Pig farmers lose as price-dive hits two-year low

A recent VnExpress survey showed that the price of live pig is down to VND46,000 a kilogram in many places, the lowest it has been in two years.

Though the price has inched up to VND49,000-50,000 per kilogram in some places, it is still 6% lower than in the same period last year.

According to the Department of Livestock Production under the Ministry of Agriculture and Rural Development, the average price for live pigs slid to VND48,000 per kilogram earlier this month.

The price decline, coupled with rising animal feed costs, has resulted in losses for farmers.

The average price of animal feed, which is mainly imported, has climbed 0.7-3.5% from last year and 45% from its pre-Covid level in 2019.

Hoa of Long An Province, who raised over 100 pigs in anticipation of the upcoming Lunar New Year (Tet) holiday, is devastated that prices are now 16% lower than rearing costs.

“I would incur a VND80 million loss if I sell all 100 pigs right now,” she bemoaned.

Meanwhile, lower consumption and oversupply are still driving down prices.

According to the livestock department, consumers squeezing their budgets due to high inflation have drastically reduced food consumption, including pork.

Weak demand and farms maintaining high production levels have caused pork supply to overflow.

While domestic supply piles up, the volume of pork and pork products imported in the first 11 months has jumped 85% year-on-year, totaling 102,000 tons and 104,500 tons, respectively, according to data from the livestock department.

Pork imported from some countries, including China, Thailand and Brazil, is also 30% cheaper than local pork.

“This [higher imports volume at cheaper prices] poses intense competition for local pork and a higher risk of spreading livestock diseases,” reported the department.

While prices of live pigs are in the ditch, prices of dressed pork sold by retailers remain unchanged.

Pork merchants explain that higher costs of shipping and butchering have offset the decline in live pig prices.

Hoa, a merchant at HCMC’s Go Vap Market, procures pork belly and short ribs from wholesale markets for VND125,000-135,000 per kilogram.

Adding in shipping and other costs, the selling price cannot be lower than VND145,000 a kilogram, she said.