Thailand’s internal trade dept to cut pig production for price stability

Photo courtesy of Wichan Charoenkiatpakul

The Internal Trade Department is looking to partner with the Department of Livestock Development (DLD) and the Swine Raisers Association of Thailand, with a plan to cut pig production down to an average of 8,000 piglets each day. This action aims to stabilise the price for livestock producers across the country.

According to the director-general of the Internal Trade Department, Wattanasak Sur-iam, the collaboration is set to promote greater pork consumption to boost the price. This is due to the current overproduction of live pigs which stands at a daily average of 50,000 to 58,000 pigs, surpassing demand.

The department is also encouraging wholesale, retail and department stores to refrain from promotional campaigns for pork products. This is in an attempt to curb the losses experienced by farmers due to low buying prices at farms. Currently, the price of fresh whole slaughtered pork is critically low, standing at 130 baht per kilogramme.

Wattanasak highlighted that the price of live pigs at farms is as low as 67-68 baht per kilogramme, significantly below the estimated production cost of 72 baht per kilogramme, as reported by the Office of Agricultural Economics. By reducing pig production, the price is expected to increase, while the department will also aim to cut production costs, especially the cost of pig feed, to ensure the survival of farmers.

The Deputy Director-General of the Internal Trade Department, Chakra Yodmani, mentioned that the department is discussing with the Thai Feed Mill Association to keep an eye on the price of raw materials for animal feed. It was revealed that the price of animal feed is decreasing, as shown by the lower price of raw materials in the first two months of the year. This includes corn meal at 10.26 baht per kilogramme, soybean meal at 13.92 baht per kilogramme, wheat at 7.74 baht per kilogramme, and fish meal at 32 baht per kilogramme, said Chakra.

“The department will closely monitor the price of the raw materials of animal feed and urge the producers to reduce the price accordingly given the continual reduction in price. Overall, the price of animal feed gradually reduced compared with last year, in particular wheat, and soybean meal which is expected to be further reduced due to a larger area for cultivation in Argentina.”

Pig farmers

The support for pig farmers by reducing the price of animal feed through cooperation between pig farmers and feed millers, the Internal Trade Department is committed to continuing to back such an initiative to help offset the losses of farmers for over a year.

On a related note, Wattanasak revealed that the Deputy Prime Minister and Commerce Minister Phumtham Wechayachai is set to announce a partnership on March 7 between the department and Thailand Post. This partnership will see Thong Fah (Blue Flag) low-priced stores used as drop-off points for goods from farmers, small and medium-sized enterprises and the public, reported Bangkok Post.

In related news, a nationwide crackdown on pork smuggling, triggered by plummeting prices, disrupted Thailand’s hog farming. The government’s efforts aimed to safeguard farmers’ income and public health from tainted produce.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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