March 31, 2005

Vietnam's hog industry finds opportunities in bird flu crisis

Bird flu outbreaks in Vietnam might have crippled the local poultry industry, but the crisis proved to be a blessing in disguise for hog trade in the country.

While poultry prices plunged in recent months, hog prices have risen 15 percent from 2004.

Hog farmers and feed mills planned to expand production, as pork prices were expected to remain firm at least for the next 12 months.

Hog production rose by one million heads in the previous year, and similar growth was projected in 2005. Total hog production in 2004 stood at 26 million heads.

According to Tran Trong Chien, chief representative for Vietnam at the US Grains Council, increasing demand from the hog industry could boost commercial feed production in the country to about 4.5 million tonnes in 2005, up 10 percent from the previous year.

The hog industry represented about 60 percent of the total feed demand in Vietnam.

Chien said the bird flu situation in the country was difficult to control and that the problem could linger for more than a year.