Pork prices hit all-time high in HCM City
Prices of pork hit a record high with some supermarkets in Ho Chi Minh City selling pork ribs at VND280,000 per kilogram and the price of pigs reaching VND90,000 per kilogram.
However, there was no shortage of pork in the market, so what has caused the price of pork to soar?
It was recorded at two wholesale markets, namely Binh Dien and Hoc Mon, that the amount of pork imported to markets slightly declined from 400 tons per day before the African swine fever epidemic to 300 tons per day now. Representatives of wholesale markets said that pork production decreased as high prices discouraged consumers to consume pork. A shortage of pork has not happened yet.
‘Earlier, I sold nearly 100 kilograms of pork per day, but now though there are only 50 kilograms of pork, I am unable to sell out’, said Ms. Luu Ngoc Anh, a butcher in Tan Dinh Market.
There are several reasons that make the price of pork to escalate but the main reason is that small traders seek everywhere to buy pigs from large traders (enterprises) to sell to China. If this situation continues to happen, it will cause domestic pig supply to become scarcer, pushing up the price.
Dr. Nguyen Quoc Dat, vice chairman of the Animal Husbandry Association of Vietnam, said that small traders buy pigs from pig-farming households while large traders from large farms via stable contracts. At the present, households no longer have pigs so small traders, by all means, buy back pigs from large traders to sell to China.
Mr. Nguyen Van Nuong, chairman of the Sa Dec Rice Powder Village Club in Dong Thap Province, said that the price of pigs has increased hot for several days. Traders currently seek to buy pigs at VND85,000-VND90,000 per kilogram. Despite of high prices, many households here no longer have pigs to sell.
Meanwhile, the Vietnam Directorate of Market Surveillance under the Ministry of Industry and Trade affirmed that there was no export of pigs from Vietnam to China and admitted a shortage of pork and a price level of VND90,000 per kilogram of pigs. Some distributors and supermarkets have given feedbacks about difficulties in accessing pork supply of producers, farms and husbandry enterprises, of which they preconized the CP Vietnam Husbandry Joint Stock Company which has investment capital of Thailand, though this producer still have a stock of pigs.
Amid the situation that some enterprises hoard pork, the Ministry of Industry and Trade asked the Ministry of Agriculture and Rural Development to drastically instruct producers to provide enough and in accordance with commitments for distribution enterprises and lower prices to lead and stabilize the price of pork. In addition, creating conditions for distribution enterprises, especially enterprises participating in the price stabilization program, to directly access pork supply with reasonable prices.
The Ministry of Industry and Trade will form interdisciplinary delegations to inspect and control the market, focusing on inspecting cornering, hoarding of goods and raising prices causing uncertainties in the market of large-scale husbandry facilities. If there are signs of violation, they will run investigation and slap administrative or crime sanctions, depending on the extent.
Gov’t demands report on skyrocketing pork prices
Deputy Prime Minister Vuong Dinh Hue has tasked the Ministry of Agriculture and Rural Development to report on pork prices which have skyrocketed over the past months.
Earlier in October, Hue had asked the ministry to design scenarios and measures to stabilize prices of pork, especially during national public holidays, including the Lunar New Year.
Pork prices began rising since June this year and surged by 60-80% in October compared with the previous month, according to the Ministry of Industry and Trade.
The meat price increased by VND 15,000-20,000 to VND 160,000-180,000 per kilogram this weak, the Ministry of Industry and Trade said.
The price surge was attributed to the African swine fever which entered Viet Nam in early 2019 and expanded across the country, leading to the massive culling of pigs in an effort to halt the spread of the swine fever.
The total meat output is estimated to reach 5.14 million tons in 2019, down by 4.1%, in which pork accounts for around 70%. Especially, pork demand may reach as many as 600,000 tons during the Lunar New Year festival.
The Ministry of Agriculture and Rural Development said pork output decreased by 10% this year, or 380,000 tons compared to 2018./. SGGP/VGP
With a population of nearly 100 million, Viet Nam is one of the world's top pork consumers and second in Asia, only after China.
Can the prices of pork destabilize the monetary policy formulated by the central bank in Vietnam?