Pig farmers still struggling despite price rises
Pig farmers still struggling despite price rises
Vientiane pig farmers are still struggling to make large profits despite pork prices rising in Vientiane markets, a pig farm owner has said.
The price of pig meat sold directly from farms has risen from 19,000 kip per kg a few months ago to 22,000-23,000 kip per kg now. It has reached as high as 24,000-25,000 kip per kg at some farms, Vientiane pig breeder Mr Neuang Sombounkhan told Vientiane Times yesterday.
The price at the slaughterhouse rose from 25,000 kip to more than 30,000 kip, while at the market it rose from 40,000 kip to 43,000 kip per kg of pork.
However the margin for market vendors is not that great as they purchase the entire butchered pig from the slaughterhouse, including the bone, offal and head, for the same price. They then have to separate and grade the meat before selling it at different prices.
Mr Neuang said if the farm price stayed between 22,000 and 23,000 kip per kg then pig breeders could manage their farms smoothly.
But farmers would have trouble staying afloat if the price dropped to 18,000 to 19,000 kip per kg, he said.
The costs of pig farming are high, with farmers needing to pay for piglets, animal feed and labour.
Mr Neuang said traders who buy pigs from the farm to kill at the slaughterhouse and then sell to pork vendors at the market always made a profit.
These middlemen now collect 5,000 kip for every kilogramme of pig they buy and then sell on, an increase on the 3,000 kip they earned in 2012, by charging higher fees for service, slaughter and transportation.
Mr Neuang said high demand and low supply had caused the price rise. Over 500 pigs are needed every day to meet the demand of markets in Vientiane.
However local pig producers, including the 40 odd Lao Pig Farmer's Association farms as well as the CP operations, have recently only been able to supply around 300 or more.
Some pig breeders have been forced to sell their young pigs to bolster their incomes, Mr Neuang said.
Many local pig farmers are struggling despite the high prices because they import pretty much all their inputs, including, piglets, vaccinations and feed from neighbouring Thailand and are also saddled with debt after borrowing to build their pig sties.
The number of people regularly eating pork has risen, while beef consumption has been lower as a result of high prices and the low supply of meat.
The government has set the price for pigs at 18,000-20,500 kip per kg at the farm, 22,500-25,000 kip per kg at the slaughterhouse and 37,000 kip per kg at the markets, but the prices have proved difficult to control.
Less cattle and buffalo have been killed recently as farmers have limited land on which to raise the livestock. Pork prices in neighbouring countries, especially Thailand, have also risen.
vientiane times
