PORK prices are not dropping anytime soon because of African swine fever (ASF) and differing policies acrosss the peninsula, traders said.

A trader said it was wishful thinking to expect the price to drop from the current RM17.60 per kg amid government optimism that pork supply was being restored.

Soo Yau Sheng, a well-established supplier, said traders are importing frozen pork to meet demand.

As a result, he told The Malaysian Insight the demand for local pork has sharply declined.

“Although imports may have resolved the demand issue, the consequence is the reduction in demand for local pork.”

Soo said this was “not a positive sign” as it could discourage pig farmers from increasing production in the long run.

Adding to the farmers’ difficulties is the absence of consistent policies among the states, he said.

He said farmers are hesitating over whether to reopen or after being ordered to shut down because of ASF.

“Each state has its own set of rules and regulations, leaving the industry perplexed.”

‘Inconvenient restrictions’

One of the primary grievances is Selangor’s strict policies to prevent ASF in the state, which remains free of the disease.

Traders from other states have voiced their frustration, citing “numerous complicated procedures” when transporting animals to Selangor slaughterhouses.

Soo added that the fear of ASF is also making farmers hesitant to ramp up production.

“If they experience another outbreak, they will incur substantial losses as they would need to shut down their farms until the cleanup is completed and their animals are culled.”

Soo said there is no government assistance for farmers in such a situation.

“I have been informed that pig farmers have not reopened their farms because of the uncertainty. The policies are unclear, and no one is willing to take risks.”

Butchers Association of Selangor and Kuala Lumpur chairman Lee Peng Hock dismissed the idea of pork prices declining as wishful thinking. He said the government lacks a plan to promote and expedite pig farming.

He complained that the supply chain is burdened by “inconvenient restrictions”.

“The deputy minister must take immediate measures to address the elevated local pork prices and continuous influx of frozen imports,” said Lee.

He was referring to Deputy Agriculture and Food Security Minister Chan Foong Hin, who had expressed confidence that pork prices would drop as supply was restored.

Lee said that the country has already lost half of its pig farmers, particularly in states like Malacca and Negeri Sembilan, where pig farming has been severely impacted by ASF.

In states with high demand for pork, such as Penang and Selangor, Lee said production is “negligible.”

“Perak is only state with significant production.”

However, Lee said permits are required to transport pigs across state borders, making farmers reluctant to move their animals out of the state.

Currently, Perak farms are fulfilling demand in Kuala Lumpur and states in the southern half of the country.

Lee said the government must not merely appeal to pig farmers to resume farming. Instead, it should take “concrete actions” to incentivise and promote pig farming.

“It shouldn’t be just superficial appeals, but actual efforts. Without improving the environment, there won’t be an increase in production. In fact, we might witness a decrease.”

High demand

Federation of Selangor and Kuala Lumpur Hawkers Associations complaints head Boon Kok Choon said there is demand for “fresh local meat,” which bodes well for the growth of the pig farming industry.

“Consumers prefer fresh local pork over frozen options. However, due to the high prices of local pork, those in the food industry are compelled to shift to other meats, like chicken, to cut costs.

“We hope the government will pay more attention to the volatility of pork prices.”

Deputy minister Chan estimated on July 31 that it would take approximately six months for local pork production to recover to previous levels.

“Once production rebounds and supply stabilises, pork prices will decrease.”

He said the government is committed to aiding farmers in transitioning to closed-system modern pig farming.

“We are also working on incentives and support for pig farmers, which will be announced soon.” – August 18, 2023.