December 22, 2009

 

Thai pig imports overwhelm Cambodia's swine industry

 

 

Hundreds of pig farms in Cambodia have closed down after surging pig imports from Thailand forced down prices, prompting for the call to reduce import quotas.

 

Authorised imports had surged over the last two years as importers filled a daily import quota of 800 pigs, said Curtis Hundley, chief of party for the USAID's Cambodia MSME Strengthening Project.

 

The increase, from an estimated 2,000 Thai pigs in 2007 to 300,000 in 2008 and 2009, has caused the closure of hundreds of pig businesses in Cambodia, he said.

 

The estimates did not include unregulated imports from Thailand and Vietnam.

 

Pig farmers have called for the government to cut import quotas by up to 50% to reduce supply and stimulate pork prices. However, the director general of Cambodia's Animal Health and Production Department raised concerns whether local producers could meet domestic demand.

 

The director general said there is a daily shortage of pigs in the market, as local producers do not have the ability to raise enough pigs to meet current demand. A lack of foreign competition could also force prices beyond the means of ordinary consumers.

 

Pig farmers want to sell at a high price while buyers want low prices, so Cambodia has to import pigs to keep prices stable on the market, he said. 

 

Pork was retailing for KHR15,400 (US$3.71) per kilogramme in and around Phnom Penh last Thursday, down 3.75% from January 1, according to Ministry of Commerce data.

 

Kampong Cham province slaughterhouse trader Ting Vothy called for the government to develop a province-by-province system of duties on pig imports that would take into account local supply and demand issues.

 

He also drew attention to the practice of charging unofficial fees to people transporting pigs at checkpoints set up along the road and called for government action to stamp out the practice.

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