April 28, 2012

Taiwan's agriculture council aims to lower pork prices

The Council of Agriculture (COA) of Taiwan started a pork promotion scheme on Tuesday (Apr 24), offering 20% discount on frozen products to aid in driving down pork's retail price.

A total of 50 supermarkets run by agriculture associations in New Taipei City, Greater Kao-hsiung and Pingtung, Penghu and Kinmen counties are participating in the sale of frozen pork products, Council of Agriculture Minister Chen Bao-ji said.

Wholesale hog prices have dropped significantly to less than TWD50 (US$1.71) per kilogramme because of a supply glut, but retail prices have not reflected the -decline and hovered around TWD200 (US$6.84) per kg, Chen said.

The council plans to review the campaign every two weeks and see whether the sales need to be expanded, he added. More stores, including supermarket chains and warehouse retailers, will participate in the second wave of sales tomorrow, which will bring the total number of stores participating to more than 800, Chen said.

The campaign will allow consumers to buy pork at discounted prices, while helping swine farmers resolve a supply glut, said Hsu Kuei-sen, head of the councils Department of Animal Husbandry.

Meanwhile, the council is carefully assessing the oversupply problem, as well as discussing with farmers the number of hogs that need to be slaughtered, Hsu said.

Before a consensus on the number can be reached, the ministry needs to calculate the number of swine exceeding limits set for each city and county, Hsu said, a task he said would be finished tomorrow.

In order to stabilise pork prices, the department has proposed that 60,000 pigs be slaughtered between May and July, but farmers want that number boosted to 100,000, Hsu said.

A final decision will be made at a meeting on Monday between the department and a major swine breeding association.