August 18, 2023

Vietnam to launch pork trading floor in Ho Chi Minh city for direct farm purchases

Vietnam's municipal Departments of Industry and Trade, Agriculture and Rural Development, and the Mercantile Exchange of Vietnam have signed an agreement to establish a dedicated pork trading floor in Ho Chi Minh city, Vietnam, The Voice of Vietnam reported.

The new trading floor will operate through both spot contracts and futures contracts.

Nguyen Nguyen Phuong, Deputy Director of the Department of Industry and Trade, said that the trading floor has the potential to facilitate pork purchases directly from swine farmers, effectively eliminating intermediaries from the equation.

The platform is expected to curtail the practice of home swine slaughtering, which in turn contributes to elevating food hygiene and safety standards.

Ho Chi Minh city currently holds the distinction of being Vietnam's largest pork consumption hub, with an annual pork expenditure of approximately US$500 million. The current trading landscape sees traders controlling a significant 85% of transactions, wielding substantial influence in price determination across the market.

-      The Voice of Vietnam