August 31, 2007

Swine maladies push up pork prices in Ho Chi Minh City

Widespread pig diseases in the past eight months have stirred increases in pork prices in Vietnam, particularly in Ho Chi Minh City (HCMC), according to an official from the city's Department of Trade.

The maladies have also contracted herds and reduced supplies in major cities, according to Truong Trung Viet, deputy director of the Trade Department.

He said that pork supply in HCMC has been reduced from 270 to 30 tonnes a day, and thanks to city-based farms which was able to supply 15 to 20 percent of the demand. The city is reliant on pig supply from other provinces for the balance, he said.

He added that since the onset of 2007, pork prices in the city have increased by 20 to 30 percent.

In HCMC, one kilo of live pig meat is priced at VND28,000 (US$1.72) to VND34,000 (US$2.09), increasing by VND5,000 to VND8,000 compared to the price before outbreaks.

Viet said the HCMC situation have also caused supply declines and price hikes in neighbouring areas.

Van Duc Muoi, deputy director of Vissan, a key supplier of pork and other meat products in HCMC, said the meat supply from the central region is declining due to epidemic breakouts.

Early this month, the Ministry of Finance reduced taxes on imported products including meat to curb inflation. Duties on imported pork dropped from 30 to 20 percent, however, Muoi said the reductions will not curtail prices when it lands on markets and local consumers will still find expensive imported meats on the market.