Thai Ministry Moves To Hold Down Prices Of Eggs, Pork

[webfact]

Ministry moves to hold down prices of eggs, pork

By PETCHANET PRATRUANGKRAI

THE NATION

The Commerce Ministry has called for egg producers to slow exports for six months, while it has frozen pork prices for three months to curb rising consumer costs.

As a result, eggs will be retailed at Bt3.10-Bt3.20 each for mixed sizes in fresh markets. The target retail price of pork will be Bt135-Bt140 a kilogram.

Vatchari Vimootayon, director-general of the Internal Trade Department, said rising prices of eggs and pork were mainly due to increasing feed-meal prices, while natural disasters such as floods had caused disease in hens and reduced egg production.

However, the price of eggs should stabilise after producers have committed to a temporary export ban until October.

Only large companies that have future contracts will continue egg exports. However, that will not affect domestic egg prices, Vatchari said.

On average, Thailand exports about 20 million to 30 million eggs a month. Thais consume 25 million eggs a day, but daily production has dropped by 3 million eggs.

To ease the rise in the cost of living, the ministry will set the price of eggs in fresh markets at Bt3.10-Bt3.20 each, with an approximate amount of 1 million eggs a day.

Vatchari said the ministry would consider adding fishmeal to its price-control list if it finds that the rising price of feed meal has affected egg prices.

Manoch Chootubtim, president of the Egg Farmers Association, said the price of feed meal had increased continuously from Bt11 a kilogram in the first quarter of the year to more than Bt12 a kilo now.

"Egg farmers have faced lower income and only 10-per-cent profit. Prices of all consumer goods have gradually increased, and egg prices are not [immune to] higher production costs," he said.

In addition, the ministry will freeze the price of swine at Bt59-Bt60 a kilogram at the farm gate for three months in a bid to control the retail price of pork at Bt135-Bt140 a kilo. The ministry has also asked producers to slow down the export of pork for the time being. Exports account for 1 per cent of the country's pork production.

Thailand is currently able to produce 38,000 swine a day, down from the normal rate of 40,000 a day.

Pork prices have increased gradually in every country because of the impact of climate change, which slows down pigs' life cycle and raises the cost of production.

Supply of pork in the world market has dropped by 10 per cent, mainly in major producers such as Thailand, Vietnam, South Korea and Cambodia.

-- The Nation 2011-04-20

[ib1b4]

How will this reduce the profits by the feed mill owners, which happen to be Thailands THIRD richest family, giving the farmer a lower kg price only hurts the family of pig farmers taking away their profit margin. and reducing the export sales will have no impact because is only 1% of production.

[rubl]

Value of eggs indicated in Baht each? Shouldn't that be by the KILO

[tigermonkey]

All absolute nonsense and political posturing !

You can't find an egg in the markets in the north for 3.2 Baht each now.

The price of eggs has risen 13 % recently, since the annoucement of selling eggs by the kilo - and it is rising almost daily.

If you want to buy wholesale quantities ( which we do, for resale ), today's price for size 0 eggs is 3.5 Baht each.

...and who buys eggs in mixed sizes ????

Edited April 20, 2011 by tigermonkey

[bitterbatter]

Let's be sure to make all the unhealthiest foods the most affordable. Better add all of that crap cooking oil to the list.

[ianbaggie]

Great news - just off for a bacon and egg sandwich!!

[lucky2103]

Pure nonsense...actually, ex farm price stands at 71-74 THB/kg.

If this is to be reduced to just 60 THB/kg, many pig raisers will stop breeding, resulting in a shortage.

I suggest it will be the same as with palm oil at the start of the year - no more oil in the market.

Another question: Why the govt is so quick to curb prices in the market, but leaving feed prices uncontrolled ?

I guess small scale farmers have no lobby, but feed mills do.

[rreddin]

Pure nonsense...actually, ex farm price stands at 71-74 THB/kg.

If this is to be reduced to just 60 THB/kg, many pig raisers will stop breeding, resulting in a shortage.

I suggest it will be the same as with palm oil at the start of the year - no more oil in the market.

Another question: Why the govt is so quick to curb prices in the market, but leaving feed prices uncontrolled ?

I guess small scale farmers have no lobby, but feed mills do.

This is just short-term political posturing ahead of the election. It cannot be maintained for long otherwise pig and pultry farmers will leave the industry, if they are not already doing so. That will result in shortages and higher prices.

[Macmundi]

You can't hold down the prices of eggs for too long. The chickens will go on strike and we'll all have to start eating lizard eggs....

[WolfgangGiesen]

Hi all, <BR>the current price for ungraded eggs at the farm gate in the greater Bangkok area is 3.20 Baht and in north Thailand 3.10 Baht.<BR>This price is the equivalent price for grade 3 eggs.<BR> <BR>Bangkok price 3.20 mixed sice eggs =<BR><BR>Grade<BR>0 = 3.50 * 30 105 Baht 1 tray<BR>1 = 3.40 * 30 102 Baht 1 tray<BR>2 = 3.30 * 30 99 Baht 1 tray<BR>3 = 3.20 * 30 96 Baht 1 tray<BR>4 = 3.10 * 30 93 Baht 1 tray<BR>5 = 3.00 * 30 90 Baht 1 tray<BR>6 = 2.90 * 30 87 Baht 1 tray<BR><BR>Chiang Mai / Lampun price 3.10 mixed sice eggs =<BR><BR>Grade<BR>0 = 3.40 * 30 102 Baht 1 tray<BR>1 = 3.30 * 30 99 Baht 1 tray<BR>2 = 3.20 * 30 96 Baht 1 tray<BR>3 = 3.10 * 30 93 Baht 1 tray<BR>4 = 3.00 * 30 90 Baht 1 tray<BR>5 = 2.90 * 30 87 Baht 1 tray<BR>6 = 2.80 * 30 84 Baht 1 tray<BR><BR> For the smaller eggs grade 5 and 6 there are special prices because the demand is very limited<BR><BR>Yesterday the price was=<BR>grade 5 81 Baht 1 tray<BR>grade 6 64 Baht 1 tray <BR><BR>Those prices are for wholesellers buying about 1000 trays in one go. Some companies and Farms like RPM in Hang Dong Chiang Mai add an additionel 3 Baht a tray on top of those prices.<BR> <BR>I am selling eggs since 4 years here in the north and add a 6 Baht profit per tray to my prices. <BR>I can not understand why the Thai government is so confused about this system. when they want to peg the price to 3.20 an egg at the fresh market then this would mean the wholeseller delivering the eggs to the market in Bangkok and other big cities in the greater Bangkok area are doing this with no profit at all and here in the North 3 Baht profit per tray. But one has to understand this is not net profit, deduct another about 2 Baht for Diesel bill and the profit is 1 Baht per Tray in the North.<BR> Sorry, for 1 Baht profit I will refuse to get up at 4 o clock in the morning and stopp selling eggs at all.<BR><BR>Price for ungraded eggs, this is only a theoretical price, I dont no any farm or big company apart of CP selling ungraded eggs. CP sells eggs at the moment for 2.90 a pice but this eggs are very small because the henns are still relatively young.<BR><BR>Hope the government will read this information and clear there confusion, BTW Abhisit is related to the owners of CP, mayby a telephone call to his relatives could clear the confusion.<BR><BR>Bye all

[rubl]

BUSINESS

Egg producers decry import plan, see price slide by year-end

By PETCHANET PRATRUANGKRAI,

ACHARA PONGVUTITHAM

THE NATION

Published on April 28, 2011

The Hen-Egg Farmers, Traders and Exporters Association has slammed the government's plan to import eggs to combat rising retail prices, saying the measure would hurt farmers in the long run, while the problem of rising prices will be eased in any case before the end of the year.

Association president Narong Jiemjaibunjong said egg prices would drop soon after the end of |the rainy season. Widespread disease in layers caused by incle-|ment weather has lowered egg production in the past few months. However, the supply will increase soon after more hens have been imported.

Production is expected to increase to between 27 million and 29 million eggs per day by the third quarter from the current 24 million to 25 million eggs.

"The plan to import eggs is nonsense and will hurt farmers. The current high price of eggs has been caused by disease. However, it should be relieved soon," Narong said.

He added that the price of eggs in many countries had also increased because of higher production costs. For instance, the price of eggs in Malaysia is now quoted at Bt3.20-Bt3.40 each.

The import of eggs would also increase the risk of infections from overseas.

Narong said egg exports had dropped gradually in the past |three years under the govern-|ment's plan to keep prices low. Export volume is expected to be |70 million to 84 million eggs this year, a drop from 420 million in 2008, 350 million in 2009, and 144 million last year. Shipments now average 6 million to 7 million eggs a month.

Normally, Thais consume about 26 million to 27 million eggs a day. Narong pointed out that the daily output of eggs in Thailand would increase significantly to between 30 million and 40 million next year, which would hurt farmers because of an oversupply.

The government has failed to set up sustainable measures to deal with the changing price of eggs. It has only considered the problem from consumers' point of view, without concern for farmers, he said.

HEN DISEASES

According to the association, the price of eggs has increased to more than Bt3.10 each because of reduced supply resulting from hen diseases. Lower production has pushed up production costs by 15 per cent from Bt2.52 per egg to Bt2.90. Therefore, the retail price of eggs has to increase in the short term to cover losses for farmers and traders.

The association added that |the price of feed meal had also increased significantly this year because of higher crop prices. Feed meal accounts for 75 per cent of the production cost of eggs. The increased price of maize, which accounts for 55 per cent of layers' feed meal, from Bt5 to Bt10.85 a kilogram has created a higher burden for farmers.

To ensure balanced benefit for farmers and consumers, the association has called for the government not to intervene in the pricing of eggs. But if it insists on intervening, it should seek measures to reduce farmers' production costs rather than control prices.

Chaisaks Boonprasopthana-chote, chief executive officer of |Thai Foods Group, said farmers had to change their management practices to cope with environmental changes, particularly unusual weather.

"Farmers with good manage-ment practices will enjoy high |hen-survival rates, while layers |will produce eggs as normal. Successful farmers can reap benefits from the trend of rising prices as well," he said.

Chaisaks pointed out that the prices of hens and eggs would peak within the next two months in line with overwhelming demands from children returning to school and the high export season, particularly to disaster-hit countries.[thenation][/thenation]

http://www.nationmultimedia.com/2011/04/28/business/Egg-producers-decry-import-plan-see-price-slide-by-30154142.html