Pork glut still hurting farmers

Pork glut still hurting farmers
Deputy Agriculture and Cooperatives Minister Chaiya Phromma (Government House photo)

The smuggling of pork has caused prices to collapse in the domestic market, hurting the incomes of pig farmers all across the country.

In an interview with the Bangkok Post, Deputy Agriculture and Cooperatives Minister, Chaiya Phromma, vowed to clamp down on smuggling to protect farmers’ livelihoods, adding the illegal activity puts the general public at risk of exposure to contaminated products.    

How did the crackdown start?

Last year, there was a serious shortage of pork in the local market due to the outbreak of African swine fever (ASF) in the region.

In response to the scarcity, some companies decided to illegally bring in pork from overseas so they could cash in on the high demand.

At the time, Thailand did not have a policy to import pork from abroad, as the previous administration wanted to promote the domestic pig industry. 

Soon after assuming office, Prime Minister Srettha Thavisin announced a crackdown on pork smuggling, ordering various agencies to deal with the problem.

This order led to the seizure of 161 shipping containers at Laem Chabang Port in the middle of this year.

The containers were found to hold 4,025 tonnes of pork worth about 483 million baht.

Our investigation has led us to the culprits, which included employees of shipping companies, import companies, investors, wholesalers and more.

The case is now under investigation by the Department of Special Investigation.

Where did it come from? 

DSI’s investigation found some of the pork was brought in from Brazil, other products from all over Europe. 

We believe the illegal shipment originated from supermarkets in these regions, which are obliged to destroy their frozen meats after a year or so in storage.

Instead of getting destroyed, the “expired” pork was shipped to be sold in developing countries instead, including Thailand.

The companies involved in the smuggling declared the containers seized in Laem Chabang contained frozen salmon. 

We believe that over 2,000 shipping containers have been imported during the course of the year, causing the domestic prices of pork to collapse.

We are also working with the Ministry of Finance to check these companies’ tax payment records, to calculate the losses incurred by the state from the false customs declarations.

What has happened to it?

We destroyed a huge amount in September by burning and/or burying it in landfills, but local communities have protested out of fear such methods will have an impact on their health and the environment.

We’ve asked the military for assistance in preparing a disposal site.

The Royal Thai Navy has agreed to set aside an area on their land, which will be prepared and supervised by the Department of Livestock Development, the Department of Customs, the Department of Special Investigation and the private sector.

How’s the probe going? 

The Department of Special Investigation is trying to find the mastermind behind the smuggling. The Ministry of Agriculture and Cooperatives cannot provide any information on the matter, as it is an ongoing investigation.

This was a complex operation backed by a national crime syndicate with a lot of capital. Any politicians found to be involved will face strict legal action.  

Now is not the right time to point a finger at anyone, as the investigation is still ongoing. I’m sure we will catch the big fish.

Was a giant retailer involved?

To be fair to the retailer that is currently under investigation (a reference to Makro, which was raided by DSI earlier), authorities were able to find all invoices and documents pertaining to their imported pork.

It is a publicly listed company, so everything had to be done transparently.

While it did at one stage source pork intestines from a company whose owner has been arrested on smuggling charges, records indicated they terminated the contract due to concerns about quality.

What’s the plan for farmers?

We plan to launch soft loans to pig farmers so that they can restart their businesses.

To prop up the price of live pigs in the market, the ministry will continue its crackdown on pork smuggling. Aggressive suppression is the solution.

Things are now on the right track.

People won’t have to worry about food safety because the Department of Livestock Development has come up with a series of good practices for livestock farmers.

Moreover, the ministry will also reach out to other countries so pig farmers can sell their livestock in underserved, alternative markets as an alternative source of income.

Currently, the agriculture sector contributes about 8.5% to Thailand’s Gross Domestic Product (GDP), 65% of which is from crops while less than 20% is from livestock.