Low production cost, high profit for businesses

Since the beginning of the year, the price of live pigs has been increasing sharply and "hanging" at its peak. Currently, the price of live pigs in the North is traded at 76,000-78,000 VND/kg; in the Central region, it fluctuates between 75,000-82,000 VND/kg.

In the southern provinces, the price of live pigs has jumped to 80,000-83,000 VND/kg. This is also the region with the highest price of live pigs in our country.

According to the Ministry of Agriculture and Environment, the price of live pigs has tended to increase since the beginning of 2024. Specifically, in the early stages of 2024, the price of this item stabilized around 52,000-60,000 VND/kg, then gradually increased and reached 70,000 VND/kg in the middle and end of the year.

Since January, the price of live pigs has fluctuated strongly on a daily basis. Currently, some localities have increased to 83,000 VND/kg - the highest level since mid-2020.

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Pork prices have increased dramatically, helping livestock businesses make huge profits. Photo: Tam An

High pork export prices along with reduced prices of raw materials and finished feed products help farmers make profits, creating motivation for farmers to restore their herds.

The Department of Animal Husbandry and Veterinary Medicine (Ministry of Agriculture and Environment) previously calculated that for a farm with a scale of 200 pigs or more, the production cost of live pigs is nearly 51,500 VND/kg. If the price is calculated from 75,000-83,000 VND/kg, farmers selling pigs with a standard weight of 100kg will make a profit of 2.35-3.15 million VND/pig.

Recently, BaF Vietnam Agricultural Joint Stock Company (BAF) also revealed that the average production cost of 1kg of live pig of the enterprise is estimated at 45,000 VND/kg, while the price of live pig is maintained at around 70,000 VND/kg, the highest is up to 83,000 VND/kg. From there, BAF sets a profit target of 450 billion VND in 2025, an increase of 40% compared to 2024.

In 2024, thanks to the increase and high price of pork, BAF reported a profit after tax of more than 395 billion VND, nearly 8 times higher than in 2023.

This year, the price of live pigs is "hanging" at its peak, so BAF estimates that its revenue in the first and second quarters will reach about VND1,100-1,200 billion and VND1,400-1,500 billion, respectively. The whole year is expected to reach VND6,000-6,500 billion in revenue.

Similarly, the leader of Dabaco Group once revealed that the production cost is only 48,000-51,000 VND/kg of live pork. Therefore, Dabaco is confident that the company's profits will be high.

In its 2024 financial report, Dabaco recorded a profit after tax of VND 769 billion, an increase of nearly 3,000% over the same period, or about 30 times higher. This year, this "giant" plans to have a pre-tax profit of VND 1,108 billion, an increase of 29.3% compared to the estimated implementation in 2024 and an expected profit after tax of VND 1,007 billion, an increase of 30% over the same period.

Pork is expensive, some types have jumped to 280,000 VND/kg

While businesses are racing to report huge profits, consumers are having to tighten their belts because pork prices in the market have skyrocketed to sky-high levels.

At traditional markets in Hanoi, some pork products have had their prices adjusted up by 20,000-40,000 VND/kg depending on the type, even though this product is in a rather sluggish state.

Specifically, the price of pork belly ranges from 150,000-180,000 VND/kg; shoulder, ham, and rump meat ranges from 140,000-150,000 VND/kg; loin ribs and baby back ribs range from 200,000-220,000 VND/kg...

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Fresh pork is so expensive that many consumers are switching to cheap frozen food. Photo: Tam An

Meanwhile, some high-end pork brands list ground pork, pork leg, shoulder ribs, and pork belly at 150,000-195,000 VND/kg. Special pork belly and tenderloin ribs are priced at 250,000 VND/kg and 280,000 VND/kg, respectively.

Many consumers complain that the price of pork is too expensive, forcing them to consider cutting down on meat portions in their family meals, or switching to frozen pork or other cheaper foods that fit their "marketing budget" while their income tends to decrease.

In fact, in some supermarkets and stores, the price of frozen pork is super cheap compared to the same type of domestically produced products. For example, frozen pig trotters and ribs are priced at 49,000 VND/kg, frozen pig trotters are priced at 59,000 VND/kg... This price is even cheaper than the price of live pigs in our country.

Statistics show that in January, Vietnam imported 12,600 tons of fresh, chilled or frozen pork, worth about 33.75 million USD (about 861 billion VND), a sharp increase of 105% in volume and 149.1% in value compared to the same period last year.

Notably, after being transported from many countries such as Brazil, the US, Russia, Germany, Spain, the Netherlands... to Vietnam, the average import price of fresh chilled or frozen pork is only 2,672 USD/ton (about 68,000 VND/kg).

Experts and livestock businesses believe that pork prices may still increase and remain high in the next 1-2 months due to supply shortages. Accordingly, when supply is stable and more pork is imported, prices may cool down.

Pork shortage pushes prices to skyrocket, what does the Director of the Department of Animal Husbandry say? Faced with a major pork shortage that has pushed prices to their peak, the Director of the Department of Animal Husbandry said that due to high demand before and after Tet, people have stocked up their cupboards, leading to local shortages.