The National Swine Raisers Association argues with the Commerce Minister that the high cost of Thai pork is due to the Commerce Ministry’s policy to make animal feed the most expensive in the world, contrary to Brazil’s very low cost.
Mr. Sittipan Thanakiatpinyo, President of the National Swine Raisers Association, clarified the doubts in the case of Mr. Pichai Naripthaphan, Minister of Commerce, who stated why smuggled pork from Brazil is cheap, even though there are under-the-table fees and it is sold in the Thai market at a cheaper price than domestic pork. The truth is that the cost of animal feed raw materials in Brazil is very low, while the cost structure of pig production in Thailand, with 65-70% of the cost coming from animal feed raw materials, which are under the policy supervision of the Ministry of Commerce, is very high. In the case of protein plants, such as soybean meal, there is an excessive profit markup, causing Thai animal feed raw materials to be the highest-priced group in the world. I
n addition, corn in Thailand is expensive, at more than 10 baht per kilogram, while the price of corn abroad has continuously weakened, averaging only 5-6 baht per kilogram.
‘Thai animal feed is expensive. This is the main reason why the Minister of Commerce should look into the pricing structure of animal feed ingredients, which has been untouchable for 7 years. There is a 3 to 1 measure that continues to make corn prices high and there are shady issues. These are major problems that farmer groups have been demanding all along. It is expected that small-scale farmer groups will use legal measures, such as filing a complaint about misconduct in government positions due to not receiving an answer or resolution in this case to the National Anti-Corruption Commission (NACC) soon as well,’ said Mr. Sittipan.
Mr. Duenden Yimyam, President of the Northeast Small-scale Pig Farmers Association, said that the government should consider adjusting animal feed policies to reduce production costs for farmers. If this pr
oblem is solved, farmers are believed to be able to average 60 baht per kilogram, which will certainly compete with Brazil. Importantly, Thai pork is of good quality, free from red meat accelerators, and is fresher and cleaner than pork from Brazil.
‘The government should look at it from the other side. Instead of importing pork from Brazil or selling Thai pork at the same price as Brazil, it should encourage Thai pig farmers to produce for export like Brazil. This will be a sustainable solution. In addition to bringing in money, it will also help Thai people consume pork at a reasonable price, helping to reduce the cost of living for the people in line with the government’s goal. It will also help to grow the Thai economy from meat exports,’ Mr. Duenden emphasized.
Source: Thai News Agency