October 30, 2007

Thailand to put a hold on pork prices for next six months

Thailand's Commerce Ministry has 'requested' pork vendors to maintain their prices for at least six months, a senior ministry official said on Saturday.

Violators will be jailed or fined or both, said Yanyong Phuangrach, director-general of the Internal Trade Department.

The move was made to curb rising inflation in Thailand and to aid consumers.

Yanyong noted that there had been no recent changes to retail pork prices had but his department is urging pork traders to maintain prices for at least six months. Rising feed prices could strengthen the impetus from pig farmers to raise prices however.

Yanyong also spoke on the decision by Thai President Foods, manufacturer of Mama instant noodles, to raise prices from Bt1 to Bt6 a packet from December 1.

Yanyong said although his Department had not yet received a request from the company, he would urge the government to seek ways to cut costs rather than pass the cost on to consumers.

He also urged the company to maintain the current price of its instant noodles until the end of the year.

Meanwhile, Charoen Phokphand Foods, the largest food retailer in the country is expected to air a local TV campaign to clean up the negative perception of Thai pork at home and abroad in the next few months.