Finished pork is 3 times higher than live pig

Pig farmers are 'restless' because the price of live pigs has dropped dramatically, to only about 30,000 VND/kg. However, in the market, the price of finished pork products is sold at three times the price of live pigs. According to experts, the fact that traders are manipulating the market is a failure of the distribution and linkage system.

In fact, the situation of pork prices falling has been going on for more than a month. But since then, the price of finished meat has shown no signs of decreasing. In fact, in supermarkets, pork prices are even higher than in the market.

Mr. Vu Vinh Phu, Chairman of the Hanoi Supermarket Association, said: “We have just conducted a survey in Ha Nam and Ho Chi Minh City. In these localities, the price of live pigs has dropped below 30,000 VND/kg. Especially large pigs and fat pigs are stuck in large quantities because China is no longer importing them. However, the price of pork in markets and flea markets has not decreased. Moreover, the price of pork in supermarkets is 5-10% higher than in the market.”

According to Mr. Phu, the reason is that supermarket import staff are “sitting under the table, sitting in the air conditioning” waiting for distributors to bring meat. In foreign countries, supermarkets sign contracts directly with livestock farms. In Vietnam, meat has to go through many stages before reaching the supermarket. In addition, brackish meatn Vietnam is facing too many fees such as: first and second quarantine; regional transfer fees, warehouse fees... causing prices to increase.

In the market, “Pork reaches consumers through at least three intermediaries: traders, slaughterhouses and butchers at the market. Meanwhile, Hanoi has only built 8 meat supply chains for the capital's residents, accounting for about 1% of actual demand. Therefore, traders controlling the market is a failure of the distribution system, causing heavy losses to both consumers and farmers. Meat prices should have decreased by 15-20% like the decline of live pigs,” said Mr. Phu.

Meanwhile, the Vietnam Livestock Association is "sitting on hot coals" because the price of live pigs has not shown any signs of increasing. Mr. Nguyen Dang Vang, Chairman of the Vietnam Livestock Association, said: "We are very "impatient" because the price of live pigs has dropped sharply, currently the average selling price is 29,500 VND/kg. Meanwhile, the production price is equivalent to 39,000 VND/kg. Livestock farmers are suffering heavy losses."

According to Mr. Vang, the reason is partly due to the overheated growth of the livestock industry in 2016, up to 5.8%. Another part is due to China stopping pork imports to control food safety.

Besides, Dr. Nguyen Thanh Son, Director of the Institute of Animal Husbandry, said: "The cause of the above situation is also due to the lack of coordination between producers, markets and businesses to create stable chains of links."

To solve this problem, according to experts, it is necessary to have full and timely information about the market so that farmers can orient their production, not increase their herds massively, organize more distribution systems, and cut down on intermediaries.

According to the Vietnam Animal Husbandry Association, it is necessary to accurately count the number of pigs being raised and advise farmers to avoid the situation of increasing herds leading to supply exceeding demand.

In addition, “The Livestock Association will hold a meeting with export experts to discuss ways to export pigs to farmers. In fact, the supply of pork in China is in short supply, pork prices are increasing because they want to control food safety and hygiene,” Mr. Vang added.

In addition, "It is necessary to reorganize the production system and distribution system according to the chain, limit intermediaries to reduce costs, and at the same time help livestock farmers not be forced to lower prices by traders," said Mr. Vu Vinh Phu, Chairman of the Hanoi Supermarket Association.

According to Dr. Nguyen Thanh Son, Director of the Institute of Animal Husbandry, enterprises play a very important role in the model of joint livestock farming. For example, the CP Company is closely linked with livestock farming households. Meat products from households are purchased by the company and transferred to the factory for processing into: packaged meat, sausages, canned meat... This method helps livestock farmers worry less about output and the selling price is also more stable.

According to HV/baotintuc