April 3, 2012

Thailand's pork prices may go up soon

As pork raisers will be allowed to raise the pork price, consumers will soon have to spend more on food again.

According to Internal Trade Department Director-General Watcharee Wimuktayon, the newly-appointed committee tasked with overseeing the pork pricing system will call a meeting next week and pork price adjustment is likely to be a topic of discussion.

Watcharee explained that pork price rise should help relieve financial burdens of pig raisers, particularly the small ones who have to shoulder losses. Live pigs are sold for THB55 (US$1.79) per kilogramme even if the cost of raising a pig is estimated at THB62 (US$2) per kilogramme. At some markets, a kilogramme of pork is offered at THB120-130 (US$3.9-4.2) despite the fact that the control price is between THB105-110 (US$3.4-3.57).

In its medium-term solutions, the Internal Trade Department is seeking an allocation of THB1.5 billion (US$48.7 million) in the fiscal 2013 budget to stabilise prices of major agricultural products including pork, palm oil and eggs. The Department may specify the highest and the lowest prices of these staple foods to make sure that both producers and consumers are treated fairly.

In the long run, pig cooperatives will be registered in order to upgrade the farming system. To boost the competitive edge, they will also be urged to turn to a full-cycled farming system so that they can be financially stronger and that the consumers can buy pork at an affordable price.