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

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 jumped 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, from the beginning of the year until now, pig farming has been "easier" than in 2023. The first quarter of this year had a slight profit, and 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 have pigs for sale, the dealers will catch them all,” Mr. Bac said, adding that animal feed prices have also cooled down, so the company’s farms are raising at maximum capacity 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 from household farming to semi-industrial farming and linkages with businesses. However, African swine fever is still complicated in many localities, making the livestock situation unstable, especially in the household sector.

Pork prices tend to increase sharply, then cool down but remain high. In July 2024, the price of live pigs nationwide fluctuated from 62,000-66,000 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 pigs and more than 1,000 gilts. Sales of all pig lines grew well. As a result, Hoa Phat's revenue from livestock 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 VND1,330 billion, 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 VND154 billion, an increase of 12 times compared to the same period last year (nearly VND12.8 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.

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 well 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.