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Vientiane to set fixed pig, pork prices
Vientiane Industry and Commerce Department is planning to set fixed prices for live pigs and pork to prevent traders taking advantage of consumers.
Under the proposed price st ructure, farmers would sell live pigs for 15,500 kip to 16,500 kip per kg, which would enable slaughterhouses to make a profit of 20,000 kip when they sell the meat. Market vendors would be required to sell pork for a maximum of 28,000 kip per kg, department official Mr Noumun Phothisane said.
This price structure wo uld benefit everyone involved in the trade, including farmers and market vendors, he said.
The department is directing Industry and Commerce Offices in Vientiane's nine districts to collect information on live pig and pork prices as a basis for discussions with farmers and businesses, he added.
“After each party has agreed to this measure we will sign a memorandum of understanding after which the department will announce the implementation of the regulation,” he said. Anyone found to be infringing the regulation will be fined in accordance with the seriousness of the case.
Breeders and others involved in the business will be required to register. If they fail to do so, the department won't permit them to engage in market trade.
With the rapid rise in the demand for pork in recent years, the numbers of pig breeders has increased, but some have not registered, Mr Noumun said.
Over time, the price of pork at markets has risen continuously and the industry and commerce sector was unable to regulate the situation. In the meantime, the sale price of pigs at farms dropped because of increasing competition from illegal producers.
Many pig farms closed as they were unable to make a profit and were unable to source any funding to continue their business, according to the Vientiane Pig Farm Association.
Foreign pig breeders are operating farms illegally in Vientiane, the association said, and independently set prices, which skewed the market and cut profits.
Mr Noumun believes the proposed price structure will effectively regulate pig and pork prices, but it will require the cooperation of various government agencies and the private sector.
Implementation of the regulation may be difficult at first, but it will ultimately benefit the commerce sector and consumers, he added.
Pigs currently sell for 15,000 kip to 16,000 kip per kg at the farm, while pork in the market sells for 36,000 kip to 38,000 kip per kg.
The Vientiane market requires about 400 pigs per day but at present there is an oversupply.
vientiane times
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