March 27, 2014

Thailand's pig board maintains price at same level amid supply shortage

In a bid to put a lid on the soaring pork prices caused by shrinking supply, Thailand's Pig Board has announced that it is maintaining the farm price of pigs at THB76-78 (US$2.33-2.40) per kilogramme until April.

Deputy Prime Minister and Minister of Agriculture and Cooperatives Yukol Limlaemthong indicated a possible on-year decline by 10% in swine output this year, with about 15.8 million pigs being sold to the market. At present, 40,000 pigs are consumed in Thailand on a daily basis, whereas only 38,000 pigs can be supplied, prompting the price to rise. To make the matter worse, the production cost has also edged up from THB62 (US$1.90) a kilogramme to THB65 (US$2).

Yukol attributed the output contraction mainly to the intensifying summer heat, which had led to a slowdown in pigs' growth. Another important factor is the outbreaks of porcine reproductive and respiratory syndrome (PRRS) and porcine epidemic diarrhoea (PED) among piglets.

The Deputy Prime Minister revealed that, during the Pig Board meeting, a decision was made to freeze the price of live swine at THB76-78 (US$2.33-2.40) per kilogramme until the end of April. As a result of the price retention measure, the retail price of pork is expected to hover around THB150-155 (US$4.61-4.76) a kilogramme.

After April, the price of pigs has a tendency to climb further due to more expensive feed. Under the circumstance, the Pig Board will meet again to hammer out assistance measures for pig farmers.