Genesus Global Market Report – Southeast Asia, February 2024

Paul Anderson, Genesus Southeast Asia

paul.anderson_genesussoutheastasia@outlook.com

Philippines

The Philippines local swine industry is on-track in increasing the local pork supply in the country as the repopulation of swine farms is set to increase and continue in the coming months.

It’s no secret that the local pork production was affected due to continues infection of African Swine Fever (ASF) in the country. Hence, due to different efforts of the private sector and the government, the consumers are assured that we have a steady supply of pork despite a notable decrease in the country’s swine inventory after nearly five years of ASF battle.

Philippines President Ferdinand R. Marcos Jr. extended late last year the reduced Most Favoured Nation (MFN) tariff rates on selected commodities, including pork, covered under Executive Order No. 10 until Dec. 31, 2024.

According to the executive order, the reduced tariffs were extended to keep food prices stable due to the expected negative effect of the El Niño weather phenomenon and the continuing presence of African Swine Fever affecting domestic pork production. Thus, the tariff rates for pork will remain at 15 percent in-quota and 25 percent out-quota, keeping them favourable to importers.

Meanwhile, at least seven areas in Negros Oriental are still affected by the African Swine Fever (ASF), according to their Provincial Veterinary Office.

Earlier, provincial veterinarian Dr. Melody Vilan said that the number of ASF-affected areas in Negros Oriental dropped from 17 last year to seven this year.

Dr. Vilan said that the LGUs issued their individual executive orders to control, regulate, and monitor the pigs in affected areas to prevent the virus from spreading to neighbouring towns.

Genesus Philippines has restocked many herds after they depopulated due to ASF and the customer results are proving excellent with parity 1 averaging 12 weaned and parity 2 averaging 13,88 pigs weaned per litter compared to the Philippines normal average of less than 10 pigs weaned per litter. Genesus breeds are very suitable for the hot & humid climate of the Philippines due to their high appetite and robustness.

The Philippines will soon be enjoying more and more tasty pork offering the end consumer  a happy pork eating experience.

The liveweight market price has increased to around 195-200 PHP ($1.59 lb. USD).

Thailand

Prolonged loss for Thai pig farmers

Thai pig farmers are expected to sell their pigs at loss for another year as an oversupply of pigs is unlikely to be curbed easily.

Smuggled pork remains rampant in Thailand despite authorities are taking legal actions against smugglers, aided by corrupted customs and livestock officers.

It is estimated that over 10,000 containers of frozen pork from Brazil and Europe have been smuggled into Thailand, but only 10% of those was confiscated and destroyed. Mounting smuggled pork is suppressing the price of live pigs to fall below the cost over last year.

The Thai Swine Raisers Association, national grouping of pig farmers nationwide,  was trying since January to raise the price of live pigs but to no avoid. The price is stable at around THB 65/kg (83¢ lb. USD), while the cost ranges from THB 78-86/kg ($1 – 1.13 lb. USD).

As Chinese New Year is approaching in the second week of February, the price of live pigs should be increased because demand for pork is high during this time. Despite of that, the pigs is likely to fall further.

Apart from smuggled frozen pork, surplus of live pigs aggravates the problem. Prolonged loss has wiped out small and medium-scale pig producers in Thailand out of business almost entirely. Therefore, the surplus is coming from large-scale producers who are taking sizable share in the live pig and pork markets in the country.

Once an oversupply of live pigs and frozen pork is curbed, these major producers would be beneficial from the market correction, leaving smaller players deprived from the business in the long term.

Producers committed to the swine industry for the long term continue to upgrade their genetics despite facing the current financial crisis, Genesus has recently delivered 2 shipments of registered purebred Yorkshire, Landrace and Jersey Red Duroc to Thailand for 2 major swine producers. They want to keep improving their on farm performance, reduce the gain of production per kg and importantly improve the pork eating experience of our end customer the consumer, taste, tenderness and the satisfaction of eating pork is what counts.

Continuing to produce pale, lean Pork without taste is not the recipe for sustainable swine profits. It’s Taste. Big Taste.

Vietnam

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This post was written by Genesus