Illustrative photo. Photo: NT

At the end of October 2022, there was information about "Opening the door to export pigs under quota to save its prices" when the price of live hog had dropped to VND50,000/kg. Some comments suggested that the Government should loosen the barriers to exporting and selling pigs across the border, reducing damage to farmers.

Therefore, the Government Office has just sent an official dispatch to the Ministry of Agriculture and Rural Development (MARD) as well as related ministries and agencies to convey the direction of Deputy Prime Minister Le Van Thanh on coordination in solving pork export issues.

Accordingly, the Deputy Prime Minister assigned MARD to chair and coordinate with the Ministry of Industry and Trade as well as relevant agencies to study the above information.

The Deputy Prime Minister also requested MARD to implement appropriate solutions to develop sustainable livestock production to meet food demand, especially during the New Year and Tet Holiday, ensuring the interests of farmers.

Regarding this issue, Nguyen Xuan Duong, Vice Chairman of the Vietnam Livestock Association said that it was reasonable to worry about ensuring meat output for consumption at the end of the year and Tet. However, the current live pig price was much lower than the cost, while the price of animal feed was very high.

Based on the current price of live pigs, farmers are not profitable. Therefore, it is necessary to find solutions to promote consumption in order to raise prices, help farmers make profits, and ensure stable production. "It's good to export pork, even if it's the most effective solution in the long run for the livestock industry," said Duong.

According to Nguyen Tri Cong, Chairman of Dong Nai Livestock Association: "There is a big difference in domestic pork prices compared to neighboring countries. Therefore, the State needs to have flexible operating policies, including considering exporting to China in the form of cross-border trade and exchange of goods.”

According to the Import and Export Department (Ministry of Industry and Trade), Vietnam's export of meat and meat products has not been commensurate with the annual production output. Currently, the amount of pork exported is too small compared to the total production output.

It is due to limit ations in the processing stage, the forecasting of supply and demand markets to regulate production, and disease prevention is not good, while the cost of pig production in our country is high compared to the world average. Therefore, it is difficult for Vietnam’s pork prices to compete with other countries.

The cost of pigs in Vietnam is high because our country depends on up to 70% of imported feed materials, while this cost accounts for 65-70% of the cost structure of pig raising.

Previously, in July 2022, in the face of high pork prices, Deputy Prime Minister Le Minh Khai directed ministries, branches, and localities to closely monitor developments, price situation, supply and demand of pork to implement measures to stabilize prices, prevent a shortage of pork, and prevent increasing in pork prices that affected people's lives, putting pressure on inflation and stabilize the macroeconomy.

Localities soon strictly control the situation of pork exports across the border. The northern provinces have tightly controlled the trail opening to limit  cross-border hog trade.

Similarly, other provinces such as Kon Tum and Binh Phuoc have also stepped up to prevent the export of pigs through Laos and Cambodia border gates.

According to data from the General Department of Customs, in the third quarter of 2022, Vietnam exported 3,990 tons of meat and meat products, worth US$21.18 million, up 4.9% in volume and 22.8% in value over the same period in 2021. The main types of meat and meat products for export were frozen frog thighs (mainly exported to the US, Belgium, and France); chilled or frozen fresh pork (frozen dairy pork and frozen whole pork were mainly exported to Hong Kong (China), Laos, and Thailand); meat and edible poultry by-products (mainly exported to Malaysia, Hong Kong (China), and Thailand); frozen fresh beef (exported mainly to Cambodia, India, and Thailand).