Pork producers see profits skyrocket as prices rise on shortage

Dabaco Group in the northern province of Bac Ninh reported profits of VND349 billion ($15 million) in the first quarter, up 17 times year-on-year.

Its revenues were up a more modest 41 percent to VND2.39 trillion ($102 million).

For the full year it eyes revenue growth of 84 percent to VND13.2 trillion ($566 million) and a net profit increase of 51 percent to VND460 billion ($19.7 million).

Dabaco expects its pig herd to be the largest of any producer’s in Vietnam by the end of the year and 15 percent larger than last year when pigs were culled in large numbers due to an African swine fever outbreak.

Ho Chi Minh City-based Vissan Jsc saw profit rise 19 percent to VND46 billion ($2 million) while revenues were up 20 percent to VND1.4 trillion ($60 million).

Southern pork producer Dong Nai Agricultural Livestock Product Jsc (Dolico) reported profits of VND39 billion ($1.7 million), exceeding that of full-year 2019 by 41 percent.

Mitraco Jsc of the central Ha Tinh Province reported profits of VND22 billion ($943,000), against a loss of VND7 billion ($300,000) in the same period last year.

Revenues were up 34 percent to VND93 billion ($4 million).

Pork prices last month hit a 20-year high of VND103,000 ($4.4) per kilogram due to a scarcity caused by the African swine fever epidemic that broke out in February last year.

Authorities have been increasing imports to contain prices, and even allowed for the first time imports of pigs on the hoof to cater to people’s preference for fresh meat over frozen meat.

Vietnam has had to cull more than 4,000 pigs infected with African swine fever in 20 localities in the first five months of this year after the incurable disease returned.