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Published on March 15, 2008

The Commerce Ministry will impose an urgent measure banning pig exports in an attempt to ease the supply shortage and stem rising prices.

The announcement came after it found pigs were being smuggled to neighbouring countries, which has exacerbated the domestic supply shortage.

Commerce Minister Mingkwan Sangsuwan said yesterday that the ministry had ordered officials to be on the lookout for illegal exports.

Pork prices in neighbouring countries are higher than in Thailand, so traders are tempted by the chance of higher profits.

"The movement of pigs will require official approval and there will be a ban on exports, as the key measures being implemented," Mingkwan said.

Pork already is already on the ministry's list of control goods, on which some measures can be immediately introduced to ease shortages or control prices.

The price of pork has been reduced to between Bt95 and Bt115 per kilogram, from the previous level of Bt120. The ministry, in cooperation with pig traders, supplies pork at Bt98 per kilo to the market.

However, the ministry will concentrate more on reforming pig-farming methods for long-term protection against future problems.

Due to supply shortages, the piglet price has jumped from Bt800 to Bt1,800 per head.

"We have to look at pig-farming methods and adjust them to prevent problems in the future," Mingkwan said, adding that the pork price at the farm gate was Bt58 per kilo while the retail cost was Bt98.

The price of a piglet accounts for 30 per cent of the production cost, which is quite high and needs to be examined, he added.

However, the ministry plans to hold a meeting with concerned ministries to decide whether to cut the import tariff on soybean meal to zero. The idea was floated to help reduce costs for pig farmers.

Petchanet Pratruangkrai

The Nation