The difficult situation of the pig industry in Vietnam

Published 2022년 6월 20일

Tridge summary

A recent report by VNDirect highlights the significant increase in the price of key animal feed ingredients, including corn, wheat, and soybean, due to trade disruptions caused by the Russia-Ukraine conflict and India's temporary ban on wheat exports. Consequently, animal feed businesses in Vietnam have raised product prices, leading to a trade deficit and challenging conditions for livestock production. The high cost of feed, which accounts for half of live pork production costs, is exacerbated by the availability of low-priced imported frozen meat, negatively impacting domestic pork market prices and consumption. The Dong Nai Livestock Association is planning to gather more information from the Ha Nam wholesale market to address these challenges and develop solutions for the industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A recent report of VNDirect mentioned corn, soybean, and wheat as important ingredients in animal feed and accounted for 55%, 25% and 10% respectively. According to Trading Economics, the price of feed ingredients has increased. Corn price on June 17 was 7.8 USD/bushel, up 20% over the same period last year. The price of wheat was 10.3 USD/bushel, soybean was 17 USD/bushel, 56% and 22% higher respectively compared to the same period in 2021. The reason for the continuous increase in the price of raw materials for animal feed production is partly due to the disruption of trade due to the conflict between Russia and Ukraine. Besides, on May 13, India, the world's second largest wheat producer, announced a temporary ban on wheat exports to ensure domestic food supplies. Preliminary statistics of the General Department of Customs show that imports of animal feed and raw materials to Vietnam in May increased by 53.7% compared to April and also increased by 36% over the ...

Source: Vinanet