September 28, 2015

 

FTA with EU spurs surge in Vietnam pork imports  

 

An eFeedLink Exclusive

 

  

Price summary

 

Live hog prices in the southern region on downtrend.

  

Procurement price of live hog over 80kg (Expressed in VND 1,000/kg)

 

W30

31

W32

W33

Dong Nai

45000

45500

44000

44000

Binh Duong

46500

46000

46500

46000

Can Tho

44000

44500

44000

44000

HCM

45000

45500

45500

45500

Hanoi

49000

49000

49000

49000

(VND1,000 = US$0.0447 as of Aug)

          

   

Market analysis

 

The price of live hog in the southern region was on the downtrend in August as it was found out that many pig farm owners in Dong Nai province used the banned substance salbutamol (Beta- agonist) to produce lean meat. The current selling price is VND 43,500 (US$1.93) per kilo, down about VND 1,500 ($0.06) to VND 2,000 ($0.08) per kilo as compared to earlier months. However, purchases by Chinese traders are keeping the prices in the pork market relatively stable.

 

In the northern region, Chinese buyers have been actively buying Vietnamese pigs since a couple of months ago to stock up for mid-autumn festival. This has driven the prices in the northern region to be higher than in the southern region. Some recent pork prices were for tenderloin at VND 95,000 ($4.22) per kilo; bacon at VND 85,000 ($3.78) per kilo and the price of pork meat at VND 80,000 ($3.55) per kilo.

 

According to the General Statistics Office, at the end of July, Vietnam had about 26.76 million pigs on farms (up 2.5% to 3% year on year). The hog market production hit 2.05 million tonnes of pork in the first six months of this year, an increase of 3.9% as compared to the same period in 2014.

 

As the EU-Vietnam Free Trade Agreement (EVFTA) has been approved, imports have surged. This FTA has allowed 106 eligible firms to import various kinds of meat. Also, about 100 EU exporters have been given certificates to export meat to Vietnam. These imports are putting pressure on the growth of local producers.

 

 

Market forecast   

 

The Ministry of Agriculture forecasts a 2.4% increase in pork output this year to 3.37 million tonnes. However, according to the Department of Animal Husbandry, pork imports during the first half of the year rose 47% year on year to 2,432 tonnes. Thus, the variance may be bigger.
 
 
All rights reserved. No part of the report may be reproduced without permission from eFeedLink.