Bangkok: Mr. Sittipan Thanakiatphinyo, President of the National Swine Raisers Association, is preparing to write a letter to the government, requesting clarification on the reopening of pork imports from the United States, fearing serious impacts on consumers and small businesses. He points out that prices have already dropped just from the news of the reopening.
According to Thai News Agency, Mr. Sittiphan stated that he has been following news of the US agreement to reduce import duties on Thai pork from 36% to 19%. While this reduction is welcome, he is concerned about the extent of the impact on pig farmers. Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the agreement would allow US pork imports to be limited to approximately 1% of domestic production. It has not yet been clearly stated whether this will be a zero-percent import rate or a higher rate. The association will write to the government to request a clear understanding of the agreement. Upon receiving this information, the association will discuss the matter and determine whether to negotiate with the government to mitigate the impact or make other proposals.
Mr. Sittiphan stated that the worrying impact on Thai people will be numerous, particularly the use of red meat accelerators, which the United States remains the only country to use. Thailand, under the Department of Livestock Development, has banned their use for over 20 years, due to the well-known impact on respiratory allergies and carcinogenicity. There are also reports that the government is lobbying the Food and Drug Administration (FDA) to lift the standard requirement that all types of food must not be contaminated with beta-agonist red meat accelerator chemicals and their salts.
Furthermore, if the government allows 1% of Thailand's pork production capacity of over 1 million tons to be imported from the United States, that would amount to imports of over 10,000 tons, significantly impacting the competitiveness of small-scale farmers, who face higher costs. Over a hundred thousand businesses could be wiped out. Furthermore, news of Thailand's import ban has led to a rapid drop in Thai pork prices.
"Currently, Thailand produces 1-2% more pork than it consumes. If we import more, we'll have a surplus, making competition difficult. Since the news of the imports, coupled with the sluggish Thai economy, prices have dropped rapidly. Live pigs at the farm gate have dropped to 50-60 baht/kg, resulting in losses due to costs around 70 baht/kg. Currently, Thailand produces approximately 20-23 million tons of pork per year. There are 150,000 farmers, including over 100,000 small-scale farmers. This group has higher costs than the US, making it difficult to compete," said Mr. Sitthipan.