Pork prices have risen sharply; could this be due to price gouging by businesses?

Businesses are still aggressively restocking their herds.

The impact of African swine fever has caused pork prices to surge dramatically in recent months, jumping from 30,000 VND to 85,000 VND per kilogram. According to experts, several factors have contributed to this sharp increase in pork prices, including hoarding and price manipulation.

Currently, many farms in Nghe An province still maintain large herds with significant numbers of animals. (Photo: Xuan Hoang)

Mr. Dang Van Minh, Head of the Livestock and Veterinary Department, stated: Before the African swine fever outbreak, Nghe An province had approximately over 900,000 pigs. After 7 months of the outbreak, Nghe An has culled nearly 94,000 pigs, accounting for about 10% of the total herd. However, the total weight of culled pigs was 4,735,727 kg, representing only 3.62% of the total live weight of pork produced for slaughter.

As of December 27th, 80% of the 366 communes in Nghe An province have been declared free of the disease. Currently, 70 communes remain free of the disease for more than 30 days, mostly having been free of the disease for 15-20 days.

Regarding restocking after the outbreak, Mr. Dang Van Minh stated that the majority of pigs infected with the disease in Nghe An province recently were from small-scale farmers and some family farms. According to regulations, small-scale farmers and family farms are not allowed to restock if they do not meet all disease prevention requirements. Therefore, restocking after the outbreak is mainly carried out by large farms and enterprises. Consequently, large enterprises and farms in the province are the main source of pork supply currently and during the upcoming Tet holiday.

Pork prices have skyrocketed in recent months. (Photo: Quang An)

Using frozen meat to combat price gouging.

Mr. Doan Tri Tue, former Head of the Technical Department (Department of Agriculture and Rural Development), stated that the majority of pigs culled due to African swine fever in recent times were from small-scale farms in residential areas. Currently, farmers are not allowed to restock their herds. Therefore, taking advantage of this situation, pig farming businesses are hoarding goods and inflating prices. As a result, pork prices on the market have skyrocketed in recent months.

According to Mr. Doan Tri Tue, one of the solutions to combat price gouging is for consumers to use frozen pork. Currently, a considerable amount of frozen pork is imported and still retains its nutritional value.

With rising pork prices, many people are starting to switch to frozen pork. Photo: Thanh Phuc

Recently, Minister of Agriculture and Rural Development Nguyen Xuan Cuong stated that core enterprises should not only supply the best breeding stock and feed but also take control and lead the market according to market principles. Therefore, excessively high prices should be avoided as they can backfire. If prices are too high, consumers will choose other food products. Furthermore, excessively high prices will lead to an influx of goods from other regions, resulting in the loss of market share in our own backyard.

Regarding the food supply for the Lunar New Year and the months following it, Minister Cuong stated that there are very positive signs. Localities are focusing on restocking and diversifying food sources such as poultry, livestock, and seafood, and the supply from now until Tet is increasing. Furthermore, farmers have learned from the recent African swine fever outbreak, so hygiene and safety measures are very strict, especially in environmental management. This shows that farmers have raised their awareness, so restocking will minimize the risk of disease and reduce the risk of pork shortages at the end of the year.

Xuan Hoang