December 11, 2007

Thailand pig farmers duel with skyrocketing feed prices

With soymeal prices up by 50 percent and corn up by 10 percent, Thailand pig farmers are in a grueling phase of high feed prices and fixed selling price.

The production cost has increased THB500 (US$16.44) per 100-kilogramme pig. The slowing economy reduced the consumers' purchasing power for pork by 15-20 percent, while the Internal Trade Department has frozen the price for pigs at the farm door at THB45 (US$1.48) per kg.

Yanyong Phuangrach, director-general of the Internal Trade Department, said there are about 117,000 pig farmers in Thailand, and the government should allow them to import cheaper feeds from neighbouring

countries, such as Laos.

Yanyong also urged pig farmers to decrease their production costs as the price of commodities is likely to gradually increase. One of the strategies to lower farmers' costs is to balance supply in line with the demands of the market to prevent the pig price dropping.

The Thai Animal-Feed Manufacturers' Association has recently agreed to freeze its prices to help pig and other livestock farmers.

Pornsilp Patcharintanakul, president of the association, said despite the trend of rising prices for animal-feed, the association would try to keep the price frozen as long as possible.