“Incentives for animal farmers” that the state should take care of

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By salika -March 3, 2022

Management of agricultural prices in the past have seen the state use “fixing the selling price” at the destination for the reason that to reduce people’s cost of living which seems to be a solution to the problem at the root cause and pass the burden on to the manufacturers of that product ,Take the risk of loss Becomes a problem tucked under the carpet and accumulate as a long-term problem.

For example, the fixation of meat sales prices that the government considers only the final selling price, such as requiring chicken farmers to sell chicken meat at a price of 40 baht/kg. or sell eggs for only 2.90 baht/egg (at 28 February 2022) that if farmers’ costs were lower, there would be no problem. But what if it’s not? because it is now known that The price of all animal feed ingredients continues to rise. When the world faces the crisis of the Ukrainian war. The prices of many raw materials have skyrocketed such as wheat, soybean and maize.

If the destination price fixation for such a product remains would affect the cost of production As a result, farmers or meat producers have to close their businesses or reduce production. The meat industry is facing this loss. It is different from the loss of conventional production labor. This is because it is a labor intensive manufacturing sector and can create added value. Under constant work, so if there is no “profit” to create incentives for production or take risks. It will bankrupt this livestock industry.

Do not forget that livestock products are the main drivers of the agricultural economy that can add value to the country’s main products. Policies that appeal to certain groups of farmers, such as crop groups or groups that live upstream without considering the linkage of products along the chain This will cause unfairness to midstream and downstream producers, which becomes a “hurdle” dragging the development of the meat economy.

Therefore, price fixing is not a solution to the problem because it caused the instability in production which deal greatly increased damage and will reduce the competitiveness of labor and technology. Do not forget that the animal production sector, It is a production that requires technology, labor skills, hygiene assurance. Just like the general industry, so the product price should really reflect the cost. It is not a product insurance price in the agricultural sector. Bringing together cultivation, processing goods to add value point out that this policy burdens the farm, so the selling price should be reflected in the cost plus motivated rewards and taking into account changes in consumption rates. This means that the supply-demand principle is the driving force.

Another issue is agricultural commodity price supervision should be created as the same platform of investment products from upstream, midstream and downstream by considering the industrial cluster production base more than price insurance that applies to agricultural products. Which has agreements with farmers, farms and wholesale networks. The average weight of the value added volume (from the ability to produce and produce results) is production-investment-distribution must be taken into account from farmers who grow field crops, gronomy , animal feed mills, animal farm, butcher or wholesaler. Then let’s look at the number of added value creation. In labor or the technology of each production joint. After that, it can proceed to production not letting the production develop, according to the fate or intervene and affect the meat.

Therefore, the approval of investment, production must be on the terms of a production cluster agreement. This will allow the industry to move forward in a sustainable manner and cause progressive production development and promote competitiveness. Taking into account the production area of each area. In which the state has only the duty of a committee in ensuring that each party complies with the terms of the meat industry cluster agreement. It is not a duty to set the price control. or freeze the selling price as it is.

Story : Associate Professor Dr. Chinnasak Suwanatchariya

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