This morning (March 30), Deputy Prime Minister Trinh Dinh Dung chaired a meeting with big companies in the pig farming industry to implement the Prime Minister’s guidelines to make the price of live pigs fall to VND 70,000 / kg.
C.P Company, a “giant” in pig farming, said that businesses responded to the call for reducing pork prices, but consumers did not benefit and still had to buy pork at high price.
At the meeting, Mr. Vu Anh Tuan – Deputy General Director of C.P Vietnam Livestock Joint Stock Company sent thanks to the Government, ministries, and the entire society for always responding to and accompanying animal husbandry enterprises in difficult times, especially the “rescue” movement, calling for the promotion of pork consumption during the price crisis from late 2017 – 2018 to the first half of 2019.
Therefore, showing the responsibility to consumers as well as the proposal of the Government, the Ministry of Agriculture and Rural Development, C.P Vietnam Company has recently adjusted the price of live pigs from VND 80-85,000 / kg by late 2019 – early 2020 to VND 73-75,000 / kg.
However, Mr. Tuan said that over the past time, although CP and some livestock enterprises have lowered the price of live pigs, in fact, consumers have not benefited from it since pork prices offered to consumers were still very high.
“With the selling price of live pigs at VND 75,000 / kg, after pigs are slaughtered and sold to consumers, the price of pork is only around VND 100,000 / kg. However, in fact, the average price of pork on the market sold to consumers is still too high, up to VND 140,000 / kg” Mr. Tuan said.
Mr. Tuan said that this showed that the intermediary stages currently accounted for a very high rate of profit and it was necessary to have a mechanism to manage and cut the intermediate stages. Because intermediaries did not only make the price of live pigs from the farm to consumers different, but also cause the State to lose corporate income tax…
In order to cut intermediary stages, C.P Company will promote the sale of pork directly to consumers in the coming time. Currently, C.P’s slaughter plant built in Chuong My (Hanoi) has basically been completed and expected to be put into operation by the end of 2020, with a capacity of over 4,000 pigs / day. This will improve the supply chain, reduce intermediaries, etc. In addition, C.P has also promoted links with processing slaughter plants to launch cool meat products to the market.
Regarding pork price reduction, the leader of C.P Joint Stock Company promised to adjust the price of live pigs to around VND 70,000 / kg from April 1, 2020 in accordance with the guidance of the Prime Minister and the proposal of the Ministry of Agriculture and Rural Development. However, Mr. Vu Anh Tuan said that the adjustment of pig prices should be implemented simultaneously by many large enterprises, since the market can not be decided and the general price of pigs can not be reduced by some businesses only.
At the meeting, after C.P Company pledged to make the price of pigs falls to VND 70,000 VND / kg. Representatives of large pig farming businesses such as CJ Vina Company; Dabaco; Japfa Comfeed; Emivest, etc. have also pledged to simultaneously adjust the price of live pigs to VND 70,000 / kg from April 1 in accordance with the guidelines of the Prime Minister.
Welcoming the companionship of C.P Joint Stock Company and other businesses in adjusting pig prices in recent time, the Minister of Agriculture and Rural Development Nguyen Xuan Cuong suggested that the Company should continue to enhance the re-herding, playing a leading role in adjusting pork prices to a reasonable level at the request of the Government, the Ministry of Agriculture and Rural Development as well as consumers. In addition, it is necessary to strive to increase the herd to reach the 25% target in 2020 in order to contribute to improving the domestic pork supply … At the same time, it is also necessary to promote the supply of breed sources to serve the re-herd for farms and farming facilities in the near future.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong said that, although the structure of meat consumption will be increasingly diverse, pork will still be a particularly important food item, accounting for 65-70% of meat consumption demand in the country.
In the face of soaring pig prices due to the impact of the African Swine Fever (ASF) from the end of 2019, the Government, the Prime Minister and the Ministry of Agriculture and Rural Development have taken measures to promote re-herd and herd increase since the African swine fever was gradually controlled. In addition, the Government, the Prime Minister and the Ministry of Agriculture and Rural Development have repeatedly asked big enterprises in the pig industry to find solutions to reduce the price of live pigs to a reasonable level. From the beginning of March 2020, the price of live pigs has also decreased, but it is still high.
The Minister emphasized that, bringing the price of pigs to a reasonable level does not only help restricting the national consumer price increase, harmonizing the interests of farmers and consumers, but more fundamentally, this is also to keep the pork market in a sustainable way.
“Our pig farming does not only meet domestic consumption needs, but also aims to reach out to the world market. Therefore, reducing the price of live pigs to a reasonable level is to maintain the domestic market in a sustainable manner, especially for large enterprise”, emphasized Minister Nguyen Xuan Cuong.
The Minister also believed that, up to now, the basic foundations of the pig farming industry have still ensured the re-herd and herd increase, especially grandparents and great-grandparents pigs, sows; the system of animal feed production enterprises; biosafety breeding models that are increasingly popularized and replicated.
In addition, the fact that African Swine Fever has been basically controlled with nearly 100% of communes having passed 30 days without the epidemic is a very favorable condition to accelerate the total pig herds, meeting the demand-supply balance of pork in the near future.
The Minister proposed and urged large pig raising businesses to follow the Prime Minister’s guidelines, simultaneously lowering the price of live pigs to VND 70,000 / kg from April 1, 2020.
Source: www.nong nghiep.vn