Pork prices increase sharply, many "big" livestock farmers make big profits, profits increase tenfold

Pork prices have increased sharply in recent times.

Mr. Nguyen Cong Bac - Director of Loc Phat BLLT Livestock Company ( Son La ) - said that recently, there were times when the price of live pigs soared to 70,000 VND/kg, helping the company earn a profit of about 1.8 million VND/pig when selling. On that occasion, he sold about 1,000 pigs.

In recent days, the price of live pigs has dropped to 63,000-65,000 VND/kg. At this price, the company's pig farms still achieve a profit of 18-20%.

According to Mr. Bac, since the beginning of the year, pig farming has been "easier" than in 2023. The first quarter of this year had a slight profit, but in the second quarter, the profit was higher due to the increase in pork prices.

“Pork supply is currently insufficient to meet demand. As soon as farms sell pigs, the dealers will catch them all,” Mr. Bac said, adding that the price of animal feed has also cooled down, so the company’s farms are raising at maximum capacity from 10,000-11,000 pigs and 1,500 sows.

According to the Ministry of Agriculture and Rural Development, in the second quarter of 2024, the country's pig herd is expected to increase again due to the strong shift of household farming to semi-industrial farming and linkages with businesses. However, the complicated developments of African swine fever in many localities have made the livestock farming situation unstable, especially in the household sector.

Pork prices tend to increase sharply, then cool down but remain at a high level. In July 2024, the price of live pigs nationwide fluctuated from 62,000 to 66,000 VND/kg. This price helps farmers and businesses earn quite high profits.

In fact, in the first 6 months of this year, most pig farming enterprises recorded good growth thanks to high and stable pork prices over a long period of time.

For example, in the first 6 months of 2024, Hoa Phat Livestock Development Joint Stock Company sold nearly 190,000 pigs for meat, 80,000 commercial breeding pigs and more than 1,000 reserve breeding pigs. Sales of all pig lines grew well. Thanks to that, Hoa Phat's livestock revenue increased by 34.4% over the same period last year.

BAF Vietnam Agricultural Joint Stock Company also reported that revenue from livestock activities in the first half of this year reached 1,330 billion VND, an increase of 2.6 times compared to the same period last year. In the first 6 months of the year, BAF recorded a profit after tax of nearly 154 billion VND, an increase of 12 times compared to the same period last year (nearly 12.8 billion).

According to BAF, this is thanks to the recovery of pig prices in the second quarter of this year after hitting rock bottom in the fourth quarter of last year. In addition, BAF's pig production in the second quarter reached more than 144,000 heads, bringing the total herd in the first half of 2024 to 252,000 heads, 1.8 times higher than the same period last year. The decrease in input prices also helps businesses increase farming efficiency.

At Dabaco Vietnam Group Joint Stock Company (Dabaco) - a "giant" in the livestock industry, the first 6 months of 2024 recorded a net revenue increase of nearly 11.3% over the same period, to VND 6,437 billion. Profit after tax increased from VND 6 billion in the same period to more than VND 218 billion, equivalent to an increase of more than 36 times.

Previously, at the 2024 annual general meeting of shareholders, Mr. Nguyen Nhu So - Chairman of the Board of Directors of Dabaco, was confident that the company's profits would increase sharply thanks to rising pork prices and herd productivity currently at its highest level in history.

According to him, the production cost is only at 48,000-51,000 VND/kg, the planned selling price is "cautiously" at 52,000 VND/kg, while the price of live pigs is recovering positively and may increase further. Currently, the supply is decreasing more than the demand and it will take at least 18 months to overcome the shortage.

Regarding pork supply, Mr. Tong Xuan Chinh - Deputy Director of the Department of Animal Husbandry (Ministry of Agriculture and Rural Development) - said that from now until the end of the year - including during Tet when pork demand increases by about 10-15%, we still ensure good supply from domestic pork production. However, it is necessary to prevent African swine fever and practice biosafety in livestock farming.

“We have recommended that 16 large pig farming enterprises nationwide expand their production scale to ensure supply,” he emphasized. As for pig farming households, when starting or increasing their herds, they must ensure safe, disease-free and quality pig breeds, and strictly ensure biosecurity to maintain the pig herd.

The Ministry of Agriculture and Rural Development forecasts that the supply of pigs will increase again in the coming time. However, due to the complicated epidemic situation, the price of live pigs may remain high and only decrease again in 2025.

TH (according to Vietnamnet)

Source: https://baohaiduong.vn/gia-thit-lon-tang-manh-nhieu-ong-lon-chan-nuoi-trung-dam-lai-gap-chuc-lan-390033.html