Bangkok:The Commerce Ministry has reported that farm-gate pork prices continue to fall short of production costs, even after the National Swine Breeders Association raised its recommended price by 4 baht per kilogram.
According to Thai News Agency, the Director-General of the Department of Internal Trade, Mr. Wattanasak Suea-iam, explained that the latest increase in the recommended price for live pigs at the farm gate is a response to a prolonged decline in prices, which have stayed low in relation to the production costs incurred by pig farmers. The president of the National Swine Breeders Association, Mr. Sittiphan Thanakiattiphinyo, emphasized that the recommended price is a guideline and not the actual buying and selling price, aiming to support farmers who continue to face financial losses and rising feed costs.
The current situation shows that the average price of live pigs nationwide as of October 21st was 68.20 baht per kilogram, marking a decrease from the previous week's 68.38 baht per kilogram and from last month's 71 baht per kilogram. Additionally, the average price of untrimmed lean pork, such as hip or shoulder cuts, was 129.63 baht per kilogram, down from the previous week's 130.31 baht per kilogram and the previous month's 140.78 baht per kilogram.
Mr. Suea-iam also noted that the number of pigs slaughtered is on an upward trend, leading to a price decrease due to market mechanisms. The Department of Internal Trade is closely coordinating with the Department of Livestock Development to monitor the supply of pigs and ensure that it meets consumer demand. They are also exploring ways to aid pig farmers impacted by recent floods.
Mr. Thanakiattiphinyo further clarified that the price adjustment aims to allow farmers to sell pigs at prices that cover their costs. However, he acknowledged that the actual selling price may vary based on sales volume, location, and transportation costs. Despite an increase in recommended prices, some areas still report selling prices below production costs, with some farmers previously receiving only 56-58 baht per kilogram.
The average cost of producing fattened pigs remains at 71.78 baht per kilogram, yet market conditions and rising feed costs continue to challenge pig farmers. In response, the National Swine Breeders Association is working on managing production volumes to align with market demand and collaborating with government agencies to enhance farm standards and market opportunities.