Beef prices unlikely to return to normal

Beef prices unlikely to return to normal

Livestock authorities believe the price of beef and buffalo meat will not drop back to 2012 levels after rising to new highs over the New Year.

The high prices have remained, buoyed by further demand over the Lunar New Year.

The price of beef and buffalo meat in various markets in Vientiane and the provinces has remained stable at 60,000-65,000 kip per kg. This has been attributed to a shortage of supply.

Local authorities, notably the industry and commerce sector, have accepted the price rise as being the result of current market mechanisms and have been unable to control the upswing.

T he price of beef and buffalo meat first rose in Xieng Khuang province where livestock breeding is heavily promoted on a commer cial scale. Animals raised in the province are commonly sold to Vietnam.

The price peaked when Vietnamese traders bought cattle and buffaloes at higher prices than paid by Lao traders, the province's domestic trade section Head, Mr Sivone Onlavong, told Vientiane Times yesterday.

Normally, farmers sold a large cow for four or five million kip, but Vietnamese traders were paying eight or 10 million kip, and more than 10 million kip for a buffalo, he said.

This meant Lao livestock traders and meat sellers had to follow suit in order to make a profit, said Mr Sivone.

“We could not control this high price because it is the province's policy to encourage farmers to raise livestock for sale so they can earn an income to improve their family's circumstances,” he explained.

“The important thing we can do is to encourage farmers to raise sufficient livestock to meet market demand and domestic consumption requirements.”

Vietnam is the largest purchaser of livestock from Laos, especially from Xieng Khuang province. If the province gave up production for export purposes, it would impact markets as well as the livelihoods of local farmers.

Cattle and buffaloes from around the country are transported across the province's border to Vietnam.

Each year, the province exports more than 10,000 head of cattle and buffaloes to Vietnam and about 4,000 head from other provinces. But this amount does not meet Vietnam's needs, Mr Sivone reported.

Livestock production is the province's top priority in boosting economic development, with tourism in second place.

However, pork prices have remained unchanged at 35,000 kip per kg as the authorities have been able to regulate the price. The cost of rice is even lower than last year because there is an over supply.

vientiane times