Why is the price of live pigs decreasing, but the price of meat at Nghe An markets is still high?

Thanh Phuc DNUM_DBZBAZCACB 08:21

(Baonghean.vn) - After about 10 days of strong price increases, reaching 60,000 VND/kg in some places, pork prices in Nghe An have now begun to level off and gradually decrease, down to 43,000 VND - 45,000 VND/kg. However, the price of commercial meat in the markets is still high?

The paradox of pork price - meat price

Giá lợn hơi liên tục biến động, lao dốc chạm đáy, tăng vọt trở lại nay lại trên đà giảm mạnh. Hiện, giá lợn hơi xuất chuồng ở mức 43-45.000 đồng/kg. Ảnh: Thanh Phúc
Pig prices have been fluctuating continuously, plummeting to rock bottom, then skyrocketing again, and now on a sharp decline. Currently, the price of pigs for slaughter is at 43,000 - 45,000 VND/kg. Photo: Thanh Phuc

In late September, early October 2021,Pig prices plummet, in some places it was only 30,000 - 35,000 VND/kg. On October 24, the price of live pigs suddenly increased sharply, surpassing 55,000 VND/kg, in some places it reached 60,000 VND/kg, making farmers excited. But for the past 3 consecutive days, the price of live pigs has turned around and decreased to 43,000 - 45,000 VND/kg, making farmers feel like they are "sitting on fire" when the price of input materials has increased sharply.

Giá thịt ở các chợ vẫn neo mức cao. Ảnh: Thanh Phúc
Meat prices in markets remain high. Photo: Thanh Phuc

In contrast to the plummeting price of live pigs, the price of meat in markets and supermarkets has hardly decreased, remaining at a high level. Specifically, at the time when the price of live pigs hit rock bottom, down to 35,000 VND/kg, the price of meat only decreased slightly (10,000 - 20,000 VND/kg), fluctuating around 75,000 VND - 100,000 VND/kg. But as soon as the price of pigs inched up above the 50,000 VND/kg mark, the price of meat in traditional markets was immediately adjusted to increase sharply, the price of meat from the buttocks, shoulders, belly, and ribs fluctuated from 110,000 VND - 120,000 VND/kg; the price of feet, ears, and heads was 70,000 - 80,000 VND/kg.

According to our survey, on October 30, when the price of live pigs dropped to 43,000 - 45,000 VND/kg, the price of pigs in traditional markets remained the same, ranging from 80,000 - 120,000 VND/kg (depending on the type). The price of meat in clean food stores, supermarkets, and modern retail chains ranged from 120,000 - 135,000 VND/kg (depending on the type).

Hiện, giá thịt lợn cao gấp đôi giá lợn hơi. Ảnh: Thanh Phúc
Currently, the price of pork is twice as high as the price of live pigs. Photo: Thanh Phuc

At this level, the average price of commercial meat is twice as high as the price of live pigs. Compared to 2020, the price of live pigs has decreased by 60%, but the price of meat in the market has only decreased by 10-20%. The decrease in meat prices has not yet corresponded to the decrease in the price of live pigs.

Ms. Nguyen Thi Loi, a consumer in Vinh City, said: “Newspapers and radio stations continuously report that pork prices have dropped sharply, plummeted, and hit rock bottom, but people still have to buy meat at high prices when they go to the market. Compared to the peak of pork prices at a record high of VND100,000/kg of live pigs, pork prices have now dropped sharply, but meat prices have only dropped by VND15,000 - 25,000/kg. As for consumers, they find it unreasonable but do not know who to ask, so they still accept to buy at the price sold by traders.”

Middleman costs too high?

Nguyên nhân của sự chênh lệch giá lợn - giá thịt là do chi phí ở khâu trung gian quá cao? Ảnh: Thanh Phúc
The reason for the difference in pork price - meat price is due to the high cost of intermediaries? Photo: Thanh Phuc

Explain this difference betweenpig price and retail price of porkMs. Bui Thi Anh Ha - a pork trader at Doi Cung market (Vinh city) said: "Slaughterhouses supplying pork only reduced the price by 10,000 - 20,000 VND/kg of meat, so I only dare to sell at that reduction, I cannot reduce it more."

In order to limit intermediary costs, many traders have directly caught pigs at the barn and slaughtered them for sale to the market. Ms. Ha Thi Anh, a pork trader at Coi market (Hung Loc, Vinh city) said: "The price of pigs has decreased, we catch pigs from households and directly slaughter them, so we can reduce some costs, the retail price is 10,000 - 15,000 VND/kg lower than taking the meat to resell. However, the selling price must still be balanced with the general market price, it cannot be reduced much."

Theo các hộ chăn nuôi, chỉ khi nào thực hiện quy trình chăn nuôi khép kín từ trang trại - bàn ăn thì mới cân đối được giá lợn- giá thịt. Ảnh: Thanh Phúc
According to livestock farmers, only by implementing a closed livestock farming process from farm to dining table can the price of pork and meat be balanced. Photo: Thanh Phuc

The reason why pork prices are high for consumers is due to high intermediary costs. Accordingly, commercial pork sold on the market must go through many intermediaries: pig buyers, slaughterhouses, retailers, etc., so at each stage, costs increase, and by the time it reaches consumers, the price of meat has a large difference. In addition, due to the impact of the Covid-19 epidemic, some additional costs have caused intermediaries to increase meat prices to compensate, such as: labor costs, testing costs to prevent and control the epidemic, increased transportation costs when gasoline prices increase, etc.

Most recent,inAt a meeting to assess the current state of livestock farming, Deputy Prime Minister Le Van Thanh stated that the difference between the selling price and the price of finished products to consumers is unreasonable.Accordingly, the requestMinistries, branches and localities urgently have solutions to support consumption, gradually stabilize prices, and ensure the harmonious interests of all parties.Notably, the Deputy Prime Minister requested to organize inspections and clarify the costs of each stage in the value chain; inspect the difference between prices.pigSteam and retail prices at markets and supermarkets; review meat import and export; promptly handle violations if any.

Therefore, tofarmers do not lose, consumers are not exploited, it is necessary to strengthen inspection and control to prevent traders and slaughterhouses from forcing down prices on farmers, and to prevent traders from arbitrarily increasing retail prices of pork. In the long term, the authorities must guide people to organize a good chain of links to proactively "input" and "output" of products, not to depend on traders, leading to the paradox of farmers losing money because the price of live pigs is low, while consumers still have to buy meat at high prices.

“On average, each year, livestock households in Nghia Binh supply the market with about 300 tons of live pigs for localities in the district and neighboring areas such as Do Luong and Nghia Dan. However, the income of livestock farmers is very unstable when they have to depend entirely on traders, and at times the price is forced down. Therefore, our wish is to invest in a centralized slaughterhouse so that 20 livestock households in a closed group can have a process from farm to table, proactively sell, reduce intermediate costs, and supply meat to consumers at reasonable prices. From there, promote livestock development.”

Mr. Dang Van Dung, Head of the livestock cooperative in Nghia Binh commune, Tan Ky

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Why is the price of live pigs decreasing, but the price of meat at Nghe An markets is still high?
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