Excessive Cattle Exports Boosting Beef Prices, Thai Traders Complain

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Excessive cattle exports boosting beef prices, traders complain

By Kawintra Jaisue,

Saowalak Khongphakphoon

The Nation

Because of a current shortage of beef cattle after large exports to Vietnam, the per-kilo retail price of beef in Thailand has reached Bt160-Bt200 - but demand is still high.

In live-cattle markets in the Northeast, buyers are complaining about fewer head available, despite being cashed up and ready to pay.

Khamta Thongkhote, a nai hoi - a local term for a cattle buyer - said he could buy only a few head at a time now, compared with 20-30 before the shortage. "Each purchase now earns me less than Bt1,000."

Khamta, who raised all his children and funded their college education through cattle trading, said small-time nai hoi like himself could not fairly compete with middlemen, whether Thais or Lao. They packed the Isaan cattle markets and paid much higher prices, making big profits when reselling to Vietnamese or Chinese buyers.

Sommai Phoolphol, a big-time butcher in Khon Kaen, said she now gave her husband Bt200,000 when he was out visiting cattle markets - double the regular amount that could buy 10 head of cattle. "We have no guarantee whether even twice as much money can get us the number we want."

Each head of cattle of average size now costs Bt15,000-Bt18,000 compared with Bt6,000-Bt7,000 late last year, she said. She now butchers only two animals each day and has to raise the per-kilo retail price to Bt160.

"The retail price could soon reach Bt200, because of the shortage and higher price of live cattle," she said.

Former nai hoi Thiamjan Chookhai became a rubber planter after he foresaw the drop in the cattle trade. He sold his 15 animals and turned his cattle farm into a rubber plantation.

"Vast areas of prairie for the cattle to feed on are shrinking and the cost of raising cattle prompted me to invest in a rubber plantation," he said.

Farmers in the North have heavily sold cattle to Cambodian, Vietnamese and Malaysian buyers, at higher prices than the rates offered by Thai buyers, resulting in a shortage in local markets. Chanin Songmek, manager of Tak Beef Cooperative, said local breeds of cattle remained in small numbers while farm cattle were also limited.

A Khon Kaen University lecturer in food science, Associate Professor Wiroj Phattharajinda, said government regulation was needed to roll back the excessive export volume of beef cattle, otherwise Thailand's image as "the world's gourmet kitchen" would be affected, or finally vanish altogether.

"Thailand still exports beef cattle without regulations, while neighbouring countries systematically promote production of dairy or beef cattle," he said. "They will soon compete against Thailand in exporting live cattle and likely defeat us in the end, just as Thailand is losing out to Vietnam as a key exporter of jasmine rice.

"We may one day lose our trademark as the world's gourmet kitchen" without regulations on beef-cattle exports, he said.

-- The Nation 2011-01-14

[surayu]

" Former nai hoi Thiamjan Chookhai became a rubber planter after he foresaw the drop in the cattle trade. He sold his 15 animals and turned his cattle farm into a rubber plantation."

....and then he allegedly added to his previous released statement : "who cares! my new steaks made of rubber will be much more likely to be less tough of the ones i was getting out of my cattles, i am glad the Vietnam's shoes industry made the purchase" (unsourced)

[whybother]

Farmers in Loei province are selling their cattle and turning their farms into rubber plantations following a drastic drop in the price of live cattle.

One article is stating the beef cattle prices are rising, and another is saying there is a drastic drop in the price of live cattle.

Does that mean the price went up, and dropped immediately?

[surayu]

Whybother, the price was dropping for the "sick" beef/buffaloes, so once they are not well anymore, it's is normal their values go down, this also bring some justice on all those "sick buffaloes" stories you read around...just a bull to stay in theme

[Ricardo]

Good news for the farmers, at least, that they can now get a better price when they sell their cattle.

No wonder the traders want a return to the previous situation. And it is of course foreign traders and consumers, who are to blame, for running-up the prices.

[Jimi007]

Oh yum, Thai beef. I wonder who would want to buy it other than Vietnam and China?

[DP25]

Odd story. I thought the Vietnamese liked beef.

[MaiChai]

Well there was a time in Thailand when hamburgers were made out of buffalo meat, and they were tough! We could see a return to the very chewy hamburgers!

Guess the humble hamburger is going to shoot up in price? Better rush down to Burger King before they put the prices up (would not touch a McShite myself).

Horrible stories on TV about increasing oil and food prices across the globe. The world is out of recession and capitalism is in full flow.

Mass exodus of farangs from Thailand to Vietnam/Indonesia/Phillipines as hamburger prices soar?

[Humphrey Bear]

The Vietnamese do like beef, as well as pork, dog and anything else that comes along.

The standard of living is rising rapidly, but the countryside is still desperately poor. All the meat is going in to the major towns and is selling well. Aussie beef is very popular in the better restaurants, there is also some NZ produce.

I guess the Thais will just have to pay more, if they want to put meat on the table.

[ozzieovaseas]

Oh yum, Thai beef. I wonder who would want to buy it other than Vietnam and China?

Yes, good point Jimi,

Either those with VERY strong jaws and sharp teeth, or those who like slow cooked curries and ground (minced) beef.

I know Thais arent very impressed with the smell/taste of cumin based curries..better not comment on what ive heard they think it smells like

[asiawatcher]

I have yet to have any decent cut (in ten years) of any Thai beef. I am not sure if they export the good stuff but the quality of what is here is classified 'road kill' and inedible. Someone point me to any steak house here that sells Thai beef that is edible - please! I would love to be proven wrong.

In a sadder note - look at the Aussie beef with all the floods now in cattle country. Even 200 Bt a Kg is nothing compared to what the Aussies will have to pay. Cattle losses have been horrific as well.

[rreddin]

Good news for the farmers, at least, that they can now get a better price when they sell their cattle.

No wonder the traders want a return to the previous situation. And it is of course foreign traders and consumers, who are to blame, for running-up the prices.

Yours seemed the best post to hang this onto.

"A Khon Kaen University lecturer in food science, Associate Professor Wiroj Phattharajinda, said government regulation was needed to roll back the excessive export volume of beef cattle, otherwise Thailand's image as "the world's gourmet kitchen" would be affected, or finally vanish altogether.

"Thailand still exports beef cattle without regulations, while neighbouring countries systematically promote production of dairy or beef cattle," he said. "They will soon compete against Thailand in exporting live cattle and likely defeat us in the end, just as Thailand is losing out to Vietnam as a key exporter of jasmine rice.

"We may one day lose our trademark as the world's gourmet kitchen" without regulations on beef-cattle exports, he said."

Associate Professor Wiroj Phattharajinda is a lecturer in food science, not economics. If he were, he would understand that it is demand not lack of regulation that is pushing up the prices. It seems that buyers in export markets are prepared to pay more for the product than domestic buyers, so the producers sell to the highest bidder. That is how the capitalistic market system works. I, for one, am happy if the farmers are getting a fair deal.

The reality is that in contrast to buyers in export markets, domestic traders do not want to pay the producer a fair price.

As for "We may one day lose our trademark as the world's gourmet kitchen" without regulations on beef-cattle exports...", that is a new one on me. Althoug it gauls me to say it (pun intended), the French have a far superior claim to that title.

[bangon04]

Good news for the farmers, at least, that they can now get a better price when they sell their cattle.

No wonder the traders want a return to the previous situation. And it is of course foreign traders and consumers, who are to blame, for running-up the prices.

[bangon04]

Good news for the farmers, at least, that they can now get a better price when they sell their cattle.

No wonder the traders want a return to the previous situation. And it is of course foreign traders and consumers, who are to blame, for running-up the prices.

Whatever next? Rice prices in Thailand being determined by the laws of supply and demand??

[surayu]

But seriously, why the thai beef meat is so incredibly tough?? is it because of the race?? the feeding?? i heard even the way you cut the same piece of meat can affect the softness, couldn't they just introduce some other beef race or change the feedings? or maybe is the age of the animal, the older it is the worse it gets but it becomes heavier and then more profitable?? where are all the farmers? heeellpp!

[TAWP]

Why would a trader complain about the increase in price? That only means their marginal on-top increases in monetary size too...unless they somehow try to sell to local chains that try to buy at a fixed price. So don't sell to them...sell to those that buy.

[khaowong1]

It would appear that the cattle traders want to buy low and sell high.. wow, what a concept. I wonder why the rest of the world hasn't thought of this?