The price of our steam hog has increased sharply in the last 2 months. During the first period of June, the price of live hog is generally hovering close to the threshold of 60,000 VND/kg. This is considered the price range where small businesses and households have started to make profits. Market demand is likely to recover strongly in the long term. Besides good demand, the cooling of agricultural product prices from the beginning of the year will also support the industry, especially when our country’s supply depends on 75% of imports. According to preliminary data from the Customs Department, the whole country imported nearly 400 thousand tons of corn in May, up 36% over the previous month.
According to the Vietnam Commodity Exchange, among the four groups of raw materials, agricultural products recorded the strongest decline in recent months. Most of the prices of important feed ingredients such as corn, soybean meal, and noodles have all decreased by 15-30% compared to the beginning of this year. This is a good sign for the livestock industry, which depends on the supply of imported raw materials of our country, especially after 2 consecutive years of loss for businesses and households due to both input costs and pressure. output.
Vietnam is one of the two countries with the fastest growing corn imports in Southeast Asia and also the largest corn importer in the region since the 2018/19 crop year. Since 2012, Vietnam has moved from the 19th largest maize importer to the 5th position in the world.
On the domestic market, the volume from July, August, September is enough for 70% of demand, factories do not have much room to buy more. For goods delivered at the end of this year and early next year, at Cai Lan port, the asking price of South American corn has now decreased to about 6,300-6,500 VND/kg.
Besides high production costs, low pork prices and disease are also threats that have hindered the livestock industry’s growth in the first half of 2023. Recently, the hog market has been active again and forecast for a positive outlook for the output of livestock enterprises. In the last days of May, the price of live hog at one point exceeded 60,000 VND/kg, up 17% compared to the beginning of the year.
For two consecutive years, the cost of feed has increased, the price of pigs has decreased, leading to many farmers suffering losses and having to stop restocking activities, large enterprises have no plan to expand the size of their pigs. The supply is decreasing and the purchasing power is increasing again, helping the hog price to gradually recover.
