February 20, 2008

Thailand to review pork retail price
 

There will be a review on rising pork prices and a new retail price-calculating format when representatives from the pig industry meet up with the Commerce Ministry this year.

The current formula for retail price is that it is double that of farm price, and plus two baht per kilogram. The Internal Trade Department suggests that the retail price be equivalent to the farm price by 80 percent.

The department has no capped prices for pork, but by revising the retail price calculation, it indicates the department understood that operators have to reduce their prices.

Participants would include Charoen Pokphand Foods and Betagro Group, which controls about 55 percent of domestic pork sales and production, according to Yanyong Phuangrach, director-general of the Internal Trade Department.

Last week, the department approved an increase in farm price of pork, which caused retail price to be driven up.

The price increase is blamed on rising production costs and a low supply of pigs caused by a diarrhoea outbreak that killed about 500,000 pigs.