ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Vendors Convinced to Freeze Pork Prices

by 5m Editor
8 June 2011, at 9:27am

THAILAND - After convincing pork vendors to freeze their prices at Bt130-Bt135 per kilogram, the Commerce Ministry will soon request prepared-food makers to lower their prices, due to concern over skyrocketing inflation.

"Food prices are weighted at about 20 per cent in inflation's calculation. The ministry will dampen down the retail price of foods to ensure stable inflation this year and curb rising consumer costs," Yanyong Phuangrach, permanent secretary of the ministry, said yesterday.

The Nation reports that meat prices account for 4.43 per cent of the consumer price index, while cooked food contributes 15.75 per cent of the basket of goods and services.

Last month inflation rose by 4.19 per cent year-on-year, driven by food and fuel prices. However, the ministry projects inflation at 3.2-3.7 per cent for this whole year.

After meeting with pork retailers and farmers, the ministry announced that retail prices of pork would be dropped by Bt5 to Bt130-Bt135 a kilo for the first decline since last month.

Pork prices are expected to continue sliding next month with the recovery in supply, he added.

Kitdiwong Somboontham, secretary-general of the National Swine Farmers Association, said the price of pork has shot up in the past few months due to a shortage of piglets following the outbreak of a disease.

Although the cost of feedmeal has decreased from Bt12.45 a kilo to Bt12.41, the lower supply of piglets has pushed up the cost of production, he said.

Swine were selling for Bt5,400 each in January, increasing steadily to Bt7,080 in May.

Pig farmers will closely monitor the cost of production, he said, adding that retail prices of pork should ease in the next few months, following the end of the outbreak.