March 23, 2012

Vietnam's Mekong Delta pig price down

Live pig prices in the Mekong Delta have dropped severely since the use of pig weight gain substances was detected at several farms sending farmers into a tailspin.

Pig prices in Tien Giang, Long An, Vinh Long and Dong Thap have continued the downward spiral for almost a half month. Traders are buying lean pigs at VND43-43.5 million (US$2,062-2,086) a tonne, and those with more fat at VND40-41 million (US$1,918-1,966), dropping VND4-6 million (US$192-288) per tonne against early this month, said Phan Van Thiet, a trader in Tien Giang.

Meanwhile, live pig prices have dipped to VND45-47 million (US$2,158-2,254) per tonne in An Giang, versus the previous VND50-51 million (US$2,398-2,445), said the provincial department of agriculture and rural development. However, in fact farmers are selling their pigs at VND42-44 million (US$2,016-2,112) a tonne.

Lower prices do not help push up consumption, though.

Nguyen Van Han, a trader in Long An, admitted: "Over the past half month, I only dare to buy pigs when large trading firms demand. However, they have recently stopped purchasing due to weak demand."

With pig prices plunging to record lows since the year's beginning, farmers make no money or even incurring losses as they said some VND4-4.2 million (US$192-202) is needed for a pig to gain a weight of 100 kilogrammes. As a result, many farming households are considering switching to other businesses.

Nguyen Thi Dieu Hien, a pig farmer in Tien Giang, said she will stop raising pigs for now because of the price volatility.

"Pig farmers have never been struggling like this before. In the past, even when pig prices dropped sharply, we still made profits, but this year we become penniless," said farmer Tran Van Tam in Tien Giang.

The same happens to pig farmers in Dong Thap, Vinh Long and Long An. Those who have yet to sell their pigs are afraid of losses while those having sold their herds hesitate to continue pig farming since they have run out of capital.