Encouraging more soybean crushing capacity and opening up new export markets for soybean meal will help dampen the rising price of vegetable oil, said Supachai Vitayatanagorn, Thai Vegetable Oil Plc (TVO) executive vice president.

Mr Supachai said that lifting the government- imposed ban on soybean meal exports would result in a win-win scenario, with increased exports resulting in cheaper prices for vegetable oil consumers in the short term, and long-term gains for local crushers seeking to boost production.

Instead of trying to suppress vegetable oil prices locally, the Thai government should be helping the industry create a more stable vegetable oil supply, he added.

The country has banned soybean meal exports. This however has put a lid on local crushing capacity which is running at only 60%. What’s more, vegetable oil exports account for only 10-15% of the total capacity.