Pig prices skyrocket

Shortage of pork supply in many localities

In many provinces and cities,pig pricehas reached 70,000 VND/kg, an increase of more than 10,000 VND/kg compared to before. According to calculations, at a cost of 55,000 - 60,000 VND/kg, farmers have already made a profit. Therefore, when it reaches a high level of over 70,000 VND, specialized agencies will need to have solutions. One of the reasons for the sharp increase in live pig prices is the shortage of supply.

Many markets and supermarkets regularly adjust pork prices. Photo: VNA

At the Bac Giang CP Joint Stock Company's pork purchasing transit area, the number of pigs brought to the company for sale to the market has decreased by 15-20% in the past month. Due to the shortage of supply, prices at all stages will also increase. "Meat on the market depends on customers and customers have to slaughter and transport it to sell to stalls, markets or supermarkets," said Mr. Bui Van Thinh - Deputy Director of Bac Giang CP Joint Stock Company.

In addition to the reason of reduced supply, pressure on gasoline prices andanimal feedThe recent increase in prices has pushed up the price of live pigs. According to traders' calculations, the cost of producing a pig at the beginning of the year was only about 55,000 VND/kg, now it has increased to 60,000 - 62,000 VND/kg. In the past 6 months, the price of animal feed has increased 7 times, causing farmers to suffer losses.

"The source of food production will increase. With the current food prices and the increase in gasoline prices, the production of 1 kg of live pig meat is about 56,000 - 57,000 VND/kg. Therefore, to make a profit, the price of live pig meat must be over 60,000 VND", said Mr. Le Van Duong, Head of the Department of Animal Husbandry and Veterinary Medicine of Bac Giang.

One reason for the recent increase in domestic pork prices is that the high prices of Chinese and Thai pigs have also affected Vietnamese pork. Currently, the price of pigs in these two countries is close to 80,000 VND/kg. Therefore, due to lack of supply, increased input costs, and increased world prices, the price of pork in Vietnam has also increased.

The price of live pigs once reached 90,000 VND/kg at the most stressful time of the African swine fever epidemic due to a serious shortage of supply. The epidemic is under control, but if input material prices and market control are not well managed, that situation may recur at the end of this year when food consumption demand increases.

Solutions to ensure pork supply

For the past three months, a company in Bac Giang has been looking for at least three types of domestic raw materials that can replace imported raw materials.importto produce animal feed.

Due to lack of supply, increased input costs, and rising world prices, Vietnam's pork prices have also increased. Photo: VNA

Instead of using imported corn, many farmers use local corn. Instead of wheat bran, they use rice bran, and they also use naturally fermented tilapia and silver carp instead of fish meal. The alternative ingredients can reduce the price by at least 15-20% compared to the import price. "The company has brought in good quality and reasonably priced raw materials, so the cost has reduced by 5-10% of the cost of animal feed production, and the price of livestock has also decreased accordingly," said Mr. Le Van Hai, Director of Hai Thinh Feed Company, Bac Giang.

According to livestock farmers, at the beginning of May, a series of companies continued to adjust the price of animal feed, this was the 13th - 14th price increase by many businesses since the end of 2020 until now. The pressure on livestock farmers is not small, taking advantage of local raw materials is the way many livestock farmers are trying to maintain their production and profits.

Every year, Vietnam needs about 33 million tons of raw materials to produce animal feed. However, domestic raw materials can only supply about 13 million tons, about 40%, the rest must be imported. "In the current period, the supply is partially lacking compared to current demand. We coordinate with localities, breeders, and businesses to ensure the supply for domestic consumers," Mr. Duong Tat Thang, Director of the Department of Animal Husbandry, Ministry of Agriculture and Rural Development, emphasized.

In addition, in the coming time, the livestock industry will also gradually adjust the livestock structure towards increasing grass-fed cattle farming, reducing pig and poultry farming, and also reducing dependence on imported raw materials./.