With the current selling price of live pigs at 64,200 VND/kg, if a farm raises 200 or more pigs, it will make a profit of about 12,700 VND/kg of live pigs. Pigs sold according to the standard weigh 100kg, meaning the farmer will earn a profit of 1.27 million VND per pig.
Pig farming is quite profitable
According to the report on the current status of pig farming and sustainable development solutions in the new situation of the Department of Livestock (Ministry of Agriculture and Rural Development), in 2023, the total amount of pig The number of pigs exported increased to 52.9 million, with pork output reaching over 4.8 million tons.
The total number of pigs in the country as of the end of June this year is estimated to reach nearly 25.55 million, an increase of about 2.9% over the same period last year. The output of live pigs reached nearly 2.54 million tons, an increase of 5.1% over the same period in 2023.
Regarding the price of live pigs, the report also shows that there have been strong fluctuations in recent years.
Specifically, in January 2021, the price of live pigs increased sharply and peaked at VND 80,000/kg, then dropped sharply to VND 42,900/kg. By November 2021, the price of this item returned to an upward trend and reached VND 54,000-57,000/kg in June 2022.
From July to September 2022, the price of pigs for slaughter fluctuated from 61,000-68,000 VND/kg, in some places reaching 73,000 VND/kg, but then gradually decreased.
In the first months of 2023, the price of live pigs dropped to 50,000-52,000 VND/kg, even hitting the bottom of 49,000 VND/kg in some places - this level caused many farmers to suffer losses because the price of animal feed increased and remained high.
It was not until May 2023 that the average price reached VND 55,300/kg and increased to VND 59,000/kg in June 2023.
According to the Department of Animal Husbandry, the fact that farmers had to sell live pigs at prices lower than production costs from January to May 2023 has strongly affected the growth rate of the country's pig herd.
In the second half of 2023, the price of live pigs will continue to fluctuate. The highest recorded price was 63,000 VND/kg in June, while the lowest price was 49,000 VND/kg in December.
In the first 6 months of this year, the price of live pigs recovered, from 52,500 VND/kg to 68,500 VND/kg. In some localities, there were even days when the price of live pigs reached over 70,000 VND/kg.
Notably, since March 2023, animal feed prices have begun to decrease, leading to a decrease in pig farming costs. Combined with the increase in live pig prices since February this year, farmers have made quite high profits after a long period of heavy losses.
The Department of Animal Husbandry calculates that on a farm with a scale of 200 animals pork or more, The cost of producing live pigs is nearly 51,500 VND/kg , including costs of: electricity, asset depreciation, management and labor costs, veterinary medicine and vaccines, feed, depreciation of pigs until they are sold, and breeding pigs.
The selling price of live pigs on August 7 was VND64,200/kg. After deducting costs, farmers earned about VND12,700/kg of live pigs. Pigs sold according to the standard weigh 100kg, meaning farmers will earn a profit of VND1.27 million/pig.
Share with PV.VietNamNet , 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 his 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%.
Mr. Nguyen Nhu So - Chairman of Dabaco Board of Directors - previously calculated that the cost of producing live pigs is only at 48,000-51,000 VND/kg. That is, with the current selling price, the business makes a fairly high profit.
According to the report for the first 6 months of 2024, Dabaco 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.
Imported pork is very cheap
In addition to publicly disclosing the cost of producing live pigs, the report of the Department of Animal Husbandry also said that the price of imported pork to our country is very cheap.
According to statistics from the General Department of Customs, in 2023, Vietnam imported 716,890 tons of meat and meat products, worth 1.43 billion USD. In the categories Imported meat, fresh chilled or frozen pork accounts for the majority.
In the first half of this year, our country spent 860.9 million USD to import meat of all kinds. Compared to the same period last year, imports of this item increased sharply by 33.6% in volume and 24.6% in value. Pork imports alone reached more than 128,700 tons, worth more than 203 million USD.
Russia, Brazil, Germany, Canada, the US, Spain, Poland... are the main sources of pork for Vietnam.
Notably, the price of live pigs in these countries is quite low. Specifically, in Russia, Brazil, Canada, the price of this item is only 34,100-34,200 VND/kg; in the US, the price is 38,400 VND/kg... Therefore, the average price of imported pork is only 52,000-55,000 VND/kg, cheaper than the price of domestically produced live pigs.
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