Government struggles to stabilise beef price
Government struggles to stabilise beef price
The Industry and Commerce Ministry and the Agriculture and Forestry Ministry are moving to regulate the supply and demand of meat to curb the rising price of beef.
“This is to ensure that the beef price stops increasing,” Domestic Trade Department Director General, Mr Leuam Nhongvongsithi, told Vientiane Times yesterday.
The department is working with the Vientiane Industry and Commerce department and the Ministry of Agriculture and Forestry on a study to determine how the regulations would work.
Mr Leuam said food supply companies in Vientiane would be instructed to purchase the beef from provincial farmers and then supply it directly to the Vientiane market.
The companies in Vientiane would have to sign contracts with the provincial food suppliers before trading in beef and cattle.
“This plan may not help reduce the meat price, but it will help stop the price increasing and keep it from changing,” Mr Leuam said.
“The plan is expected to come into effect early next year.”
Mr Leuam said the meat supply from the provinces to Vientiane was currently being run by middlemen.
He said the beef price is now at 70,000 kip per kg at the retail markets in Vientiane, while it is 50,000-66,000 kip per kg in the provinces.
Vientiane Capital State Foodstuff Enterprise Director, Mr Khamla Saengdara, said the beef price has risen sharply.
He said it was only 60,000 kip per kg at the retail markets last year.
The main meat-supplying provinces are Savannakhet, Khammuan, Borikhamxay and Xieng Khuang.
Mr Leuam said meat price control was a major challenge as there was a discrepancy between supply and demand, and because recently cattle have been exported to meat processing factories in China and Vietnam.
Lao beef farmers have started selling their produce to neighbouring countries because they offer better prices than domestic buyers.
In response, the government has announced it will freeze all exports of meat.
“Currently the beef price in Laos is at an average of 70,000 kip per kg, but it is about 130,000 kip per kg in Vietnam,” Mr Leuam said.
“That is why local cattle are being exported, and that has caused the rising price of beef in local markets.”
vientiane times
