Brian Jeffrey
The transformation in Vietnam’s livestock industry has pushed local farmers to adjust by engaging in contract farming or forming cooperatives, as traditional small-scale farming diminishes. This shift has placed pressure on farmers to adapt their methods.
The “Promoting Sustainable Pig Farming” conference held on August 14th shed light on the advancements and challenges in Vietnam’s livestock sector. Pham Kim Dang, Deputy Director of the Department of Livestock Production at the Ministry of Agriculture and Rural Development, highlighted the sector’s growth of 5.72% in 2023.
The pig farming sector is a crucial aspect of Vietnam’s livestock industry, contributing over 62% to the country’s total meat production. As of 2023, Vietnam ranks among the top five nations globally in pig population and sixth in pork production, indicating a significant shift towards a more structured and sizable industry.
Despite facing challenges like African swine fever and increasing feed prices, the livestock sector has shown resilience, with pig population and pork production on the rise. The structure of the industry has evolved, with a decline in small-scale household farming giving way to larger, more professional operations.
Foreign direct investment (FDI) enterprises now dominate the market share, holding 43% compared to domestic enterprises at 19%. Major players in the industry, both domestic and foreign, such as Dabaco, Masan, CP, Japfa Comfeed, and Cargill, are working on developing integrated supply chain systems to modernize the market.
Challenges such as disease outbreaks and escalating feed costs have prompted changes in the market. Fluctuations in live hog prices have forced small-scale farmers to consider alternatives like poultry farming or collaborating with larger corporations.
Deputy Minister of Agriculture and Rural Development, Phung Duc Tien, stressed the importance of maintaining consumer price index (CPI) equilibrium, especially with pork prices being a significant factor. Maintaining a balance between growth, profitability for farmers, and affordability for consumers is essential for the livestock industry’s sustainability.
