The more pigs are raised, the more they lose, many pig farmers do not dare to re-raise their herds.

The more you raise, the more you lose.

In 2021, Ms. Phan Thi Lien in Do Thanh commune (Yen Thanh) sold 5 pigs. “At that time, the price of live pigs was high, so each pig weighing about 80 kg earned a profit of nearly 1 million VND. But the remaining 5 pigs sold in March did not make her happy. “The price of live pigs decreased, so I kept hoping for a price increase. However, not only did it not increase, but the price kept decreasing. Now I can't keep trying anymore because the feed is expensive and the pigs are ready to be sold and can't be kept forever. The 5 pigs sold lost nearly 1 million VND/pig. Currently, the family does not dare to re-herd, the price of piglets is expensive, the feed is expensive, and if the price of live pigs doesn't increase, the loss is too great,” Ms. Lien said, frustrated.

The barn of Mr. Dinh Van Dong's family in Dien Thai commune (Dien Chau) is currently empty and not being used for herd repopulation after being affected by African swine fever and the price of live pigs is falling. Photo: Phu Huong

Recently, in the general situation of the whole country, the price of live pigs in our province has decreased quite sharply. As a large livestock enterprise in Yen Thanh district, in addition to the animal feed production line, Thanh Do Animal Feed Production Company Limited (Yen Thanh) currently has a network of 16 "satellites" raising pigs. In addition to the main farm of the enterprise, the total herd is currently 3,000 sows, 30,000 pigs, selling about 200 pigs per day, mainly consumed in Nghe An and Thanh Hoa.

Mr. Nguyen Van Thanh - Director of the enterprise said: Recently, the price of live pigs has decreased sharply, at times down to 43,000 VND/kg; 1 month ago, the price increased to 47,000 VND and in the past 3 days it has increased to 50,000 VND/kg. "Because we raise pigs in a closed chain, the food is produced at the enterprise, so the cost of each kg of live pigs has decreased sharply, only at 42,000 - 43,000 VND/kg, so although the purchase price is low, the enterprise still has a profit, although not significant. However, for farms, especially household farms, everything is bought through agents at high prices, the cost of each kg of live pigs must be above 50,000 VND/kg, 1 pig sold at the farm loses from several hundred thousand to nearly 1 million VND", Mr. Thanh shared.

Pigs are raised in a closed system at Thanh Do Company's farm (Yen Thanh). Photo: Phu Huong

Low consumption, many factories closed, workers on leave, less meat consumption, while supply is still abundant, not only from domestically produced pork but also from imported eggs and meat from abroad, is considered the reason why pork prices have dropped sharply to the lowest level in the past year.

If in 2020, the purchase price of live pigs was up to 95,000 - 97,000 VND/kg, currently in Nghe An, the selling price has decreased by nearly half, to only 49,000 - 50,000 VND/kg; the price of live pigs of Vietnam Joint Stock Company has decreased by 1,000 VND to 55,500 VND/kg.

Many small-scale pig farmers in Thanh Chuong district have found ways to adapt, such as diversifying pig feed to reduce costs. Photo: Phu Huong

The basic purchase price is lower than the production cost, causing many farmers to have almost no profit, even suffer heavy losses. Having just sold nearly 400 pigs, Mr. Nguyen Trong Bang in Tan Phu commune (Tan Ky) lost nearly 400 million VND. "Raising 1 pig, at a time when the price of breeding pigs and feed is expensive like now, the total cost is about 5.5 - 5.6 million VND, while the selling price is 45,000 - 46,000 VND/kg, I lose nearly 500,000 - 800,000 VND for each pig". I have invested in barns and have a market, but at present I cannot re-herd.

From having hundreds of pigs in the barn, now the farm of Mr. Nguyen Van Hien's family in Thanh Linh commune (Thanh Chuong) only raises a few pigs to serve the family's needs. Photo: Phu Huong

Having raised pigs since 2004, at its peak there were hundreds of pigs and dozens of sows, but currently the farm of Mr. Nguyen Van Hien's family in Dong Thuong village, Thanh Linh commune (Thanh Chuong) only has a few pigs left to serve the family's needs and sell to neighbors.

Trend of decreasing household livestock farming

In recent years, Nghe An's total pig herd has tended to increase slightly, currently the whole province has about 967,000 pigs, the total output of fresh meat for slaughter in the first quarter of this year is estimated at 30,291 tons, an increase of 5.17% over the same period last year, of which, domestic consumption accounts for about 60-70%. With the characteristic of closed livestock farming in the form of concentrated farms at only about 1/3, pig farming in our province still has many shortcomings and limitations.

Concentrated, closed livestock farms are still profitable thanks to modern farming methods and low livestock product costs. Photo: Phu Huong

With low purchasing prices, at most times, closed-chain livestock businesses that can proactively source breeds and feed are still basically profitable, but small farms and small-scale livestock and household farmers can only break even or suffer losses.

Mr. Ngo Duc Quynh - Deputy Head of the Provincial Department of Animal Husbandry and Veterinary Medicine said: In the past, the Animal Husbandry industry has been heavily affected by the Covid-19 epidemic and African Swine Fever. Up to now, in the province, the disease in the pig herd has been basically well controlled, however, the price of input materials for production such as breeding animals, especially animal feed has increased very high, while the price of live pigs sold on the market has decreased sharply, causing difficulties, affecting the issue of herd restoration.

In recent years, Nghe An has had many mechanisms and policies to develop concentrated livestock farming, closed chains. In recent years, small-scale livestock farming and household farming have also been on the decline due to many reasons. This is considered a good sign, in line with the general trend to move towards a sustainable livestock industry. "In fact, although prices have decreased, concentrated farms are still profitable.

Along with the State's orientation and efforts, in order to have sustainable livestock farming, livestock farmers must invest in building large-scale farms, applying scientific and technical advances in livestock farming to limit diseases, reduce production costs, thereby increasing economic value and efficiency," Mr. Ngo Duc Quynh emphasized.

Mr. Nguyen Van Hien in Thanh Linh commune (Thanh Chuong) has mostly switched to raising breeding cows. Photo: Phu Huong

In an effort to reduce the price of animal feed, the Vietnam Animal Feed Association has recently proposed to reduce the import tax on soybean meal to support the domestic animal husbandry industry, which is facing great difficulties due to the sharp decline in product prices in the market. Currently, most of Vietnam's import tax on animal feed ingredients has been reduced to 0%; soybean meal alone is subject to a tax rate of 2% and is being proposed to be reduced to 0%. This is the item with the highest value in raw materials for animal feed production, while imported materials account for 85-90% of the cost.

Thus, in the coming time, the price of animal feed in Vietnam will likely decrease. At the same time, the economy gradually recovers and workers' incomes improve, which will help increase food consumption, including pork.

Phu Huong