Live cattle prices hit rock bottom, but beef prices remain high.

Beef prices at the farm gate are hitting their lowest point in the past five years. Photo: Thanh Phuc

From the end of 2021 to the present,Live buffalo and cattle prices have been continuously falling sharply.Prices have now reached their lowest level in the past five years. Currently, the price of beef cattle at the farm gate is 55,000 - 70,000 VND/kg, nearly half the price before the 2022 Lunar New Year. The sharp drop in live cattle prices, coupled with the high prices of industrial feed, feed made from agricultural by-products, and veterinary medicine, has caused heavy losses for livestock farmers. Many beef cattle farms are forced to sell off their stock to recover capital. However, even selling their animals is difficult at the moment due to a lack of buyers.

However, at local markets, the prices of commercial buffalo and beef remain exorbitantly high. Specifically, in local markets in the city and surrounding areas, beef prices range from 180,000 to 250,000 VND/kg; buffalo meat from 170,000 to 230,000 VND/kg; and veal from 160,000 to 230,000 VND/kg.

Beef and veal prices at local markets have not decreased, remaining the same as when live buffalo and cattle prices peaked at 100,000 - 110,000 VND/kg. Photo: Thanh Phuc

In rural areas, the prices of beef, veal, and buffalo meat are 10,000-20,000 VND/kg lower than in the city. However, in supermarkets and organic food stores, beef and veal are priced at 220,000-280,000 VND/kg. This price remains the same as when the price of live buffalo and beef was 110,000 VND/kg. Processed beef and veal products such as beef sausage, veal sausage, beef jerky, etc., also maintain their previous prices: 280,000-300,000 VND/kg for beef sausage and veal jerky; 1,000,000 VND/kg for beef jerky…

Ms. Nguyen Thi Hoa, a self-made food businesswoman in Vinh City, shared: “Newspapers and television reported that the price of buffalo and beef has dropped sharply, to its lowest level in the past 5 years, but when I go to the market to buy buffalo, beef, and veal to make sausages and prepare dishes for customers, I see that the price hasn't decreased. Before Tet, the price of good quality beef was 250,000 - 270,000 VND, and now it's still around that price.”

With meat prices remaining unchanged, processed beef products such as ham and beef sausages are still priced high, at 280,000-300,000 VND/kg. Photo: Thanh Phuc

Explain the reasons whyLive buffalo and cattle prices at the farmDespite a significant drop compared to before, meat prices remain high. Small traders explain that because they buy cuts of meat from slaughterhouses and resell them, high purchase prices necessitate high selling prices to make a profit.

Ms. Nguyen Thi Toan - a traderbeef businessA resident of Nghi Phu commune (Vinh city) stated: “We buy cattle from farms, slaughter them centrally, and then supply them to small traders selling livestock meat at markets. Currently, the prices of buffalo, beef, and veal have decreased, but other costs such as transportation, labor, and slaughtering fees have increased by 1.5 times, or even double, compared to the same period last year. Therefore, when these costs are factored into the price of commercial meat, they push the price up. By the time the meat reaches consumers, it goes through another stage: small traders selling it at the market, so the price of buffalo, beef, and veal hardly decreases.”