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Deputy PM wades in as pork prices go belly up
A shortage of pork in the northern provinces has led to a government leader urging provincial authorities to establish economic cooperation to bring down the price of the meat.
Speaking at a meeting of the planning and finance sectors this month, Deputy Prime Minister Somsavat Lengsavad said the establishment of economic relations and cooperation mechanisms between the provinces would help to curb rising inflation.
According to the Consumer Price Index report issued by the Lao National Statistics Bureau, northern parts of Laos, particularly Luang Namtha and Oudomxay provinces, are facing a serious shortage of pork due to recent outbreaks of animal diseases.
The reduced supply of pigs to slaughterhouses has driven up the price of pork in the provinces and even had an effect on national average prices for the meat.
The latest report on CPI figures shows that the average price of Grade A pork rose by 3.74 percent in August, from 33,750 kip per kg to 35,000 kip per kg, mainly due to the short supply in the northern provinces.
The price of pork meat with fat attached rose by 6.54 percent, from 26,750 kip per kg in July to 28,500 kip per kg in August.
Mr Somsavat said “I would like the provincial authorities to establish economic relations as I don't hear reports about such cooperation in the media. All I see in the news are reports about friendly football matches between provincial authorities.”
He said Khammuan prov ince is the source of most pigs in Laos and the province should be able to supply the animals to Vientiane or other provinces facing a shortage, adding that such actions would help to curb rising food prices.
According to commerce officials, inter-provincial trade is limited, with many provinces focusing on growing sweetcorn for export despite there being a domestic market to produce animal feed using the crop.
Asian Development Bank Country Deputy Director Mr A. Barend Frielink said Laos should begin to focus on producing goods for the domestic market, as the major world economies of the US and Europe are facing economic difficulties.
Global economic woes would negatively impact on the Lao economy if Laos relies too much on exports, he said.
Many countries, including China, had realised the importance of the domestic market after suffering during the recent global financial crisis, he added.
A strong supply of goods in the domestic market also helps to ensure sustainable growth of the economy.
vientiane times
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