Re-calculation Planned on Pork Pricing

by 5m Editor
19 February 2008, at 9:37am

THAILAND - Pig industry representatives will meet the Commerce Ministry this week to discuss rising pork prices and a new formula for calculating retail prices.

Yanyong Phuangrach the director-general of the Internal Trade Department, said participants would include CP and Betagro, which control about 55 per cent of local pork sales and production.

According to the Bangkok Post, the department has no policy of capping pork prices. However, it has signalled that operators need to cut their prices by proposing that they revise the way that they calculate retail prices.

Under the current formula, the retail price is equivalent to the farm price multiplied by two and plus two baht a kilogramme. But the department recommends that the retail price be equivalent to the farm price plus 80 per cent.

Last week the department approved an increase in the ex-farm price of pork to 59-61 baht a kilogramme. This forced retail prices to rise up to 120 baht per kilogramme from the previous level of 95-100 baht.

The increase to prices has been blamed on rising production costs and a low supply of pigs due to a diarrhoea outbreak that killed almost 500,000 rearing pigs.

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5m Editor