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All live hog farmers and immediate live hog buyers in Malaysia are required to abide by the adjusted live hog prices issued by the respective state associations in their conduct of business.

Mr Shen Yafu, general manager of FLFAM and chairman of the Malaysia Live Hog Group, revealed that representatives of the Group and immediate live hog buyers held a meeting in Kuala Lumpur to discuss ex-farm prices of live hog and had achieved a consensus to adjust upward the prices. Ex-farm prices of live hog in Selangor will be raised from Ringgit 470 per 100 kg in the previous week to RM500 per 100 kg, while ex-farm prices in Malacca, Perlis and Penang will be adjusted upward from Ringgit 460 to 490 per 100 kg.

According to Mr Shen, the agreement between both parties is an attempt to keep the hog farmers afloat. These farmers, already facing escalating production costs due to the soaring prices of feed ingredients, will have difficulty to sustain their businesses if ex-farm prices of live hog continue to remain low. Consequently, with the agreement of both parties, ex-farm prices of live hog will be raised to a reasonable level.

He added that prices of soymeal, the key feed ingredient in hog feed production, have once again shot up sharply. Current soymeal prices in Malaysia have surged to Ringgit 1,400/ton, while corn prices rose to nearly RM700/ton.

The sharp hike in prices of feed ingredients has exacerbated cost pressure on livestock farmers in Malaysia. Farmers, finding it difficult to cope with, are no longer able to continue operating their businesses without incurring a loss.

Source: eFeedLink - 24th March 2004