July 1, 2011

Thailand bans live pig exports to neighbouring countries

The Commerce Ministry of Thailand has suspended exports of live pigs to neighbouring countries in an attempt to bring down domestic retail pork prices, according to media reports.

The ban, effective from on June 30, will be temporary and will not cover exports of pork products.

Officials imposed the ban after finding that a large number of pigs were being exported to Cambodia and Vietnam to enjoy higher prices at THB80 (US$2.6) and THB90 (US$2.9) a kilogramme respectively, compared with THB70 (US$2.3) in Thailand.

The resulting fall in domestic supplies has pushed up retail pork prices to between THB135-THB140 (US$4.39-US$4.5) a kilogramme, from an average THB120 (US$3.9) last year, and THB90 (US$2.9) in 2009.

Acting Commerce Minister Porntiva Nakasai said that disease outbreaks had damaged pig farms in neighbouring countries and driven up prices, driving demand for Thai pigs.

She said export volume rose to 180,000 head during the first five months this year, compared with 92,215 pigs in the same period this year.

The export suspension also will require prior approval for the transport of 10 pigs or more to 24 provinces close to or sharing borders with neighbouring countries.

Porntiva said she expected the measure would bring down prices of pigs to no higher than THB65 (US$2.1) within two weeks and eventually lower retail pork prices.

The country produces about 12 million pigs a year, of which 11 million are consumed locally.