• 
• 

Published on March 11, 2008

Amid rising prices for pork, the Betagro Group has invested about Bt400 million to set up four new pig farms aimed at increasing its production of premium quality meat for both the domestic and export markets.

The group is also seeking land in Chiang Mai to set up a standard slaughterhouse, which will require an additional Bt350 million. The plans follow the group's principle that Thailand's pork industry should be based on farms and slaughtering facilities of high standard.

Executive vice president Nopporn Vayuchote said the new farms, which are in Lopburi province, will help Betagro achieve a production rate of 800 head of pigs per day. The production rate is expected to grow to 600 head per day by the end of this year.

The Bt400-million farms include three parent pig-breeding farms carrying a total of 40,000 head and one pig-fattening farm carrying 24,000. They will double the group's parent breeding stock to 80,000 head when combined with pigs on its 19 existing farms.

"We are stepping forward to ensure hygienic meat," he said, adding that production from the new farms would be for export only.

The Betagro Group recently entered a joint project with Mae Jo University in Chiang Mai province to renovate the university's existing slaughterhouse for commercial purposes. Total production there is expected soon to reach 200 head of pigs per day. At present, the group has only one slaughterhouse, near its main manufacturing plant in Lopburi province.

Kriengmas Punchai, senior vice president for swine integration, said Betagro's pig business generated an average of Bt4 billion per year, including parent breeding stock, fresh meat and processed pork. Of this, exports accounted for Bt500 million.

The group plans to increase its sausage production capacity from 300 to 800 tonnes next year.

Kriengmas said the problem of increasing pork prices derived from instability in the pig feed industry. Unlike the chicken production business, pig farmers were mainly small and medium-sized operations rather than large-scale farms. As well, pig farmers supplied live pigs to manufacturers while chicken producers usually had manufacturing plants.

"Involved only in farming, pig producers cannot control their supply chains like chicken producers, so when problems occur, they are directly affected," Kriengmas said, adding this was also a major factor contributing to a price-drop cycle every two to three years.

To solve the problem, he said the government should promote the establishment of standard slaughterhouses that also have cold storage, by providing subsidies or incentive packages to attract private-sector investment.

"Having cold storage, manufacturers can store supplies when facing a surplus so they can delay supplies from entering the market," Nopporn said.

Achara Pongvutitham

The Nation