Nghe An farmers 'in dire straits' as pork prices plummet

(Baonghean.vn) -These days, pig farms and households in Nghe An are in dire straits because pigs are being purchased at low prices. In some places, farmers have to suffer a loss of 1 million VND for each pig sold.

Realizing that the development trend of pig farms is on the rise and prices are stable, in early 2016, Mr. Le Van Thong in hamlet 4, Quynh Luong commune invested in a closed farm with a cooling fan system that can eliminate odors; an automatic feeding system and especially a Biogas tank.

In October 2016, he started buying 1,200 breeding pigs from the South to raise. Mr. Thong determined to sell this batch of pigs on the occasion of Lunar New Year 2017. However, after 4 months, when the pigs reached the weight for sale, the price of live pigs dropped sharply, hitting bottom at 31,000 VND/kg, causing his farm to lose more than 1 billion VND.

“The family spent all their capital to invest in livestock farming. Unexpectedly, the price of pork before and after Tet was bought by traders at a very low price. On average, a pig weighs 100 kg, so we had to suffer a loss of nearly 1 million VND. Now we don’t know where to get the money to restore the herd,” said Mr. Thong.

Mr. Le Van Thong's 1,200-pig farm in Quynh Luong commune (Quynh Luu) suffered a loss of more than 1 billion VND due to a sharp drop in purchase prices. Photo: Viet Hung.

According to the farmers, each pig from the time of buying the breed until it reaches the weight of over 100 kg of meat costs 4 million VND. With the price ranging from 47,000 VND - 50,000 VND/kg like in early 2016, each pig will have a profit of 1 million VND. However, at the end of the year, the pork market price decreased due to China's limited purchases, making farmers both laugh and cry.

According to data from Quynh Luu Veterinary Station, the district's total pig herd grows from 46,000 to 50,000 pigs each year on average. Of these, about 20,000 are commercial pigs sold during Tet. Thus, farmers suffer a loss of nearly 20 billion VND.

Pork prices have dropped sharply, but animal feed and cattle feed prices remain unchanged. Photo: Le Nhung.

According to Mr. Vu Ngoc Quy - Department of Agriculture and Rural Development of Quynh Luu district, the main reason for the rapid drop in live pig prices is that at the beginning of the year, the price of pigs increased so much that farmers rushed to build barns, increasing their herds from 250 to 300 with farms having 200 pigs or more. On the other hand, the local consumption of live pigs is too dependent on the Chinese market, so when China reduces imports, domestic live pigs immediately become sluggish.

A paradox is that the price of live pigs has dropped dramatically but the cost of breeding pigs and industrial feed is still high, so after selling the pigs before Tet, most farm owners are at a loss and do not have enough capital to rebuild their herds. And although the price of live pigs has dropped sharply, at wholesale markets in the district, the price of pork remains high. Specifically, shoulder meat, rump meat, belly, and ribs range from 70,000 to 80,000 VND/kg, while lean meat costs from 90,000 to 100,000 VND/kg.

The paradox is that the price of live pigs is cheap, but the price of pork sold at the market is high, ranging from 70,000 to 100,000 VND/kg. Photo: Viet Hung.

Not only pig farmers in Quynh Luu but also other districts and towns such as Hoang Mai, Dien Chau, Yen Thanh... are "struggling" because of livestock farming losses.

Nhu Thuy - Viet Hung