May 1, 2009

The swine flu which started its havoc in Mexico may also affect the billion baht Thailand pork industry.

After suffering from the bird flu chaos in 2004, Thailand's 70 billion baht pork industry is now preparing for the worst.

Big farm operators Betagro and CPF have imposed additional protection measures to prevent the possible spread of the swine flu virus. The outbreak became the latest blow to the pork trade with vendors struggling hard to cope with the fast-dwindling demand, while consumers switched to chicken as their first protein choice, sparking an increase in poultry prices.

Despite the Mexican flu outbreak, Yangyong Phuangrach, director-general of the Internal Trade Department reported that the price of pork are still up as lower number of piglets were being bred due to higher feed meal costs. Nonetheless, he said, the domestic pork price should not sharply decrease 100 percent of Thailand’s pigs are fed in the country. Although the pork price was high at present, it is expected to drop due to a greater supply of pigs after the dry season.

Saha Farm chairman Panya Chotitawan said demand for chicken would increase slightly as consumers shun pork.

Adirek Sripratak, president and CEO of Charoen Pokphand Foods, said any windfall for the chicken industry from the Mexican flu would be limited.

Siripol Yodmuangcharoen, permanent secretary of the Commerce Ministry, said that despite the impact from swine flu on demand for pork, chicken and seafood exports should have a good year. Food exports have dropped by 5.1 percent to US$2.72 billion so far this year due to the global economic downturn. However, the ministry expects full-year growth of 8.3 percent to US$14.58 billion.