Pork for Lunar New Year 2024, farmers cry

Traders "laugh" because of profits, farmers "cry" because of losses

In 2023, the high price of animal feed caused the livestock industry to go through a turbulent year, farmers struggled with the problem of "input" and "output", farmers had almost no profit, even suffered losses.

According to the Ministry of Agriculture and Rural Development (MARD), the average price of complete mixed feed for pigs and poultry in 2023 is still 0.7-3.5% higher than in 2021, causing the cost of raising livestock to reach 52,000-55,000 VND/kg at times, while in general, the price of live pigs tends to decrease compared to the previous year, at times the price of live pigs fluctuates between 47,000-51,000 VND/kg.

A survey by Lao Dong reporters shows that, after a slight increase, the average price of live pigs nationwide is at 49,700 VND/kg. Specifically, the selling price of live pigs is from 48,000-52,000 VND/kg, of which, nationwide, only 2 localities sell at 52,000 VND/kg: Hung Yen, Hanoi and Tuyen Quang, while other provinces sell at 48,000-50,000 VND/kg (in the Southern region, only Ca Mau province sells live pigs at 51,000 VND/kg).

Farm owners said that the production cost of 1kg of live pigs ranges from 45,000 VND (FDI enterprises, or large farms with thousands of pigs) to 52,000 VND/kg (small farms), while for small-scale farmers, the cost of raising live pigs is at 55,000 VND/kg, or even higher.

Pork supply for Lunar New Year 2024 is abundant due to increased supply. Photo: Giang Nguyen

“At this price, businesses almost break even, while small farms are sure to lose money. In mid-2023, I raised 15 pigs, each pig sold at a loss of nearly 800,000 VND, so I stopped raising them,” said Mr. Duong Minh Thanh (Hamlet 6, Van Thanh, Yen Thanh, Nghe An).

Mr. Nguyen Hanh (a pig farmer in My Duc, Hanoi) also said that he has reduced his pig herd by 50% to cut losses due to the low price of live pigs, even though Tet is approaching.

Restructuring the livestock industry towards sustainability

According to the Ministry of Agriculture and Rural Development, the domestic livestock industry contributes 25.26% to the GDP of the agricultural sector. Currently, Vietnam is the country with the 5th largest pig farming industry in the world in terms of quantity, and the 6th in terms of meat output. In 2024, the livestock industry aims to increase production value by about 4-5% compared to 2023.

Mr. Duong Tat Thang - Director of the Department of Animal Husbandry (Ministry of Agriculture and Rural Development) - emphasized: To develop sustainable animal husbandry, in the direction of green growth, there are 3 main pillars: breed, feed, and technological environment. With these 3 main pillars, the Department of Animal Husbandry is currently building a development project.

According to Mr. Nguyen Xuan Duong - Chairman of the Vietnam Livestock Association, to develop the livestock industry comprehensively, effectively, sustainably and enhance competitiveness, the Government has approved the Livestock Development Strategy for the period 2021-2030, with a vision to 2045. This strategy aims to promote the potential and advantages of ecological regions to develop livestock in the direction of industrialization and modernization, while promoting organic livestock and traditional livestock in the direction of producing high-quality and safe goods; linking livestock development with the development of value chains, increasing added value, ensuring biosafety, disease safety, environmental friendliness and food safety, and humane treatment of livestock, etc.

From the consumer perspective, Ms. Ha Thi Thuy (Cho Song hamlet, Truc Ninh, Nam Dinh) suggested that to restructure the livestock industry in a sustainable direction, the State needs to balance the price difference between live pigs and pork on the market. Farmers and consumers should not suffer losses, while in the intermediate segment, butchers make large profits without sharing risks with farmers.

According to the Ministry of Agriculture and Rural Development, the output of fresh meat of all kinds of livestock for sale in 2023 is estimated at 788.1 thousand tons, an increase of 6.4% over the previous year. It is forecasted that during the Lunar New Year 2024, the meat supply will be very abundant.

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