August 3, 2026
 

BAF Vietnam lifts pig output 61% in H1 2026 despite profit dip from lower pork prices and expansion costs

The Vietnamese integrator pressed ahead with new high-tech farm commissioning and a third feed mill, taking its total herd to around 900,000 head even as falling farmgate prices and rising interest costs squeezed margins.

BAF Vietnam Agriculture Joint Stock Company posted consolidated net revenue of VND 3,899 billion (approximately US$153 million) in the first half of 2026, up 55% year on year, while pig production reached approximately 532,000 head, a 61% increase from the same period last year.

Gross profit rose 31.4% to VND 797.5 billion (US$31.3 million), but after-tax profit fell approximately 9% to VND 310.9 billion (US$12.2 million). The company attributed the profit decline to lower average pork prices, higher borrowing costs, and the fixed depreciation and operating expenses generated by newly commissioned farms that have yet to reach optimal capacity.

BAF also continued investing in biosecurity measures and restocking as a precaution against African swine fever, which it described as adding necessary but profit-dilutive costs in the period.

On the feed side, the company's third feed mill, located in Vietnam's Gia Lai province, commenced operations during the half, bringing BAF's total designed feed production capacity to 750,000 tonnes per year. The company said a reliable internal feed supply is central to strengthening its integrated production chain.

Several new high-tech farm projects also entered operation or advanced construction during the period. The Tay An Khanh farm in Tay Ninh province, with capacity for 60,000 fattening and weaned pigs and annual output of approximately 150,000 commercial pigs, is now operational, as is the Giai Xuan farm in Nghe An province, housing 5,000 breeding sows and 60,000 fattening pigs per batch. Larger projects under construction include the Gia Han facility in Quang Tri province, designed for 15,000 sows and 450,000 commercial pigs per year.

BAF's food processing segment accounted for approximately 20% of revenue in the half, with the company continuing to develop its anfarm retail brand for chilled and processed pork. The company said profit pressures in the second quarter were largely transitory and linked to the current investment cycle, and that efficiency improvements are expected as new farms reach full capacity.