Live pork prices in Cambodia have seen a slight rebound following the government's temporary suspension of frozen meat imports. Currentl...
Live pork prices in Cambodia have seen a slight rebound following the government's temporary suspension of frozen meat imports. Currently, live pigs are priced between 10,000 and 10,500 riel per kilogram.
Srun Pov, President of the Cambodian Livestock Breeders Association, revealed on May 16 that the price of live pigs had plummeted to 5,000 riel per kilogram two to three years ago. This drastic drop led to significant losses for farmers, causing many to cease feeding operations. However, since the government's intervention on March 12, 2024, by halting imports of offal and frozen meat, prices have recovered to around 10,000 to 10,500 riel per kilogram.
While this price recovery offers some relief, it is not significantly profitable. Srun Pov suggests that to offset years of losses, local pig farmers need a profit margin exceeding 1,000 riel per kilogram. Despite high productivity, the sector remains fraught with risks, particularly from diseases such as African swine fever. Currently, production costs have escalated to between 9,200 and 9,500 riel per kilogram.
"The production cost is 9,200 to 9,500 riel per kilogram, so if farmers sell at 10,000 to 10,500 riel per kilogram, they can accept it, but it is not very profitable," Srun Pov stated. He emphasized the high vulnerability of the livestock sector, noting that an outbreak of African swine fever could decimate herds regardless of investment levels. A profit margin of 1,000 to 2,000 riel per kilogram is deemed necessary for farmers to sustain their operations.
Despite the slight improvement, Srun Pov indicated that the pig farming sector in Cambodia has yet to achieve market stability and affordable prices. Farmers are cautiously optimistic, monitoring both the longevity of current prices and the government's support.
Srun Pov also noted that there is no current shortage of domestic pigs, reducing congestion in the market. However, he highlighted ongoing issues with small-scale smuggling of frozen meat from Thailand via taxis, buses, and motorbikes.
The government’s six-month moratorium on frozen meat imports has been deemed successful. On behalf of Cambodian farmers, Srun Pov expressed gratitude to the government for its preventive measures. The suspension, effective from March 12 to September 12, 2024, covers a wide range of frozen products, including beef, buffalo tongue, chicken liver, and various offals.
During this suspension period, Prime Minister Samdech Hun Manet has urged traders to shift from purchasing foreign frozen meat to local products. This shift aims to alleviate the burden on domestic farmers and bolster the local livestock sector.
As the suspension continues, the focus remains on achieving long-term stability and profitability for Cambodian pig farmers, ensuring they can withstand the high risks associated with livestock farming.
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