Viet Nam Hog Market19 June 2014
VIET NAM - Ron Lane, Business Director for Asia Pacific, and Meggie Vo, Genesus Marketing Representative in Viet Nam, provide the latest update on the Vietnamese hog market.
- According to preliminary results of a survey conducted by the General Statistic’s Office (GSO) at the end of the 1st quarter, on farm inventory was calculated to be: buffalo-2.58 million head- equal to the same period as last year and cows reached 5.18 million head- up 0.7 per cent from the same period last year. On farm pig production (with more favorable hog prices and with less impact by diseases, especially PRRS, there was a total of 26.39 million pigs-a slight increase (0.3 per cent) as compared with the same period last year.
- Since TET (late January, 2014), market pig prices have steadily increased. In late March, the farm price for market pigs was about 51,000VND/kg ($2.41US/kg-$1.09US/lb.) -a rise of 2,000 to 3000VND/kg ($0.09 to 0.14US/kg-$0.04US to $0.06US/lb.). The market pig prices have been rising, partly due to the consumers’ fear of avian influenza information and thus the shift from poultry to pork. As well, an increase in the price of some commodities used for livestock feed have increased thus causing a rise in market pig prices. According to the Ministry of Agriculture and Rural Development (MARD), in the last week, prices of live pigs in the southern provinces has increased by 5,000 VND/kg ($0.24USD/kg-$0.11USD/lb.) as compared to the beginning of April 2014.The pork price in the market place has also inched up by about 5,000 to 10,000 VND/ kg ($0.24US/kg-$0.11US/lb. to $0.47US/kg-$0.21US/lb.). Hog prices are at the highest levels within the past 2 years. Currently, the market pig price in the Ho Chi Minh area is about 55,000 to 56,000VND ($2.59US/kg-$1.18US/lb. to $2.64US/kg-$1.20US/lb.) an increase of 4,000 to 5,000VND/kg ($0.19 to 0.24US/kg-$0.09US to $0.11US/lb.) from early May.
- Like the last report, the southern regional market pig prices are higher than the northern regional prices by 8,000 to 10,000 VND/kg ($0.38US/kg-$0.17US/lb.to $0.47US/kg-$0.21US/lb.). One of the main reasons is the price of pork has risen because there is less current supply coming from the farms; several farmers have quit or reduced inventory; many large scale farms have been affected by the reduction in the herd that takes place because of devastating diseases such as PED and PRRS-these losses have been noted since late 2013. In addition, sources of live pigs from the north being sent to the south have dramatically decreased because of the cost of transportation of these pigs has greatly increased.
- In recent discussion with producers in Dong Nai province, market pig prices were about 56,000 VND/kg ($2.64US/kg-1.20US/lb.) and cost of production was about 42,000 VND/kg ($1.98US/kg-$0.90US/lb.). Profit was 14,000 VND/kg ($0.66US/kg-$0.30US/lb.) or about $66.04US/market pig in the south part of Viet Nam. However, the market pig price has been lower in the Hanoi region at 47,000VND/kg ($2.22US/kg-$1.01US/lb.).
- The price of pork in the wholesale market has also increased by 8,000 to10,000 VND/kg ( $0.38US/kg-$0.17US/lb. to $0.47US/kg-$0.21US/lb.) depending on meat cuts. At the market such as Van Thanh, Ba Chieu, Pham Van Hai, bacon was up to 90,000 VND ($4.25US/kg-$1.93/lb.) and pork cutlets cost were 85 ,000 VND/kg ($4.01US/kg-$1.82US/lb.).
- As of 23 May 2014 there were two provinces that had FMD outbreaks: Yen Bai and Kon Tum. PEDv has been present in Viet Nam for many years now. Recent flare-ups in March and April, caused large losses. Even large-scale foreign-owned farms which maintain better bio-security had cases. The amount of PEDv has recently subsided.
- Commencing in April, the value added tax rate for businesses importing the raw materials for animal feed processing was reduced from 5 per cent to 0 per cent.
- During the month of May, Viet Nam imported 197 thousand tonnes of soybeans with a total value worth $ 116 million USD. During the first 5 months, Viet Nam imported 809 thousand tonnes of soybeans (value of $474 million USD)-an increase of 49 per cent in volume and 44.5 per cent in value compared to last year.
- During the month of May, the import of feed and feed materials accounted for $ 280 million USD and brought the total during the first 5 months to reach 1.2 billion USD, down 0.2 per cent as compared to the same time last year. The main markets to supply these commodities were from Argentina (28 per cent), USA (18.6 per cent) and China (9.85 per cent).
|Genesus Global Market Report|
Prices for the week of 9 June 2014
(Liveweight a lb)
|USA (Iowa-Minnesota)||118.07 USD/lb carcass||87.37¢|
|Canada (Ontario)||251.31 CAD/kg carcass||83.96¢|
|Mexico (DF)||29.75 MXN/kg liveweight||$1.03|
|Brazil (South Region)||3.35 BRL/kg liveweight||67.45¢|
|Russia||108 RUB/kg liveweight||$1.42|
|China||12.56 RMB/kg liveweight||91.49¢|
|Spain||1.435 EUR/kg liveweight||88.38¢|
|Viet Nam||56,000 VND/kg liveweight||$1.20|
|South Korea||5,906 KRW/kg liveweight||$2.62|
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