Pork Prices Climb Ahead of Tet in Vietnam

As Vietnam prepares for the Lunar New Year (Tet), there has been a notable increase in pork prices across the nation. Major livestock firms are hiking prices even as they report substantial profits from earlier in the year.

The Ministry of Agriculture and Rural Development (MARD) indicates a 3.5% annual growth in the national pig population as of November 2024, mainly driven by sustained high prices for live pigs. Simultaneously, the cost of feed has been on a steady decline since March 2023, alleviating production costs for pig farmers.

For large pig farming operations, the average production cost stands at 51,500 VND for each kilogram of live pigs. With current market prices set at 64,200 VND per kilogram, farmers and companies are netting approximately 1.27 million VND in profit for every pig weighing 100 kg.

In 2024, notable profits have been reported by major livestock companies:

• BAF Vietnam Agriculture Joint Stock Company: Reported a 2024 Q3 revenue of 1.31 trillion VND, marking a 7% year-over-year rise, with after-tax profits increasing by 54% to 60 billion VND. Total profits for the first nine months reached 214 billion VND—over four times more than the previous year.
• Dabaco Group: Achieved a net revenue of 9.96 trillion VND by the end of September 2024, a 17% increase compared to the last year. Their after-tax profits jumped to 530 billion VND, which is 28 times greater than in 2023.
• CP Vietnam: In its first nine months, operations in Vietnam yielded nearly 68 trillion VND, a 5% annual rise, with livestock and poultry accounting for 59 trillion VND, reflecting an 8% increase.

Despite these impressive earnings, significant price increases have been announced as Tet draws near:

• CP Vietnam raised live pig prices to between 67,000 and 68,000 VND/kg, up from a prior 62,000-62,500 VND/kg.
• Dabaco now lists prices at 65,000-66,000 VND/kg for pigs weighing 120-125 kg, and 64,000 VND/kg for those around 110 kg.

Other industry stakeholders anticipate live pig prices could climb to 71,000 VND/kg during the peak demand associated with Tet. Currently, prices fall between 64,000 and 68,000 VND/kg, with the highest figures seen in northern provinces and parts of central Vietnam.

Nguyen Cong Bac, Director of Loc Phat Livestock Company in Son La, estimates that farmers and companies are currently profiting between 1.5 million and 1.9 million VND per pig weighing between 100 and 120 kg.

The combination of this profitability and the surge in demand during Tet emphasizes the growth potential within Vietnam’s livestock sector, despite escalating costs for consumers.