As the new year begins, pork prices are gradually recovering.
In the early days of 2018, the price of live pigs at farms was gradually recovering.
In Ngoc Lu commune, Binh Luc district, Ha Nam province, considered the largest pig farming "capital" in the North, the price of live pigs ready for slaughter has been gradually increasing since the end of December 2017. Particularly in the first days of the new year 2018, the price of pigs here is rising daily.
Currently, the price of live pigs is fluctuating between 33,000 and 38,000 VND/kg.
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| Pork prices are showing signs of rising. |
Ms. Hien, a pig farm owner in Ngoc Lu, said that although pig prices are showing signs of recovery, the rate of slaughtering is limited because the scale of pig farming in this "pig capital" has decreased significantly since pig prices hit rock bottom in the middle of last year.
Many households in Ngoc Lu commune no longer have the financial resources to continue pig farming due to heavy losses during last year's pig price "crisis." Animal feed dealers are also operating at a reduced capacity because farmers are losing money and finding it difficult to recover their capital, Ms. Hien shared.
Mr. Dung, a large-scale pig farmer in Hamlet 4, Ngoc Lu Commune, said that with the current prices, people have started to make a profit. Each pig weighing 100-120 kg yields a profit of about 300,000 - 400,000 VND, provided the pigs do not get sick or suffer from disease during the rearing process.
According to Thanh Nien newspaper, in Dong Nai, the province with the largest pig herd in the country, farmers reported selling prices at 30,000 - 31,000 VND/kg, an increase of 1,000 - 2,000 VND compared to 10 days ago. At this price, farmers are still losing approximately 3,000 - 4,000 VND/kg.
According to a report by the Ministry of Agriculture and Rural Development, the price of live pigs in Central Vietnam and the Central Highlands is around 33,000 VND/kg, while in Northern Vietnam it is 35,000-36,000 VND/kg, an average increase of 4,000-5,000 VND/kg. After several months of hitting rock bottom, the price of live pigs showed signs of recovery in the last months of 2017, but it was still not enough for farmers to make a profit.
It is predicted that pork prices will likely increase further leading up to the Lunar New Year as processing facilities are focusing on slaughtering animals to produce food products to meet people's holiday needs.
Another reason for the gradual recovery of pork prices is that the current pig herd stands at 27.4 million head, a decrease of 5.7% (as of the end of Q3/2017) compared to the same period in 2016. The slow recovery in pork prices is due to the large number of overgrown pigs, so although the total herd has decreased, the output for slaughter remains high.
While farm prices have just edged up, pork prices in the market have increased by 10-15% over the past month. According to surveys at markets, supermarkets, and stores, the common prices for some cuts are: leg 78,000-80,000 VND/kg, shoulder 72,000-75,000 VND/kg, fillet 112,000-120,000 VND/kg, ribs 65,000 VND/kg…
The total supply of pork in Vietnam is estimated to reach approximately 41 million head in 2018, thus balancing pork supply and demand, according to a forecast by Ipsos Business Consulting (a global market research company) at the end of the third quarter of 2017.
The agency also warned that if Vietnam does not properly control its sow population, the increased restocking when pork prices recover will soon lead to a market surplus crisis.
Speaking to Infonet about the supply and prices of livestock products during the Lunar New Year, Mr. Nguyen Xuan Duong, Deputy Director of the Department of Livestock, commented: Besides the specific difficulties faced by pig farmers, this year livestock products have basically met the domestic consumption needs of the past year.
According to Mr. Duong, to escape prolonged losses, participating in the supply chain is one of the urgent issues that livestock farmers need to address immediately.If we don't organize pig farming into a linked supply chain, the crisis for the pig industry will continue. Currently, it is very difficult to control food safety and hygiene, as well as supply and demand.
