What To Know
- As the August 1, 2025 deadline approaches for the United States’ imposition of a new 36% reciprocal tariff on Thai goods, pressure is mounting on Thai policymakers to reach a counter-deal.
- One of the most sensitive points of discussion in this Bangkok Business News report revolves around the inclusion of US agricultural products—especially pork and pork offal—as key bargaining chips in any free trade agreement.
Bangkok Business News: Thailand’s Pork Sector Faces Billions in Losses Amid Trade Negotiations
A major threat is looming over Thailand’s pork industry as trade discussions with the United States intensify. Kasikorn Research Center has sounded the alarm over the possibility of a 0% import tariff deal that would grant unrestricted access to US pork products—putting Thailand’s entire pork ecosystem at serious risk. The research warns that this could trigger losses exceeding 112 billion baht for the domestic sector, sparking disruption across the supply chain and potentially compromising national food safety standards.
US Pork will soon be a common sight in local Thai supermarkets and fresh markets
Image Credit: US Pork
As the August 1, 2025 deadline approaches for the United States’ imposition of a new 36% reciprocal tariff on Thai goods, pressure is mounting on Thai policymakers to reach a counter-deal. One of the most sensitive points of discussion in this Bangkok Business News report revolves around the inclusion of US agricultural products—especially pork and pork offal—as key bargaining chips in any free trade agreement.
Domestic Producers at a Disadvantage
Kasikorn Research points out a stark cost gap between the two markets. US pork producers benefit from large-scale industrial systems that allow them to price pork at approximately $1.70 per kilogram—well below Thailand’s domestic average of $2.30. If the Thai government agrees to waive tariffs, the market could be flooded with cheaper US pork, undercutting local farmers who are already struggling to stay afloat.
The consequences could be catastrophic. An estimated 149,000 pig farmers across Thailand, more than 97% of whom are small-scale operators, would face severe economic hardship. Many have already exited the industry—farmer numbers have plummeted by 21% from 2021 to 2024 due to relentless financial strain.
Ripple Effects Across Agricultural and Food Chains
Beyond pig farmers, roughly 5 million households involved in growing animal feed crops such as rice bran, corn, and broken rice are also at risk. A decline in local pig farming would cause a drop in demand for these crops, slashing market prices and reducing rural income.
The threat doesn’t end there. Local slaughterhouses and butchers, which rely on domestic pork supply, may be forced out of business if ready-to-cook US pork bypasses Thai processing lines. Restaurants and consumers might enjoy short-term price relief, but the long-term public health implications raise red flags.
Food Safety Concerns Over US Pork
One of the most pressing concerns is food safety. US pork has been associated with the use of beta-agonists, such as ractopamine, which are banned in Thailand. These growth promoters can pose serious health risks, including muscle tremors, irregular heartbeat, and even tumors—particularly for vulnerable groups like children, the elderly, pregnant women, and those with chronic illnesses.
Despite efforts by US negotiators to promote American pork under the “Made in USA” branding, the costs to Thailand’s agricultural sector and healthcare system could be severe. Experts stress that the risks extend far beyond economics.
Thailand must proceed with extreme caution. A rushed agreement might offer diplomatic ease but could endanger national food security, dismantle rural livelihoods, and invite long-term consequences that far outweigh short-term trade gains.
For the latest on the local pork industry, keep on logging to Bangkok Business News.
