On July 10, Anova Feed JSC (Long An) recorded the highest pig price in Nam Dinh province, reaching VND 69,000/kg, while the lowest price was in Binh Dinh and Khanh Hoa provinces (VND 62,000/kg). The average price nationwide was VND 65,200/kg, a decrease of VND 2,000-3,000/kg from the peak at the end of June but still the highest in the past two years. Compared to the price of VND 50,000/kg at the beginning of the year, the current average price is 30% higher, ensuring a profit for most pig farmers after years of difficulties.
The high pig prices have caused a significant increase in pork prices in the market, especially for cuts favored by homemakers and those with less competition from imported products. For example, on July 10, G-Kitchen, a well-known pork shop in Binh Thanh District, Ho Chi Minh City, listed the price of pork belly with ribs at VND 239,000/kg, ribs at VND 275,000/kg, and pork belly at VND 189,000/kg. On Vissan’s e-commerce platform, VietGAP pork belly was priced at VND 210,000/kg, and herbal pork shoulder was VND 150,000/kg…
Pork prices are high compared to the same period in 2023
In traditional markets, the retail price of pork belly fluctuated between VND 150,000 and VND 160,000/kg, an increase of VND 10,000-20,000/kg compared to the beginning of the year.
Mr. Le Xuan Huy, Deputy General Director of CP Vietnam Livestock Joint Stock Company, said that the current selling price of CP pigs ranges from VND 63,000 to VND 68,000/kg (average of VND 66,000/kg). This price ensures a profit for pig farmers, especially since the smuggling of pigs across the border has been prevented. According to Mr. Huy, if this situation is maintained, a new price level will be formed in the pork market.
However, according to an expert in the livestock industry, the increasing environmental and biosafety standards in livestock production have made it challenging for businesses to expand their herds. “Especially, there are currently dozens of farms in Dong Nai province, including those contracted to raise pigs for large companies, that have had to cease operations or can only continue for a few more months due to failing to meet the standards,” the expert said.
Meanwhile, provinces near Ho Chi Minh City, such as Binh Phuoc and Tay Ninh, no longer have land available for concentrated livestock farming, forcing businesses to move to the Central Highlands region. This results in additional transportation costs and higher mortality rates, increasing production costs by about VND 3,000/kg compared to the previous farming regions.
Mr. Quach Phong, Head of Consulting at Ipos Vietnam Market Research Company, stated that in 2023, pig farming incurred losses, with even large enterprises suffering significant losses. The current high pig prices are partly due to the significant reduction in household farming. “With the expansion of herds by livestock companies, the pig price is expected to cool down by the end of the year, reaching around VND 60,000/kg,” predicted Mr. Phong.
Mr. Phong also noted that pork is no longer essential for family meals. If pork prices are too high, consumers will switch to other sources of protein and diversify their food sources, making it unlikely for pork prices to surge as they did in the past.
According to the report of the Ministry of Agriculture and Rural Development for the first six months of 2024, the total pig population in the country as of the end of June was over 25.5 million, an increase of 2.9% compared to the same period in 2023. “The business sector and linked production chains tend to stabilize and expand production when the output price increases; household farming faces challenges due to the complex situation of African swine fever in many localities,” the report commented.
Import rebounds
According to the Import and Export Department of the Ministry of Industry and Trade, in May, pork imports increased again after three consecutive months of decline. Businesses imported 11,330 tons of pork, worth $25.19 million, an increase of nearly 30% in volume and 11% in value compared to May 2023. The average import price of pork was about VND 56,500/kg, much lower than the domestic selling price. In the first five months of the year, pork imports reached 30,700 tons, valued at $68.57 million, up 3.9% in volume but down 6.7% in value compared to the same period in 2023. Brazil, Russia, Canada, Germany, and the US are the five largest suppliers of pork to Vietnam.
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