Dabaco suffered no major damage after storm Yagi, plans to increase herd, confident to complete yearly plan

Dabaco's pig herd is still relatively safe.

Typhoon Yagi has caused significant damage in the northern region, with more than 20,000 pigs and cows destroyed, according to the Ministry of Agriculture and Rural Development (MARD). However, Dabaco’s pig herd remains relatively safe.

However, potential risks from disease and livestock health in flooded areas will still be a concern for Dabaco.

In reality, the number of pig losses could be many times higher than the statistics due to difficulties in collecting data and many localities still having to deal with the consequences of storms and floods. Demand for pigs and chickens is expected to be high, as farmers need to rebuild their herds after the floods.

After the storm, the sudden shortage of pork supply has pushed the price of live pigs up again, especially in the North. Currently, the price of live pigs nationwide is around 70,000 VND/kg - the highest level since the beginning of the year.

Many securities firms believe that pig prices are unlikely to decrease in the coming months, and may even continue to increase further near Lunar New Year (second half of January 2025).

In September, the price of live pigs increased by more than 12% compared to the same period last year. The second half of the year is usually the peak season and consumer demand is expected to recover. Therefore, the price of pigs is unlikely to fall to the same level as last year, only about 52,000 - 56,000 VND/kg.

Typhoon Yagi caused significant damage in the northern region, with more than 20,000 pigs and cows destroyed. However, Dabaco's pig herd remained relatively safe.

According to a recent update by SSI Research Securities, Dabaco Group's board of directors said that in addition to the company's pig herd remaining stable, the successful internal testing of the African swine fever (ASF) vaccine at livestock units has helped Dabaco basically control the disease, contributing to promoting the reproductive productivity of sow herds, with some units reaching 33-35 pigs/sow/year - the highest level in the group's history of operations.

Notably, the Dabaco Group's board of directors also revealed that with the import of new pig breeds from France, the company's average production cost is now only about 50,000 VND/kg, even some farms in Thanh Hoa province recorded a cost of only 48,000 VND/kg, 10 - 12% lower than the level of 55,000 VND/kg in 2022.

Regarding the commercialization of African swine fever (ASF) vaccine, Dabaco said it is making progress in producing ASF vaccine, with a GMP vaccine factory completed and products in the final testing phase.

Dabaco said the vaccine has shown promising results and that international customers will be very interested. If successful, this could help Dabaco limit the disease in its pig herd and generate revenue from selling the vaccine to both domestic and international markets.

Dabaco is confident to complete the year plan...

In the current market context, Dabaco is planning to expand pig farming activities by increasing the herd to 60,000 sows and 1.5 million pigs in the near future, in order to proactively source pigs for business.

According to the Law on Animal Husbandry, from January 1, 2025, livestock farms in areas where livestock farming is not permitted in cities, towns, townships, and residential areas will be forced to relocate. This will force many livestock farms of farming households to close, causing the "contract farm" model (product consumption) to shrink. Therefore, Dabaco Group will be forced to invest heavily in concentrated farms.

Chairman of the Board of Directors of Dabaco Group Nguyen Nhu So said that the group is striving to have a concentrated farm with a scale of 58,000 - 60,000 sows by the end of this year or early 2025, and at the latest by 2026.

In the short term, Dabaco also plans to build two new farms in Thai Nguyen and Hoa Binh provinces, each with a capacity of 5,000 sows (the company currently has 50,000 sows). To meet the growth in livestock production, Dabaco also plans to open a new animal feed factory in the medium term. Dabaco's management is confident that it will complete this year's plan.

Previously, Dabaco said that pig farming and animal feed continued to be the main driving force, boosting the group's business results in the first two months of the third quarter of 2024.

Dabaco's revenue in August 2024 reached VND 2,024 billion, up 11% compared to July 2024, with the main growth driver coming from the animal feed and pig farming segments. In the first two months of the third quarter of 2024, Dabaco's revenue increased by 12% compared to the previous two months and increased by 33% compared to the same period last year.

Business results for the first 6 months of this year also achieved consolidated net revenue of 6,437 billion VND, up 11% over the same period last year and consolidated net profit 36 ​​times higher than the same period, reaching 218 billion VND.

Dabaco Group's Board of Directors said that the business results recorded positive growth mainly due to increased selling prices and consumption output of some products, typically the price of live pigs with a stable increase in the first 6 months of the year.

Based on current market conditions, SSI Research forecasts that Dabaco Group's revenue in the second half of this year will remain flat compared to the same period in 2023, reaching VND5,300 billion, but net profit could increase more than 12 times, reaching VND254 billion.

In 2024, Dabaco Group's revenue could reach VND11,700 billion, up 6% compared to 2023, and net profit could reach VND472 billion, up 18 times compared to 2023.

Dabaco Group's Board of Directors also shared that the group is urgently completing the final steps to synchronize the production plant and strive to commercialize the African Swine Fever (ASF) vaccine in the fourth quarter of 2024.

Mr. Nguyen Nhu So - Chairman of the Board of Directors of Dabaco Group said that the group has successfully tested the ASF vaccine at livestock units in the group and completed the final steps to commercialize the ASF vaccine, thereby basically controlling the disease and improving the reproductive productivity of sows.

Source: https://danviet.vn/dabaco-khong-bi-thiet-hai-lon-sau-bao-yagi-len-ke-hoach-tang-dan-tu-tin-se-hoan-thanh-ke-hoach-nam-20240927155351763.htm