From game nổ hũ uy tín beginning of 2023 to mid-April 2023, game nổ hũ uy tín price of live pigs recorded a slight decrease from 53,000 VND/kg and bottomed out around game nổ hũ uy tín price range below 50,000 VND/kg. After game nổ hũ uy tín bottoming phase, game nổ hũ uy tín price of live pigs increased by 18% to 59,000 VND/kg on May 21, 2023.
game nổ hũ uy tín price of live pigs increased by 18% to 59,000 VND/kg.
game nổ hũ uy tín explanation for game nổ hũ uy tín price increase is mainly due to game nổ hũ uy tín decline in supply as households haven’t restocked due to losses and game nổ hũ uy tín impact of African Swine Fever (ASF).
In game nổ hũ uy tín early months of game nổ hũ uy tín year, live pig prices declined for a long period, and game nổ hũ uy tín high cost of animal feed caused many difficulties for households. game nổ hũ uy tín production cost of households fell to around 53,000 – 55,000 VND/kg, and they incurred losses of up to 1 million VND per pig sold. Additionally, concerns about game nổ hũ uy tín return of ASF and reduced pork consumption in game nổ hũ uy tín context of high inflation in game nổ hũ uy tín first quarter have made farmers hesitant to restock.
game nổ hũ uy tín decrease in supply has created an opportunity for game nổ hũ uy tín price of live pigs to increase by 18% in game nổ hũ uy tín past month. This is seen as an opportunity for modern pig farming companies which applying game nổ hũ uy tín 3F (FEED-FARM-FOOD) model – low production costs to regain growth momentum.
game nổ hũ uy tín opportunity for modern 3F pig farming companies
BAF Viet Nam Joint Stock Company (listed on HOSE, stock code BAF) is considered as a representative entity in applying game nổ hũ uy tín modern 3F (FEED-FARM-FOOD) pig farming model.
In terms of FEED, game nổ hũ uy tín Company has put into operation 3 “Vegetarian” feed factories producing vegetable source livestock feed without any harmful substances to ensure nutrition for pigs. game nổ hũ uy tín 3 factories have a capacity of about 460,000 tons/year and have achieved game nổ hũ uy tín highest global certifications in Animal feed production quality management systems: GLOBAL GAP CFM 3.0 and FSSC 22000 Ver 5.1.
In terms of FARM, a series of farms have been put into operation, and construction has begun to increase game nổ hũ uy tín number of farms operating and deployed to 23 farms. BAF’s closed farm system applies modern European technology, an automatic feeding system through a central control system to minimize contact between humans and animals, limit diseases, significantly reduce labor costs, and achieve a water circulation rate of 95%.
In game nổ hũ uy tín FOOD sector, BAF Vietnam has successfully launched high-quality BAF Meat, a plant-based protein product made from vegetarian feed. They have continuously expanded their distribution network, with over 60 Siba Food stores and more than 300 Meat Shops spread across Vietnam
game nổ hũ uy tín substantial investment and support from game nổ hũ uy tín International Finance Corporation (IFC) have contributed to game nổ hũ uy tín rapid development of BAF. Currently, BAF has emerged as one of game nổ hũ uy tín top 5 largest pig farming enterprises in game nổ hũ uy tín country. game nổ hũ uy tín total number of pigs sold in 2022 exceeded 303,500, nearly doubling compared to game nổ hũ uy tín same period. At present, BAF’s total herd size is around 230,000 pigs, with a production cost of approximately 45,000 VND/kg.
BAF aims to continue expanding its modern farm system and plans to operate an additional 9 farms by game nổ hũ uy tín end of 2024. game nổ hũ uy tín projected total herd size will reach 90,000 sows and 2.2 million commercial pigs.
Dabaco Group (listed on HOSE, stock code DBC) is a longstanding diversified company in game nổ hũ uy tín livestock industry. Its main business areas include pig farming, poultry farming, and real estate development.
In game nổ hũ uy tín first quarter, DBC recorded net revenue of 2,314 billion VND, a decrease of 18% compared to game nổ hũ uy tín same period. Due to business operations below game nổ hũ uy tín cost price, DBC incurred a net loss of 321 billion VND, while it made a profit of 8.6 billion VND in game nổ hũ uy tín same period last year. This is also game nổ hũ uy tín largest quarterly loss for Dabaco to date.
As of mid-April 2023, DBC’s total pig herd reached 120,000, a 25% decrease compared to game nổ hũ uy tín same period (according to VCBS). According to Mr. Nguyen Nhu So, Chairman of Dabaco, game nổ hũ uy tín production cost for game nổ hũ uy tín pig farming segment of DBC is currently around 55,000 – 56,000 VND/kg.
game nổ hũ uy tín price of live pigs is expected to continue increasing due to limited supply and game nổ hũ uy tín impact of ASF
Currently, game nổ hũ uy tín market share of households livestock farming in Dong Nai province has decreased sharply to around 25%-30%, compared to game nổ hũ uy tín previous 70%. game nổ hũ uy tín number of households in Vietnam has reduced by nearly five times, with less than 2 million households in game nổ hũ uy tín past 10 years.
According to Mr. Truong Sy Ba, Chairman of BAF, under game nổ hũ uy tín recent outbreak of ASF, Vietnam’s total pig herd has decreased by 20-25%. Additionally, game nổ hũ uy tín low of live pig’s price has led to a massive selling-off by farmers and a limitation in restocking. Under game nổ hũ uy tín impact of game nổ hũ uy tín disease, it is forecasted that from game nổ hũ uy tín end of May to game nổ hũ uy tín end of game nổ hũ uy tín second quarter of game nổ hũ uy tín following year, game nổ hũ uy tín average price of live pigs will range from 60,000 to 65,000 VND/kg.
According to game nổ hũ uy tín forecast by OECD, Vietnam will rank second in Asia (after China) in pork consumption, with an annual growth rate of 3.1% in game nổ hũ uy tín 2022-2030 period. Fitch Solution also predicts that Vietnam’s pork consumption growth rate during game nổ hũ uy tín 2018-2026 period will increase by 25%, and by 2026, game nổ hũ uy tín average pork consumption in Vietnam will be 31kg per person.
game nổ hũ uy tín limited supply of pigs in game nổ hũ uy tín upcoming period, along with game nổ hũ uy tín recovery of total demand, will be game nổ hũ uy tín main catalyst for pushing up game nổ hũ uy tín price of live pigs. It promises to create favorable conditions for modern livestock enterprises to return to a growth trajectory.