March 29, 2012

Taiwanese pig farmers fear bankruptcy

The pig farmers of Taiwan are concerned that about 50% of hog farmers will face bankruptcy by October 2012 due to the country's falling pork prices, informed Taiwan's Official Central News Agency, quoting representatives from the hog sector on Tuesday (Mar 27).

The mechanism launched by the Council of Agriculture (COA) to control the number of hogs auctioned in the market can only help raise future hog prices, not the current prices, said Chang Wen-shan, chairman of the Pingtung County Hog Farmers Association.

He estimated that due to the slow cycle of the hog industry, it will take at least 14 months before hog prices start picking up, the news agency said.

His comments came after Agricultural Minister Chen Bao-ji said last Tuesday at a legislative session that the COA will help return the hog price to a base level of TWD6,500 (US$219) per 100 kilogrammes. Chen also said the agency will immediately increase the hog inventory to 9,000 heads and inspect pig farms across the country to control hog supply.

Yen Chen-tou, chairman of the Tainan City Hog Farmers Association, said domestic auction price for hogs currently stands at TWD5,000 (US$169) per 100 kilogrammes, while in China, price is TWD7,000 (US$237) per 100 kilogrammes.

He urged the government to promote exports of pork to China to help offset a glut of pork in the domestic market, the news agency reported.