After weeks of increases, pork prices began dropping in Pattaya, driven by the economic law of supply and demand.
Prices for streaky pork hit 240 baht a kilogram at Rattanakorn Market, but this week dropped by 10 baht at the Prew Fresh Pork stall.
Why? Fewer people were buying expensive pork, so a supply glut developed, pushing prices down.
Stall operator Kamol Janjirawattana said people had speculated that pork would hit 300 baht a kilo by Chinese New Year next week. That’s not going to happen, he said.
He reported that pigs are backing up at farms that had done mass culling to stem an outbreak of African Swine Flu. Combined with higher food and transport costs, prices went up continually until the government stepped in and put a cap on prices.
The interventionist price controls apparently weren’t needed, as the free market will always regulate prices. Thais simply refused to pay the high prices and the price dropped as supply grew, Kamol said.
The vendor predicted this year he’ll sell only half the number of pigs, ten, than he did last year for Chinese New Year.
 |
 |
 |
