Pork prices depend not only on production, suppliers must innovate and invest, says local producer

The fresh pork counter at a Precious Food Products Sdn Bhd outlet that sells Borneo Fresh Pork meat products .
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By Wilfred Pilo

KUCHING, May 2: With the culling of a significant number of pigs across Sarawak in recent years due to African Swine Fever (ASF) and rising production costs, many pig farms in Sarawak have been forced to close down. The smaller number of pig breeders has had a severe effect on local pork supply , causing pork prices to inevitably increase.

DayakDaily recently sat down with Dr Ng Siew Thiam who is a director and veterinarian at Green Breeders Sdn Bhd, a prominent local pig breeder and pork supplier, to get his views on local pork production and supply, as well as the challenges it faces.

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Dr Ng Siew Thiam

Ng opined that insufficient supply due to the culling of pigs over the last two to three years in the State had a catastrophic ripple effect on sellers and especially consumers who ultimately are paying more than they ever had for pork.

He said many pig breeders did not anticipate the ASF outbreak as they were not ready and their farms did not have the system nor infrastructure to tackle ASF.

“The impact of culling has traumatised local breeders, and many farms closed. It could take a certain period of up to 7 to 8 years for breeders to come back but it must be with the right infrastructure and government policy so they can be self-sufficient again.

“So with insufficient local supply affecting pork prices here, (raising prices) is unavoidable for sellers and food operators as they too incur other operational costs,” he told DayakDaily.

Ng, who has outlets selling pork under Green Breeder subsidiary Precious Food Products Sdn Bhd, disclosed that their retail price for pork meat ranges between RM8 per kilogramme for pork skin to RM34 per kilogramme for pork tenderloin.

He said retail pricing for the pork sold under their brand Borneo Fresh Pork is warranted. On top of that, he added, their retail outlets are very conducive for shopping and he believed customers are willing to pay for the products and services rendered.

Ng shared that Borneo Fresh Pork is Green Breeder’s brand for Malaysia and Singapore. He also revealed that prices will decrease once production is increased.

He opined that in general, overpricing will only be solved once production levels revive. When Sarawak can produce a sufficient supply of pork again, pork prices will return to normal.

“It will definitely come down,” he asserted.

An outlet of Precious Food Products Sdn Bhd that sells Borneo Fresh Pork meat products .

Ng said if local consumers are willing to overlook the difference in taste, save costs and go for cheaper pork, they could always buy imported meat.

“Even for us, we sell imported meat from Europe, notably Denmark. Imported pork is frozen and tastes different, but cheaper by a few ringgit (per kilogramme). Our customers have choices.”

Ng, who also practises integrated modern farming in his businesses, said their outlets do not run out of fresh pork as they produce their own supply, so they do not have issues in supplying to their outlets.

He disclosed they also keep stock so if their shelves are empty, their shop assistants can always get the customers what they want from storage.

Borneo Fresh Pork price list.

Ng said if local suppliers and pork sellers want to grow their market share now and sustain their business, they need to be innovative and invest.

He asserted that in today’s environment, one has to take into account consumer behaviour, as it is no more just about prices alone, it is also about the premises and how the products are promoted.

Ng observed that on top of pricing and the selling environment, people still go for the taste of local pork meat.

“People and culture have changed. Consumers used to go early to buy pork at the butcher’s, but now not many people want to get up early to buy pork. So consumer behaviours determine the market and also their needs.”

In general, while local pork prices are high as cost of production is high, there is not enough sales volume due to the current size of the State’s population.

“Population and demand here are smaller and pork prices like any commodity in reality can only get cheaper with volume. To do that you have to be a very efficient producer and the trading system must be efficient.

“Now the industry is small and fragmented and with imported pork flooding the market with competitive pricing, it does take time to build volume and restructured the industry again.

“Once we can overcome this, and understand consumer behaviour, then we can have cheaper pork and its byproducts too,” he said. — DayakDaily

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