Since the beginning of 2024, pork prices have surged to around 65,000 VND/kg in the second quarter, an 18% increase year-on-year. With such favorable conditions, have the livestock farming enterprises achieved a breakthrough in the first half of this year?
Leading the way in profits among the pig farming group is HAG of “Bầu Đức”, with a net profit of up to 270 billion VND in the second quarter, nearly 2.4 times higher than the same period last year. As usual, the fruit segment (specifically banana exports) contributed the most to revenue with more than 1,100 billion VND, double that of the same period.
In the livestock segment, HAG only achieved 320 billion VND in revenue in the second quarter, 28% lower than the previous year. However, the gross profit for this segment improved significantly by 68%, reaching 86 billion VND thanks to the benefit of lower animal feed prices.
As a result, HAGL’s net profit for the first half of 2024 was 485 billion VND, a 27% increase year-on-year.
Pig prices peaked at around 65,000 VND/kg in Q2/2024
BAF Agriculture, chaired by Truong Sy Ba, reported a 25% decrease in revenue in Q2/2024 due to a reduction in the scale of agricultural produce sales. However, the pig farming segment recorded impressive growth, with revenue increasing by 4.7 times compared to the same period last year, reaching 1,331 billion VND.
The owner of the “vegetarian pig” brand stated that having control over the feed source from two vegetarian feed mills, as well as the lower cost of feed ingredients in the second half of 2023, contributed to reduced production costs. The gross profit margin improved from 5.8% to 14.2%.
BAF also recorded outstanding growth in the first two quarters, with a net profit of 154 billion VND, 13 times higher than the previous year.
On the other hand, Dabaco (HoSE: DBC) experienced a setback, with profits plunging by 55% to 144 billion VND. This was mainly due to the absence of significant real estate revenue in this quarter compared to the same period last year.
Nevertheless, DBC’s pig farming business was also impacted by the fluctuating prices of feed ingredients and the complex situation of African Swine Fever (ASF).
Similarly, Dabaco’s net profit for the first six months was 218 billion VND, a substantial increase compared to the same period last year when it recorded a profit of only 6 billion VND.
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