November 28, 2007

 

Thai hog farmers call for price supports, lower tariff on feed

 

 

Hog farmers in Thailand are urging the government to set up a scheme to buy their animals higher than market prices and reduce tariff on imported pig to ease rising production costs amid the skyrocketing prices of oil.

 

The farmers also demanded that pork be delisted as a price-controlled commodity.

 

Swine Raisers Association of Thailand chairman Surachai Sitthitham and farmers leaders held talks with government representatives from the Ministry of Commerce and the Agriculture and Cooperatives Ministry after protesting at Government House this week as they were being affected both by higher production costs and the reduced purchasing power of consumers.

 

According to Surachai, average production cost for a standard-size pig is now on average Bt4,542 (US$145.57) but farmers can only realise Bt3,800 (US$121.79) when selling it. He added farmers can't get their investment back at current controlled prices.

 

The farmers called on the government to set up a Bt200 million fund to buy 45,000 swine at Bt4,500 each for slaughtering and for cold storage.

 

Farmers also called for a cut on the tariff on imported swine feed such as soy and corn from four percent to zero.

 

Thailand import pig feed from Laos, Cambodia and Vietnam and trade live hogs as well as pork with the neighbouring countries.

 

The farmers also called on the government to lift the ceiling on pork prices and to remove it from the price list of controlled goods, but the Ministry of Commerce said it needed to continue to control the price of pork to shoulder the consumer burden.

 

The government, in turn, has promised to ask the finance ministry to source funding in response to the farmers' demand as well as setting a new policy to resolve the problems.

 

US$1 = THB31.200 (as of November 27)