The price of processed pork is three times higher than that of live pigs.

Pig farmers are extremely worried because the price of live pigs has plummeted to only about 30,000 VND/kg. However, on the market, processed pork is sold at three times the price of live pigs. According to experts, the manipulation of the market by private traders is a failure of the distribution and supply chain system.

In fact, the drop in live pig prices has been going on for over a month. But since then, the price of processed pork has shown no signs of decreasing. In fact, pork prices in supermarkets are even higher than in traditional markets.

Mr. Vu Vinh Phu, Chairman of the Hanoi Supermarket Association, said: “We recently conducted a survey in Ha Nam and the Ho Chi Minh City area. In these localities, the price of live pigs has dropped below 30,000 VND/kg. In particular, large, fat pigs are accumulating in large quantities because China has stopped importing them. However, the price of pork at local markets and street 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 staff are "sitting idle in air-conditioned offices" waiting for distributors to deliver the meat. Abroad, supermarkets contract directly with livestock farms. In Vietnam, meat has to go through many stages before reaching the supermarket. In addition, pork...Vietnam is currently burdened with too many types of fees, such as first and second quarantine inspections, transit fees, and warehousing fees, which drive up the cost of goods.

"Beyond the market, pork reaches consumers through at least three intermediaries: traders, slaughterhouses, and market vendors. Meanwhile, Hanoi has only established 8 meat supply chains for its residents, accounting for about 1% of the actual demand. Therefore, the fact that traders are controlling the market is a failure of the distribution system, causing heavy losses for both consumers and farmers. Ideally, pork prices should have decreased by 15-20%, following the downward trend of live pig prices," Mr. Phu said.

Meanwhile, the Vietnam Livestock Association is in a state of anxiety because the price of live pigs shows no sign of increasing. Mr. Nguyen Dang Vang, Chairman of the Vietnam Livestock Association, stated: “We are very worried because the price of live pigs has dropped sharply, currently averaging 29,500 VND/kg. However, the production cost is equivalent to 39,000 VND/kg. Farmers are suffering heavy losses.”

According to Mr. Vang, one reason is the excessively rapid growth of the livestock industry in 2016, reaching 5.8%. Another reason is that China stopped importing pork to control food safety.

In addition, Dr. Nguyen Thanh Son, Director of the Institute of Animal Husbandry, stated: "The cause of this situation is also due to the lack of coordination between producers and the market and businesses to create stable supply chains."

To solve this problem, experts suggest providing complete and timely market information so that livestock farmers can orient their production, avoid massive herd expansion, organize more distribution systems, and reduce intermediaries.

According to the Vietnam Livestock Association, it is necessary to accurately统计 the number of pigs being raised and advise farmers to avoid increasing herds, which could lead to oversupply.

In addition, "The Livestock Association will hold a meeting with export experts to discuss ways to export pigs for farmers. In fact, there is a shortage of pork supply in China, and pork prices are rising because they want to control food safety and hygiene," Mr. Vang added.

In addition, "It is necessary to reorganize the production and distribution systems into chains, limit intermediaries to reduce costs, and at the same time help livestock farmers avoid being exploited 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, businesses play a very important role in the integrated livestock farming model. For example, the Joint Stock Company is closely linked with livestock farmers. The company buys the meat products from the farmers and processes them into packaged meat, sausages, canned meat, etc. This approach helps farmers worry less about sales and ensures more stable prices.

According to HV/baotintuc