Pork industry profits flow to 'big guys', small households increasingly disadvantaged

A worker checks and cares for piglets in a breeding facility.

In Vietnam, the world's fourth largest pork consumer, the livestock industry is witnessing clear differentiation.

While small-scale livestock farmers are gradually losing ground due to difficulties in coping with cost pressures and new regulations, a series of large-scale livestock enterprises are recording high profits, benefiting from increased demand and a closed production model.

Pork prices forecast to rise again

The price of live pigs in the first three months of 2025 remained high, averaging at 76,500 VND/kg, even exceeding 80,000 VND/kg at times.

According to the Department of Animal Husbandry and Veterinary Medicine ( Ministry of Agriculture and Environment ), the sharp increase in demand for pork during Tet, combined with the supply of piglets not yet fully recovered, has pushed up pork prices.

According to this agency, on average, each Vietnamese person will consume about 37 kg of pork in 2024, an increase of more than 3 kg compared to 2023, putting Vietnam in 4th place in the world in terms of pork consumption.

This upward trend is expected to continue.

According to forecasts from MB Securities, the price of live pigs in the 2025-2026 period will continue to remain at 65,000-70,000 VND/kg, an increase of about 10% compared to the average in 2024.

The main reason is that output from small-scale farms is gradually decreasing, while consumer demand remains high.

Big businesses report high profits

In the context of sharp increase in pork prices, many leading enterprises in the industry have announced positive business results in the first quarter of 2025.

BAF Vietnam Agricultural Joint Stock Company recorded net revenue of more than VND 1,120 billion (slightly down compared to the same period) but cost of goods sold decreased sharply (accounting for only 74% of net revenue compared to nearly 90% in the same period), helping gross profit reach nearly VND 290 billion (more than double the first quarter of 2024).

BAF's first-quarter net profit reached more than VND133.5 billion (up 13% over the same period in 2024). The reason for this result is that the pig price market during this period remained high, the company's pig output reached more than 160,000 heads (up about 60% over the same period) and the price of input materials for animal feed production was stable.

BAF was established in 2017 and currently operates a closed 3F livestock model (from farm to table).

Similarly, Dabaco Vietnam Group Joint Stock Company (Bac Ninh) reported a net profit of more than VND508 billion in the first three months of this year, nearly seven times higher than in the first quarter of 2024. According to Dabaco, the disease situation in livestock and poultry is under control, herd restoration activities are taking place vigorously, and the high price of live pigs are factors that help improve profits.

Also a business producing animal feed and raising livestock according to the 3F model, Dabaco currently has a herd of about 46,400 sows (including affiliated farms), with a piglet output of over one million pigs/year.

Another company in the livestock industry that has also recorded a strong recovery is Masan MEATLife Joint Stock Company. The company's net revenue in the first quarter of 2025 reached more than VND2,000 billion (up 20%), gross profit was more than VND571 billion (up nearly 43%). Masan MEATLife had a net profit of more than VND115.6 billion in the first three months of this year, while in the same period last year it lost more than VND47 billion.

Along with domestic enterprises, CP Foods - a giant from Thailand, is also recording positive business results in Vietnam, their strategic market in the coming years.

In 2024, Vietnam will be the largest market contributing to CP Foods' foreign revenue (accounting for about 21%), far surpassing China, the second-ranked market with a contribution rate of about 6%.

CP Foods expects total revenue to grow 5-8% this year, with expectations that profits will continue to improve thanks to income from foreign markets, such as Vietnam.

The group is also preparing for an initial public offering in Vietnam to raise capital for expanding operations in this key market./.

Small households are increasingly disadvantaged.

According to the Analysis Report of KB Securities Vietnam Company, small-scale farms are forecast to continue to shrink in size due to difficulties in meeting increasingly strict environmental standards.

This has led to a limited supply of pork and promoted the restructuring of the livestock industry, with the structure increasingly tilted towards large enterprises, which have advantages in scale and closed livestock farming models.

In addition, the new Animal Husbandry Law is expected to tighten regulations on livestock density in each locality, causing compliance costs to increase significantly, especially for small-scale livestock farmers.

According to forecasts, by 2027, the market share of pork from this group of households may decrease sharply, from 45% in 2024 to only 10-15%.

According to Tuoi Tre Newspaper

Source: https://tuoitre.vn/loi-nhuan-nganh-thit-heo-do-ve-ong-lon-ho-nho-le-ngay-cang-lep-ve-20250503223238957.htm

Source: https://baolongan.vn/loi-nhuan-nganh-thit-heo-do-ve-ong-lon-ho-nho-le-ngay-cang-lep-ve-a194597.html