Pork products to boost incomes for pig farmers' group
Pork products to boost incomes for pig farmers' group
Vientiane Pig Farmers' Group will increase its processing of pork products to supply the domestic market after pork prices have remained stable over the past five months.
The pig price at the farm gate remains steady at 25,000-26,000 kip per kg while it is 40,000 kip per kg for pork in local markets, Mr Neuang Sombounkhan told Vientiane Times yesterday.
Mr Neuang, who heads the Vientiane Pig Farmers' Group, said if the farm price stays within this range then pig breeders could manage their farms smoothly.
The pork products that the group is processing include sour pork and dried pork, he added.
“Income from selling the products will go into the development fund of the group and so far we have more than 20 million kip,” Mr Neuang said.
However, the group still needs an additional 50 million kip to improve its processing equipment, he explained.
Processing equipment is made using local materials but currently it cannot supply market demand as yet.
The group currently is processing only around 20 kg of sour pork to sell in the market, while demand exceeds this by a considerable margin.
The products are currently only sold on the domestic market but in the future it is hoped they can be exported to foreign countries as well.
Mr Neuang said he was confident the price farmers get for their pigs will not fall as demand remains high.
Local pig producers including over 40 members of the group as well as the CP operations are able to supply around 300 pigs per day to local markets in the capital.
Despite the price of animal feed and piglets having increased pig producers are happy with the prices they currently receive for their animals.
The capital required for pig breeding has also increased from 19,500 kip per kg to over 20,000 kip per kg, Mr Neuang said.
The Asean Economic Community (AEC) integration next year will also present a challenge for the group which will have to improve its breeding operations and prepare for increased competition.
Many Lao business units and Small and Medium Enterprises (SMEs) are concerned about competition due to limited funding and the high cost of technological improvements required to compete.
Some business units struggle to access finance for their business expansion and are struggling with high interest rates charged by the banks.
vientiane times
