SWINE PRICE INCREASED – A SIGN OF A NEW CYCLE

30/06/2023

After a long time going through many difficulties, businesses “bear the losses”, households “hanging their barns“, Vietnam’s livestock industry has initially recorded prosperity. From the second quarter of this year, the sharp increase in swine prices is bringing joy back to farmers and businesses.

Swine industry around the world

A report by the US Department of Agriculture shows that global pig production continues to be in excess of consumption demand. The increase in pig production is mainly concentrated in American countries such as Brazil and the United States.

In Europe, there was a sharp increase in prices compared to the same period last year. The cause of the impact of the Russian-Ukrainian war affects the price of raw materials in the region.

China suffered great losses when African swine fever (ASF) took place seriously and spread to many provinces.

VIETNAM SWINE INDUSTRY IN THE FIRST 6 MONTHS OF 2023

In the first quarter of 2023, pig production across the country faced many difficulties. In general, the price of pork has not prospered and tended to decrease. The continuously high price of animal feed causes production costs to increase. Pig farmers face many difficulties and pressure when selling price is lower than cost.

In the wet weather in April, pig farming faces epidemics, with a high risk of outbreaks. Input material prices continue to increase.

Growth rate of the total number of pigs in Vietnam compared to the same period in 2022

Pork prices in May showed signs of improvement. In June, pork prices recorded the best increase, in the North of Vietnam with an increase of 21%, in the South with an increase of 18.18%, in the Central – Central Highlands with an increase of 17.3%. (Reference: Data from the Commodity Exchange of Vietnam (MXV)).

REDUCE PRESSURE ON RAW MATERIAL COSTS

The Organization for Economic Cooperation and Development (OECD) forecasts that Vietnam’s pork consumption will record an annual growth rate of about 3.1% in the period from 2022 to 2023. Consulting firm Fitch Solution also forecasts that Vietnam’s pork consumption will increase by 25% between 2018 and 2026. Inflation has cooled down since March, so consumer demand is likely to improve, which is the driving force for pork prices to increase in the second half of the year.

In addition to good demand, the cooling of agricultural product prices from the beginning of the year will also support the development of the industry. The supply of agricultural products is expected to improve markedly in the next crop year. With the El Nino weather pattern returning this year, the weather in South America is forecast to be quite favorable for crop growth. (Brazil, which accounts for 43.0% of total corn imports in Vietnam).

Swine price fluctuation from June 2022 to June 2023

The increased supply of agricultural products causes the price of raw materials and animal feed to decrease in the second half of this year, helping businesses no longer have to deal with the cost problem.

Mr. Pham Quang Anh – Vietnam Commodity Exchange said: “In the context of gradually controlling inflation, our country’s demand for pork consumption is likely to improve markedly. Combined with the price of feed ingredients cooled down compared to last year. Vietnam’s livestock industry is likely to record a significant recovery in the second half of this year.

Effective pig farming with Vietstock

Vietnam’s leading livestock exhibition – Vietstock officially kicked off with a series of 05 useful specialized roadshows, in which 02 roadshows will focus on pig farming in the North and the South of Vietnam.

At the roadshow, Vietstock and leading experts/engineers will bring in-depth analysis and innovative solutions to the swine industry. This is also a forum for businesses to introduce their most outstanding products/services and cooperate in business development.

Roadshow topic: Pig farm management & feeding strategy for optimal growth & profitability.