April 29, 2009

Thailand major meat processors - Betagro and Charoen Pokphand Foods - have launched emergency measures to shield consumers from the swine flu outbreak, according to local media reports.

 

The Thai government and concerned agencies have imposed additional protection measures to prevent the possible spread of the swine-flu virus.

 

The government is also urged to provide more details of the disease for better public understanding.

 

Betagro Group executive vice president Nopporn Vayuchote said emergency measures had been implemented at the group's farm since on Monday (Apr 27), adding that the group has upped its concentration on a stringent biosecurity system.

 

Major pig-farming provinces in Thailand are Ratchaburi, Nakhon Pathom, Kanchanaburi, Chon Buri and Chachoengsao.

 

The country's pig production reaches around 12 million valued at THB70 billion and 70 percent of the production is managed under closed-operation farms.

 

Betagro's pork business accounts for 4 percent of its sales and export volumes reached an average of 8,000 tonnes per year.

 

Nopporn said the swine-flu outbreak would not affect the company's exports because they are processed products.

 

However, the price of a live pig at the farm door remained unchanged at THB60 per kilogram due to an earlier sharp decline in piglet numbers.

 

Despite the swine flu outbreak, the Department of Internal Trade (DIT) reported that the price of pork had increased continuously this month following a lower number of piglets being bred and high feed-meal costs.

 

Pork is at THB120-THB135 a kilogramme at the fresh market, 15 to 20 percent higher from the THB113 price registered last year.

 

DIT director-general Yangyong Phuangrach said higher pork price was due mainly to lower numbers of piglets and high costs of feeding, but is expected to drop slightly soon due to a greater supply of pigs after the dry season.

 

Yangyong explained that the domestic pork price should not drop dramatically because of the fear of a swine-flu outbreak overseas, as 100 percent of the nation's pigs are fed in the country.

 

According to DIT, swine-feeding is expected to drop from 11.7 million pigs to 11.4 million this year. Normally, Thais consume 10 million to 10.5 million pigs per year, while the remainders are exported.

 

The cost of pork feed is 20-30 percent higher than the same period last year.

 

Meanwhile, the outbreak is benefiting other meat producers. Nopporn said the price of chicks had abruptly increased by THB1 per animal on Monday (Apr 27).

 

Other kinds of meat are expected to see adjusted prices as consumers shift to what they perceive as safe foods. Chicken was quoted at THB56-THB58 per kilogramme last week, but was adjusted to THB58-THB60 on Monday.

 

University of Thai Chamber of Commerce's Economic and Business section director Thanawat Polwichai said swine flu would have an adverse impact on Thailand's exports as outbreak areas are restricted.

According to Capital Nomura Securities, shares of Thai Union Frozen Products, the world's second-biggest canner of tuna, and poultry producer GFPT climbed in Bangkok on speculation that an outbreak of swine flu will boost demand for alternatives to pork products.

                          

US$1 = THB35.102 (Apr 29)