Nghe An: Pig prices hit rock bottom, farmers hesitate to restock

Pig prices hit record low

According to calculations, with the current price, farmers lose from 500,000 - 700,000 VND/pig sold. Photo: Thanh Phuc

Having just sold a herd of 10 pigs, each weighing an average of 75-80kg at a price of 60,000 VND/kg, Ms. Nguyen Thi Hong (Thanh Mai, Thanh Chuong) said: "At the beginning of July, the price of pigs was 65,000 - 67,000 VND/kg. I hesitated to sell, but now it has dropped sharply. At this price, not only will I not make a profit, but I will also have to make up for the loss."

According to Ms. Hong's calculation, this litter of pigs will be herded whenpiglet priceThe price is still high, 300,000 VND/kg, each pig costs 2 - 2.5 million VND (7-8kg weight). From raising to selling, she has to invest 3 million VND in industrial feed and about 400,000 VND in electricity, water, vaccines..., calculating the cost, each pig costs about 5.5 million VND, not including the cost of raising. According to the current price of pigs, she can sell 1 pig for about 5 million VND, so each pig still has to lose 500,000 VND.

With low pig prices, large-scale farms that are proactive in providing pig breeds still have slight profits. Photo: Thanh Phuc

After a long period of being "empty" due to the epidemic, the family of Mr. Pham Van Tue, Tan Hoa hamlet, Nghia Hanh commune (Tan Ky) started to...herd restorationfrom February 2021 with a total herd of 18 pigs. “At that time, the price of pork was still high, so we hoped that this batch of pigs would bring in profits, making up for the losses caused by the epidemic. However, now selling this batch will result in a loss of tens of millions of dong,” said Mr. Tue.

According to a survey, the current price of pigs in localities in the province ranges from 55,000 VND - 62,000 VND/kg (depending on the type of pig). The price of pigs in large farms, raised under biosafety practices, is only at 60,000 VND - 62,000 VND/kg, down 40,000 VND/kg compared to the time of price fever (May 2020). This is the lowest price in the past 2 years, lower than before the outbreak of African swine fever.

Mr. Nguyen Manh Hung (Nghia Thuan, Thai Hoa Town), a trader specializing in purchasing pork in Nghe An, said that at this time,pig prices are plummeting, the price has dropped to the lowest level in the past 2 years. In the past 10 days, the purchase price of live pigs has had to be adjusted 7 times, each time by 1-2 prices according to market rules. With the current price, large-scale farms still have a slight profit, while small-scale farming models have to accept losses.

Although pork prices have dropped to a record low, meat prices in markets remain high and consumption is slow. Photo: Thanh Phuc

According to the explanation, the reason why pork prices are low is because afterAfrican swine feverOnce the control is in place, companies, farms, ranches and household farms are focusing on repopulating their herds. As a result, there are quite a lot of pigs ready to be sold, plus the number of pigs and frozen meat imported from other countries, and the price of pigs in Thailand and China is also "hitting rock bottom", so the supply is increasing locally, pushing the domestic price of pigs down.

Meanwhile, the complicated development of the Covid-19 epidemic has made it difficult to transport pigs. On the other hand, the food and beverage business has been stagnant, collective kitchens and schools have been closed, so the demand for pork has also decreased sharply. This has also contributed to making pork more difficult to consume, causing prices to drop.

Although the price of live pigs has hit rock bottom and reached its peak, the price of pork pieces and finished pork products has dropped "drop by drop", only adjusting very low. Specifically, the price of pork in the traditional markets still fluctuates from 120,000 - 150,000 VND/kg depending on the type, down about 5,000 - 10,000 VND/kg, while the price of live pigs has decreased by 20,000 - 30,000 VND/kg. The reason is said to be that from the farm to the consumer, the price of meat has to go through too many intermediaries, so the price of meat is pushed up; the price of pork is low but consumers still have to buy meat at high prices.

People are afraid of re-herding

Currently, the price of piglets remains high, ranging from 1.8-2.5 million VND/pig. Photo: Thanh Phuc

The price of live pigs has dropped sharply, but the price of piglets is still high, ranging from 180,000 VND - 250,000 VND/kg depending on the type (super lean pig, crossbred pig or Mong Cai pig), a piglet costs about 1.7 - 2.5 million VND. Ms. Le San Na, who specializes in buying and selling piglets in Tuong Son (Anh Son) said: "Compared to a few months ago, the price of piglets has decreased slightly, about 10,000 - 15,000 VND/kg, but compared to the price of pork, it is still high. For the past 2 months, the number of piglets sold has been slow and decreased compared to before, the reason is that farmers are afraid of losses so they do not dare to re-herd."

On the other hand,feed pricesThe prices of animal feed ingredients have increased rapidly in the first months of the year. According to the Department of Animal Husbandry, on average in the first 6 months of the year, the prices of animal feed ingredients have increased compared to the same period in 2020, causing the prices of animal feed to increase sharply. Specifically, the price of complete mixed feed for pigs from 60 kg to slaughter is currently 10,785.8 VND/kg (up 14.6% over the same period last year). According to forecasts, the trend of animal feed prices will increase in 2 more waves of about 5% in the coming time.

The price of animal feed has skyrocketed and is expected to show no signs of decreasing, causing farmers to face "double" difficulties. Photo: Thanh Phuc

The high initial investment cost while the output price of pork is continuously falling makes people not dare to "spend a lot" when re-herding. Mr. Pham Van Tue, a farmer in Nghia Hanh (Tan Ky) said: "Up to now, raising livestock has been the main income of the family. Now, if we leave the barn empty and start another herd, we don't know how the price of pigs will fluctuate. The scale of the family's barn can raise 30-35 pigs, but after selling out this batch, we only dare to raise 5-7 pigs."

Pork prices have dropped, feed prices and piglet costs are high, many households are afraid to re-herd so they have to leave their pigsties empty. Photo: Thanh Phuc

According to recommendations from the authorities, pork prices will improve in the near future, but there will certainly not be a rapid and sudden increase like in the past. People are afraid that restocking will reduce supply in the coming time, so in order to regulate market supply and demand, farmers need to proactively change their business methods, apply technology to reduce production costs, and form a chain of livestock farming, reduce risks and reduce losses./.