Production costs have decreased, while pork prices have increased sharply and remained high, helping livestock businesses make big profits. As Tet approaches, livestock giants are racing to increase pork prices.
According to the Ministry of Agriculture and Rural Development, the total pig herd nationwide as of November this year increased by 3.5% compared to the same period last year. The high price of live pigs has encouraged large-scale enterprises and farms as well as small-scale households to restore and expand their herds.
Notably, this year, animal feed prices have been continuously adjusted downward, so the cost of producing live pigs has also decreased. Meanwhile, the price of live pigs has increased sharply and remained high (except at the beginning of the year), helping pig farmers, especially businesses, make huge profits.
The report on the current status of pig farming and sustainable development solutions in the new situation by the Department of Animal Husbandry (Ministry of Agriculture and Rural Development) stated that since March 2023, the price of animal feed has started to decrease, leading to a decrease in the cost of pig farming.
Combined with the increase in pork prices since February this year, livestock farming has brought in quite high profits.
The Department of Animal Husbandry calculates that for a farm with a scale of 200 pigs or more, the cost of producing live pigs is nearly 51,500 VND/kg. Just calculating the price of live pigs at 64,200 VND/kg, minus costs, each pig sold at the standard weight of 100kg will earn a profit of 1.27 million VND/pig.
Thanks to that, a series of livestock businesses reported huge profits in recent months, with some "big guys" even reporting profits 28 times higher than the same period last year.
For example, the third quarter financial report of BAF Vietnam Agricultural Joint Stock Company (BAF) showed that the company's revenue reached VND1,313 billion, up 7% compared to the same period last year. However, the cost of goods sold increased less, so gross profit improved to VND222 billion.
BAF's after-tax profit reached more than 60 billion VND, up 54% over the same period despite many expenses such as loan interest, sales and business management all "increasing".
Accumulated in the first 9 months of 2024, BAF's after-tax profit reached 214 billion VND, more than 4 times higher than the same period in 2023.
Similarly, by the end of September 2024, Dabaco Vietnam Group Joint Stock Company recorded net revenue of VND 9,962 billion, an increase of 17% over the same period in 2023.
Accordingly, the after-tax profit achieved by Dabaco in the first 9 months jumped to 530 billion VND, 28 times higher than the same period last year.
Dabaco leaders explained that the prices of raw materials for animal feed production in the country and imported are relatively stable, while the price of live pigs in the country has increased, so the business has made a lot of profit.
Although it did not announce its profits, in its third quarter financial report, Charoen Pokphand Foods Plc. - the Thai livestock "tycoon" (parent company of CP Vietnam) said that its business in Vietnam in the first 9 months of the year brought in nearly 68,000 billion VND, an increase of 5% over the same period last year.
Of which, the livestock and poultry industry accounted for the largest proportion with revenue reaching nearly 59,000 billion VND, an increase of 8% over the same period last year.
Vietdata's 2023 pig farming market report previously said that CP Vietnam would have a profit of nearly VND5,000 billion in 2022.
It is worth mentioning that after achieving huge profits, the "big guys" in the livestock industry continued to adjust the price of live pigs up before Tet At Ty.
Typically, CP Vietnam has continuously adjusted the price of live pigs for slaughter in recent days. This product of the enterprise has increased to 67,000-68,000 VND/kg. Previously, the listed price of live pigs in the Southern region of CP Vietnam was only 62,000-62,500 VND/kg.
Dabaco has also just raised the price of pigs to 65,000-66,000 VND/kg for pigs weighing 120-125kg/head; pigs weighing 110kg/head cost 64,000 VND/kg. An employee of this company said that the price of pigs increases every day so it has to be adjusted continuously.
Some livestock businesses also adjusted and predicted that the price of live pigs could increase to a new level of 71,000 VND/kg, when the market enters peak consumption near Tet At Ty.
Currently, the price of live pigs for slaughter in provinces and cities in our country has increased to 64,000-68,000 VND/kg, the peak price of 68,000 VND/kg appeared in most of the Northern region and some provinces in the Central region.
According to the calculation of Mr. Nguyen Cong Bac, Director of Loc Phat BLLT Livestock Company (Son La), with the current high price increase in the Northern region, if raising a pig weighing 100-120kg before selling, breeders and businesses can make a profit of 1.5-1.9 million VND.
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