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Pig farm group supports fixed price structure
The Vientiane pig farm group is ready to cooperate with the Industry and Commerce Department to set fixed prices for live pigs and pork to prevent traders taking advantage of consumers.
Under the proposed price structure, 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.
This price structure would benefit everyone involved in the trade, including farmers and market vendors, after the domestic section made a price estimation.
The department invited representatives from the relevant sectors, including farmers, traders and market owners, to discuss the issue on Wednesday.
They plan to allocate a small number of markets in Vientiane as models for selling pork at the fixed price and require the pig farmers group to ensure a sufficient supply, the group's deputy head, Ms Lavone Philasayphithak, said.
She said the group agreed with the measures but called for the cooperation of slaughterhouses and traders to ensure effective implementation. In addition, Ms Lavone said some traders have proposed that the maximum pork price be raised to 30,000 kip.
She admitted that implementing the price structure will be difficult but the department sees it as necessary for the benefit of society. The department will formally announce the price structure through the media and relevant sectors before enforcing it at market.
Among the department's chief concerns is that some slaughterhouses and traders may not agree to cooperate at first, meaning there could be an insufficient supply to model markets.
Once the department announces the implementation of the price structure, anyone found to be infringing the regulations will be fined in accordance with the seriousness of the case.
Over time, the price of pork at market has risen continuously and the industry and commerce sector has been unable to control the situation. In the meantime, the sale price of pigs at farms has dropped because of increasing competition from illegal producers.
Many Lao pig breeders have seen their profits slump while middle traders and vendors reap the rewards of selling pork at markets.
This price structure will effectively regulate pig and pork prices, but will require strict implementation from the government and good cooperation from the private sector.
Pigs currently sell for 15,000 kip to 16,000 kip per kg at the farm, while pork in the market sells for 35,000 kip to 36,000 kip per kg.
vientiane times
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