The Impact of US Pork Imports on the Thai Pork Industry: Multi-Billion Dollar Losses

The main reason for this risk is the high competitiveness of American pork. U.S. producers can offer their products at significantly lower prices due to lower production costs. Currently, the average price of U.S. pork is $1.70 per kilogram, while Thai pork costs approximately $2.30 per kilogram. This price advantage makes American products more attractive to Thai consumers and retailers.

If the market opens to imports, the consequences will impact all segments of the pork industry. Farmers already facing feed price and animal maintenance costs risk becoming more vulnerable. A decline in pork prices due to the influx of cheap products from the US could lead to the bankruptcy of many small farms. Feed crop producers will also suffer from reduced demand for domestic pork.

Pork and by-products could become a major topic in tariff negotiations between the US and Thailand, part of a broader US strategy to expand influence in Asian markets, which is causing concern among Thai producers. In response to the import threat, the Thai government may consider imposing tariffs on American pork, although this could provoke retaliatory measures. Thai farmers could also improve the quality of their products and develop unique offerings to differentiate themselves from the competition.

The Thai pork industry is on the cusp of major changes, and opening up to US pork imports could have catastrophic consequences. Losses of $3.46 billion are not just a figure, but a real threat to many farmers and workers in this sector. it is important for all stakeholders to begin developing strategies to minimize the negative impacts and maintain the resilience of the Thai pork industry in the face of global change.