July 16, 2008


Malaysia's pig farmers advised to cut output

  
  
Malaysian pig farmers should cut production by 25-30 percent and reduce sow population to offset rising feed prices, according to the Federation of Livestock Farmers Association pig unit head Beh Kim Hee.


The advice follows the surging global corn prices and India's decision to ban corn exports.


Another way for pig farmers to stay afloat is to rear suckling pigs, Beh said, continuing that Malaysia imports all of its suckling pigs from Vietnam therefore it would be beneficial if local pig farmers could take up 30 percent of the share.


Malaysian pig farmers have an opportunity to do so as Vietnam is exporting most of its suckling pigs to China where there is a high demand, Beh said.


Farmers are still unable to sustain the high production costs despite raising the ex-farm price of pigs from RM 5.6 per kg to RM 7.1 in the past two months, according to Beh.


"Some farmers are selling off their pigs at cheaper prices because they need cash to buy the various feed ingredients which are more costly now," he said.


Corn prices had jumped to RM 1,500 from RM 1,050 per tonne early this month. Prices of soymeal are currently at RM 2,100, up from RM 900 last year while wheat prices had tripled to RM 900 within a year, Beh said.


India's decision may lead to a situation where even money could not buy corn as it would not arrive on time, Beh said, pointing out that imported corn from the US and Argentina would take two months to arrive.


Beh added that pig farmers are now facing the possibility of not having any corn supply for the next few weeks.

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