June 20, 2012

Mekong Delta's pig farmers in dilemma

Over the last six months, a heavy burden has been placed on the shoulders of Mekong Delta farmers due to constant pig price drops.

"I have been a pig trader for more than five years, but never experienced such a tough time," said Phan Van Thiet, a pig trader in Cai Lay District, Tien Giang Province.

Live pig prices in Tien Giang, Long An and Dong Thap provinces are fluctuating around VND3.1-3.6 million (US$148-172) per quintal (100 kilogrammes). Particularly, high-quality pigs are being bought at VND3.5-3.6 million (US$167-172)  per quintal, while those of lower-quality are priced at VND3.1-3.2 million (US$148-153), a loss of VND500,000-700,000 (US$24-33) a quintal against last month.

Given the current prices, all farming households incur losses and have to abandon their farms for fear of further price drops. Meanwhile, with every quintal of live pig bought, intermediary traders have to cover a loss of VND600,000-1.3 million (US$29-62).

Nguyen Thanh Son, Deputy Head of the Husbandry Department under the Ministry of Agriculture and Rural Development, told the Daily that price volatility discourages pig farmers from making new investments, sending the livestock farming industry into crisis.

According to the department, there is likely to be a meat undersupply for the domestic market later this year. Therefore, local husbandry authorities must adopt measures right away to overcome this situation.

A representative of Than Cuu Nghia husbandry business in Chau Thanh District, Tien Giang said that if the uncertainties of the livestock farming industry were not eliminated, the chance of supply-demand imbalance in the future would be high.

Low prices, capital shortage and high input costs are the major problems currently facing the livestock farming industry, according to many animal husbandry firms and farming households.