Markets

Government Imposes Pork Price Controls

THAILAND - Since the end of last week, the government has added further controls to the prices of pigs and pork.

9 August 2011

3 minute read

Asia

The Commerce Ministry has started to regulate the prices of live hogs and pork along with their transport and the export of all amounts of live and slaughtered swine in a bid to bring down current high prices, reports Bangkok Post.

Three price levels have been set based on location. In the central, eastern and western provinces, the wholesale price of live hogs is a maximum 81 baht (THB) a kilo, while retail tenderloin will be THB152 per kg.

In the North and Northeast, live hogs will be capped at THB85 per kg and retailed tenderloin at THB157 baht, while in the South the ceiling will be THB87 and THB162 per kilo, respectively.

Permanent secretary Yanyong Phuangrach said the price controls were temporary until normal production resumes in three or four months' time.

The ministry's products and services price control committee said these prices were fair to all parties, as sellers would still make a profit of five to six per cent.

Sellers demanding higher than the controlled prices will face a maximum fine of THB100,000 and/or a five-year jail term.

The committee said those wishing to export live or slaughtered hogs in the Central region must seek Internal Trade Department permission, while elsewhere in the country export approval must come from the provincial governor.

Farm operators with more than 500 live animals or more than five tonnes of carcasses must report their capacity to the Internal Trade Department every 15 days.

Surachai Sutthitham, president of the Swine Raisers Association of Thailand, told Bangkok Post that pig breeders were willing to cooperate on price controls even though their average production cost is THB65 to THB75 per kg excluding labour costs.

With production flagging from disease, the government should set aside THB360-400 million to vaccinate 12 million swine, he said.

Last week, the same newspaper reported that porcine reproductive and respiratory syndrome (PRRS), also known as blue-ear pig disease, has reduced output and pushed retail pork prices to a record high.