Hog prices in the market are now at a very high
level.
Mr. Nguyen Kim Doan, Vice Chairman of Dong Nai
Livestock Association, said: “Before the Lunar New Year 2020, hog prices in Dong
Nai used to reach the peak of VND92,000/kg, but this price lasted for about 5
days only. After that the price dropped. This time, hog prices set a new peak
of VND96,000/kg and this high price has lasted for many days, which shows no
decreasing signs.”
Hog prices are increasing, which means that resuming
livestock activities at this time is expected to gain a great profit but most
livestock households and large-scale farms in Dong Nai have not been able to
resume their activities due to lack of loans, high prices of breeds and many
other risks.
A pig farm owner in Thong Nhat district said, due to
African swine fever his has stopped breeding for months. Currently, diseases
have been kept under control and his family wishes to continue their activities
but have no loans. In recent times, each breed pig of 7 kg cost more than VND3
million, 3 times higher than that before the time when African swine fever
occurred. Now, if famers would like to resume their activities, they have to buy
breeds and animal feed at nearly VND6 million/pig and as pigs are sold, farmers
will suffer losses if prices drop below VND60,000/kg.
To contribute to reducing hog prices on the market,
in addition to lowering hog prices, Livestock Joint Stock Company CP Vietnam has
organized slaughtering activities and directly sold pork to retailers to cut
down intermediaries. This unit is currently providing the market with 15,000 to
17,000 pigs every day and hog prices are between VND70,000/kg and VND97,000/kg.
now, CP Vietnam is slaughtering the number of pigs accounting for more than 20%
of the total number of pigs sold every day and supplying for more than 700 chain
stores of the company.
According to CP’s representative, the solution in
which CP directly slaughters and supplies pork directly to retailers will help
to reduce pork prices by VND10,000/kg to 15,000/kg compared to the market price.
Regarding the reason for high prices of pigs,
according to many farmers this is due to a limited supply. According to
calculations, the production cycle of sows is 10 months including nearly 4
months of pregnancy and 6 months of raising piglets and then the time when pigs
are sold out. Therefore, the meat production from April to May, 2020 is up to
the total number of breeding sows from June to July 2019 which is the peak time
of African swine fever. It is forecast that pork shortage will persist a few
months to come.
According to the provincial Department of
Agriculture and Rural Development, before the occurrence of African swine fever
in April 2019, Dong Nai’s total pigs were more than 2.5 million but in late 2019
there were only 1.5 million heads. In March 2020, Dong Nai announced no more
African swine fever in the province and since then hundreds of farms have
resumed their livestock activities with a number of nearly 220,000 pigs. At
present, the province’s total number of pigs is nearly 2.1 million heads, up by
about 14% compared to January, 2020. Resuming livestock activities of pigs in
Dong Nai is happening quacking and this is mainly in on farms and large-scale
livestock companies; meanwhile, most small and scattered farmers are still
afraid of resuming their livestock activities due to high prices of breed pigs
and other costs.
Mr. Huynh Thanh Vinh, Director of Dong Nai
Department of Agriculture and Rural Development, said: “With the current rate of
resuming livestock activities, it is expected that by the end of 2020 the total
number of pigs in Dong Nai will reach more than 2.5 million head. In the coming
months, Dong Nai’s pork supply for the market will increase and this is an
important factor to help reduce pork prices.”
Minister of Agriculture and Rural Development Nguyen
Xuan Cuong said, up to now the province’s livestock industry has regained over
80% of the total number of pigs before the outbreak of African swine fever.
However, the remaining 20% of the number of pigs will be a very difficult
task, but the industry must focus on promoting activities, ensure the country
has developed herds of pigs in the 3rd and 4th quarters of the year and the
country’s total pigs should be equal to those before the outbreak of diseases.
Also, minister Nguyen Xuan Cuong noted that at
present localities are encouraged to increase their pigs and resume activities
but the opinion of the Ministry of Agriculture and Rural Development is that
bio-security measures must be ensured first and then resuming livestock
activities will be allowed. In fact, African swine fever pathogens have still
existed in the environment, if biosecurity measures are not well taken, diseases
will immediately penetrate in farms and cause great damage. If resuming
activities are not performed quickly and effectively, a corner of the pig
industry’s market share will be gone. Certainly, it is impossible to keep pig
prices as high as they are at this time. However, there will have to be many
solutions to manage and bring pig prices to a stable level on the market.
Duy Minh (Van Minh)