Prices climbing daily

Speaking to VietNamNet on February 24, Nguyen Kim Doan, Vice Chairman of the Dong Nai Livestock Association, said, “Traders are scrambling to buy pigs over 100 kg in Dong Nai at prices between $3.20 and $3.28 per kg.”

This is the highest price since May 2020, when live hogs peaked at $4 per kg.

According to Doan, in early 2020, African swine fever devastated farms, drastically reducing supply and causing a historic price surge.

Currently, supply remains tight due to ongoing disease outbreaks, including foot-and-mouth disease and unexpected cases of piglet diarrhea at the end of last year, leading to significant losses in piglet stocks.

As a result, live hog prices keep increasing. In Dong Nai, prices are rising by $0.04 to $0.08 per kg each day. Doan predicts that prices may climb even higher.

Earlier, many forecasts suggested that prices would not exceed $3.20 per kg, yet they have already surpassed this level in just a few days.

In southern provinces, prices on February 24 ranged between $2.96 and $3.08 per kg, while in Dong Nai, they have already exceeded $3.20. Meanwhile, in central and northern regions, prices fluctuate between $2.84 and $3 per kg.

At traditional markets in Hanoi, pork prices have also risen by $0.40 to $0.60 per kg, depending on the cut. Specifically, pork belly now costs between $5.80 and $6 per kg, ribs range from $5.60 to $7.60 per kg, while shoulder, shank, and ham sell for around $5.80 per kg. The most premium cuts, such as neck fillet, are priced between $7.60 and $10 per kg.

Ho Thi Van, a pork vendor at Dai Kim Market in Hoang Mai District, Hanoi, said that although consumer demand remains weak, pork prices have risen sharply since the Lunar New Year due to the increasing costs of live hogs.

Livestock companies see major profits

In the northern region, hog prices remain lower than in southern provinces, according to Nguyen Cong Bac, Director of Loc Phat BLLT Livestock Company in Son La.

However, even at $2.84 to $2.88 per kg, pig farmers are earning considerable profits. Livestock profitability depends on factors like feed costs, piglet prices, and mortality rates.

With a farm size of 10,000 pigs and 1,200 breeding sows, Bac’s company sells around 2,000 pigs per month. “Right now, we’re making an average profit of $48 to $64 per pig sold,” he revealed.

Despite the high profits, Bac noted that small-scale farms have very limited stock available for sale at this time.

According to Dabaco’s 2024 financial report, stabilized feed ingredient prices and effective disease control have led to increased livestock production, resulting in strong financial performance.

Dabaco reported a revenue of $570 million in 2024, up 22% from 2023. Its net profit reached $32 million - an astonishing 3,000% increase from the previous year, making it nearly 30 times higher.

For 2025, Dabaco plans to achieve a total revenue of $1.2 billion, with a pre-tax profit target of $47 million, marking a 29.3% increase. After-tax profit is projected to reach $43 million, up 30% from 2024.

Similarly, BaF Vietnam Agriculture JSC reported a net profit of $16.5 million in 2024 - almost eight times higher than in 2023.

With pork prices surging, BaF plans to supply 60,000 commercial pigs in the first quarter of 2025 and increase production to over 200,000 pigs in the second quarter as they expand their herd.

The company expects first-quarter revenue of around $46 to $50 million, increasing to $58 to $62 million in the second quarter. For the full year, BaF anticipates total revenue of $250 to $270 million.

BaF executives predict that live hog prices will rise to between $3 and $3.20 per kg before stabilizing.

Tam An