entering Thailand, potentially helping with cost management.
Previously, TFG told “Kaohoon” that expanding quotas for agricultural imports from the U.S.—such as corn, barley, and soybeans—to support Thailand’s animal feed industry is seen as very positive for the country’s livestock sector. It would lead to lower costs for both chicken and pork production, while also improving Thailand’s competitiveness and enabling increased exports in the future.
At present, around 70% of TFG’s total production costs are attributed to animal feed. The company principally imports two raw materials—corn and soybean meal—with soybean meal mainly sourced from South America. However, following the recent tariff negotiations with the U.S., there is now a higher likelihood of importing from the U.S.
Regarding corn, Thailand does not allow permanent imports but permits imports during specific periods, such as from February to August each year—when domestic production is unavailable. During that window, imports are sourced from neighboring countries such as Myanmar, Cambodia, and Laos. Generally, TFG primarily uses domestically produced corn. Allowing imports from the U.S. would help lower both the cost and price of domestic corn.
