Livestock businesses to actively sustain domestic market

 Ministry of Agriculture and Rural Development presented the record of a sharp increase in import of pork and meat products, ringing the bell to domestic livestock enterprises about sustaining the domestic market.

Thu Dau Mot Market Management Board actively signed a consumption joint contract with CP Joint Stock Company to stabilize the market price. In photo: Pork on sale at a store in Thu Dau Mot market.

 Imports increase

According to data from Ministry of Agriculture and Rural Development, as of 15 March 2020, Vietnam imported 25,291 tons of pork and pork products, up 205% over the same period in 2019. In which, imports from Canada accounted for 29.35%, Germany 19.43%, Poland 11.83%, Brazil 9.98%, United States 5.53%... This number is a warning to domestic livestock businesses, including businesses in Binh Duong about sustaining the domestic market. When FTAs take effect, surely businesses need a long-term strategy. Recently, Deputy Minister of Agriculture and Rural Development Phung Duc Tien continued to warn if not pork price is not curbed at the level that is beneficial to both producers, distributors, consumers, surely the Government will open the market and allow more pork imports.

Due to this situation, Le Thanh Tam, Deputy Director of provincial Department of Agriculture and Rural Development, asked large local livestock enterprises must seriously implement the market price stability, reasonable prices. If price increases, the Government will heighten pork imports from USA, Australia, Canada, Laos, Cambodia. Businesses do not have business strategies, then could lose their markets and suffer huge losses. In addition, localities in the province need to stimulate production, environmental protection, good prevention of disease. Besides, in order to stabilize the market, businesses produce seedlings, commercial pigs need to lower prices. Besides, it is also necessary to reduce the price of animal feed.

Ho Van Binh, Deputy Director of Department of Industry and Trade, said the department also worked with large livestock farming businesses about market stabilization. At the meeting, most opinions of businesses agreed to stabilize the price and demand-supply on the market. Businesses need to realize that they are helping themselves to protect domestic market. Mr. Binh emphasized that it is time for businesses to develop a supply chain, protect the domestic market. Large animal husbandry businesses of pork need to play a leading role; then small businesses will follow. This strategy could guarantee sustainable development and long-term benefits. "The price is decided by the market, but the problem is how to harmonize the benefits of entities within the chain, including consumers, farmers, businesses, and especially to ensure long-term and sustainable development of the market", Mr. Binh stressed.

Price stabilization needs to be implemented

Kieu Minh Luc, Deputy General Director of CP Livestock JSC, said we must keep the pork price to be less than VND50,000 /kg. The company is always ready to cooperate to maintain the price stability. It is also the desire of this company, because stability is sustainable development.

Nguyen Thi Hong Huong, Head of Thu Dau Mot Market's Management Board, said that markets need to closely collaborate with suppliers to stabilize the market price and meat sources. Ms. Huong said the Management Board signed a supply contract with CP Livestock JSC to stabilize pork price and supply to merchants regardless of market variations.

Mr. Tam affirmed that Binh Duong had no shortage of pork supply. In addition to supplying to provincial market, now businesses also supply to markets in Ho Chi Minh City and other provinces. Accordingly, the number of pig herds in Binh Duong province is currently 736,688, in which small-scale livestock farming is 36,465 (accounting for 4.95% of total number) and concentrated farming is 700,223 (accounting for 95.05% of total number). Although total number of pig herds in the province now decreases by 5.79% compared to the same period in 2019, the number of pigs is only reduced in small-scale establishments (decreasing 59.97%). In concentrated livestock farms and livestock companies with foreign investment, the total herd of pigs increased by 1.35%.

Answering about the increasing pork price at some markets in the province, Mr. Tam affirmed that the price increase only happened in some small markets when the supply depends on middlemen. The Department asked Livestock, Veterinary and Fisheries Bureau to assist localities in the guidance, encouragement of re-population pursuant to biological safety assurance, epidemic safety regulations. This is an important foundation for animal husbandry businesses in Binh Duong to accelerate the construction of supply chains, sustainable development in the global trend.

Reported by Tieu My - Translated by Ngoc Huynh

• Businesses concerned about rising exchange rate pressure (24/04)
• Q1-2024, provincial socio-economic situation continues to have positive changes (24/04)
• Policy credit requires local entrusted capital source to balance (23/04)
• Creating favorable conditions for social housing buyers (23/04)
• Giant Group pours additional US$ 120 million into Binh Duong (23/04)
• Thuan An city in striving to fulfill type-1 urban criteria (22/04)
• Vietnamese furniture products introduced at Milan Design Week (21/04)
• Local real estate market strongly attracts foreign investors (20/04)