December 24, 2024

 

Pork prices surge across Vietnam as country's Lunar New Year approaches

As Vietnam prepares for the Lunar New Year (Tet), pork prices have risen sharply nationwide with leading livestock companies adjusting prices upward, despite reporting significant profits earlier in the year.

 

Vietnam's Ministry of Agriculture and Rural Development (MARD) reported that country's swine herd grew by 3.5% year-on-year as of November 2024. This increase was supported by consistently high live swine prices. At the same time, the cost of feed has steadily declined since March 2023, reducing production expenses for pork producers.

 

Large-scale swine farms currently face average production costs of VND 51,500 (US$2.02) per kg of live swine. With current selling prices of VND 64,200 (US$2.52) per kg, farmers and companies are earning approximately VND 1.27 million (US$49.90) in profit per 100 kg swine.

 

Several livestock companies have reported robust earnings in 2024.

 

BAF Vietnam Agriculture Joint Stock Company posted Q3 revenue of VND 1.31 trillion (US$51.4 million), a 7% year-on-year increase, and after-tax profits of VND 60 billion (US$2.3 million), up 54%. For the first nine months of 2024, BAF's profits totalled VND 214 billion (US$8.4 million), more than four times higher than the same period in 2023.

 

Dabaco Group recorded net revenue of VND 9.96 trillion (US$391 million) by September 2024, a 17% increase year-on-year. Its after-tax profits surged to VND 530 billion (US$20.8 million), a 28-fold increase compared to the same period in 2023.

 

CP Vietnam, a subsidiary of Thailand's Charoen Pokphand Foods, generated nearly VND 68 trillion (US$2.6 billion) in revenue during the first nine months of 2024, a 5% year-on-year rise. Livestock and poultry sales accounted for VND 59 trillion (US$2.3 billion), marking an 8% increase.

 

Despite these significant earnings, major producers have raised pork prices as Tet approaches.

 

CP Vietnam increased live swine prices to VND 67,000 – VND 68,000 (US$2.63 – US$2.670) per kg, up from VND 62,000 – VND 62,500 (US$2.44 – US$2.46) per kg earlier. Dabaco adjusted its prices to VND 65,000 – VND 66,000 (US$2.55 – US$2.59) per kg for swine weighing 120-125 kg and VND 64,000 (US$2.51) per kg for 110-kg swine.

 

Other producers predict that live swine prices may reach VND 71,000 (US$2.79) per kg during the peak demand period for Tet. Nationwide, current prices range between VND 64,000 (US$2.51) and VND 68,000 (US$2.67) per kg, with the highest prices recorded in northern provinces and parts of central Vietnam.

 

Nguyen Cong Bac, director of Loc Phat Livestock Company in Son La, estimates that with the current high prices, farmers and companies earn profits ranging from VND 1.5 million (US$58.94) to VND 1.9 million (US$74.66) per swine weighing 100-120 kg.

 

-      Vietnam Net Global