October 14, 2008

Rising production costs, falling market price of pork and cheap imports are hurting Cambodia's pig sector, as farmers said those factors have prevented them from expanding their business.

Local pig farmers said high feed prices and cheap imports are forcing them out of business. Pig farm supervisor Srun Sour said feed prices have more than doubled this year, while pork prices have dropped about KHR 2,000 per kg.

Corn prices have jumped to KHR 1,250 per kg from KHR 600 last year, while soy reached KHR 1,200 per kg from KHR 500 last year.

Srun said they were trying to promote pig farms to provide jobs to locals, especially farmers who grow corn, soy and rice, but imported pigs from neighbouring countries are threatening local farms.

To ensure the sustainability of the domestic pig industry, the government must reduce the number of imported pigs, Srun said.

The sale price of pigs fail to balance its costs, said Ho Seung Thur, a former pig farmer who was bankrupted due to high feed prices and falling income.

"The estimated cost of raising one kg of pork is KHR 9,000, but traders offer only KHR 7,000 per kg for live pigs," Ho said.

Som Siborin, a pig farmer from Kandal province, said he has seen large-scale pig smuggling from Thailand that is pressurising domestic pig prices.

If imports were reduced 20 percent, domestic pig farmers will no longer go out of business, according to Soam Sin, deputy governor of Kien Svay district in Kandal province.