Pig Farmers Gain Profits After Difficult Period

(News Portal – Dong Nai) - After a prolonged period of low prices, since the end of May, the price of live pigs has continuously risen, at times reaching 70,000 VND/kg, the highest in several years.

Pig farm in Xuan Tho Commune, Xuan Loc District 

At the current price, pig farmers are enjoying good profits for reinvestment. However, industry experts warn that farmers should carefully consider restocking and expanding their herds at this time due to high piglet prices and other costs, along with significant disease risks.

Price Increase Due to Reduced Supply

According to pig farmers in the province, since the Covid-19 pandemic, live pig prices have generally been low, sometimes even below production costs. During this prolonged period, pig farmers faced numerous challenges.

Data from the Provincial Statistics Department indicates that as of the end of May 2024, the total pig population in the province was just over 2 million, a 4.28% decrease compared to the same period last year. The decline in pig numbers is attributed to prolonged low live pig prices, causing many farming establishments to either suspend operations or abandon the business due to losses.

Compared to the previous week, the current price of live pigs sold at farms has decreased by 2,000-3,000 VND/kg, fluctuating between 66,000-68,000 VND/kg. However, at this price, farmers still earn a profit of over a million VND per pig sold. The high live pig prices present an opportunity for farmers to recover profits from the previous difficult period.

A pig farmer in Xuan Tho Commune, Xuan Loc District, reported that the farm recently sold a batch of over 300 pigs at 68,000 VND/kg. With this price, after deducting all costs, the farmer earns a profit of over 1 million VND per pig. Encouragingly, live pig prices have been rising since May, allowing the farm to sell over 400 pigs at good prices in the past month.

Mr. Nguyen Kim Doan, Vice Chairman of the Provincial Livestock Association, noted that this price increase is quite unusual compared to market trends. In the summer, live pig prices typically remain stable and do not fluctuate much compared to other times of the year. However, this year, live pig prices have continued to climb even during the low consumption season. The primary reason for the high prices is a significant reduction in supply because, during the previous period, live pigs were sold at low prices, sometimes below production costs. Moreover, high feed prices and significant disease risks have led farmers to reduce their investments, causing a sharp decrease in the current supply of pork compared to previous years. Mr. Doan added: “The high live pig prices are mainly due to the significant reduction in supply. Mainly, small-scale farmers have reduced their herds or suspended operations due to difficulties. As a result, most small-scale farmers are not benefiting from the current high prices."

Avoid Haphazardly Increase Herd Sizes

Following the rise in live pig prices, prices for gilts and piglets have also increased. Currently, gilts are sold at over 10 million VND per pig, an increase of 2-3 million VND per pig compared to low periods. Piglet prices have also risen to 2-2.2 million VND per piglet, nearly 1 million VND higher than before.

This presents an opportunity for large corporations and enterprises in the livestock industry to boost their supply of gilts and piglets, as well as increase commercial pig herds. A representative from Greenfeed Vietnam Corporation (Long An Province) stated that the company is partnering with many pig farms in Dong Nai Province. In 2024, the company aims to achieve a 30% growth in total herd size compared to last year. At this time, besides supplying pork to the market, the company is also ramping up the supply of gilts and piglets to meet farmers' restocking needs.

However, the Dong Nai Livestock Association warns that while farmers are achieving good profits from current live pig prices, the consumption market is facing challenges. High prices slow down market consumption. The current reduced supply is temporary and will soon stabilize. At this time, farmers should carefully consider restocking and increasing their herds to avoid dual risks from diseases and fluctuating sale prices, which may not always remain high.

Many pig farmers in the province also share the view that careful consideration is needed for reinvestment and herd expansion during this period. Despite the high live pig prices, farming costs, from piglets to feed and other expenses, remain high. Particularly, restocking at this time means pigs will be ready for market in over three months, during which prices may not stay as favorable as they are now.