Concerned about losing competitive advantage
Talking with the writer, Mr. Kieu Dinh Thep, Deputy General Director of C.P. Livestock Joint Stock Company. Vietnam said if businesses also lower the price of live pigs to 60,000 VND / kg, C.P. will also lower the degree of society.
“Since investing in Vietnam, C.P.'s point of view is always committed to accompany the call of the Government, the Ministry of Agriculture and Rural Development.
During this period, in order to lower the price of live hogs to 60,000 VND / kg, we want fairness in the system of livestock businesses to join together, ”Mr. Steel said.
On May 14, the Prime Minister instructed to control pork prices well in the coming time, based on respect for market principles and regulations, the Prime Minister requested the implementation of solutions, focusing on ensuring ensure supply and control intermediaries, circulation in the market.
The ministries concerned have the solution to soon bring the price of live pigs to about 60,000 VND / kg to strive right in April and early May in association with ensuring a reasonable and harmonious benefit between producers and distributors. and consumers.
Mr. Steel expressed concern if other businesses still sell at high prices while C.P. lower prices, competitors will have the advantage of capital to expand the barn.
“Last time we lost a number of cooperative pig pens outside and now we have to raise rents outside the barn to increase the competitive advantage of input but if the output price is affected we are also very difficult.” Mr. Steel said.
Earlier, on the sidelines of the conference to promote pig breeding organized by the Ministry of Agriculture and Rural Development on May 6, Mr. Vu Anh Tuan, Deputy General Director of C.P. Livestock Joint Stock Company. Vietnam said that due to the impact of the African swine cholera epidemic, the company's raising cost has increased to about VND 50,000 / kg, especially for the cost of prevention.
Mr. Steel said that in order to contribute to lowering the price of live hogs, the Ministry of Agriculture and Rural Development needs to have a loosening mechanism to enable businesses to import pork from neighboring countries with cheaper prices such as Laos and Cambodia. Philippines…
According to the Ministry of Industry and Trade, there are currently about 20 large pig-breeding enterprises, accounting for 35% of the market share, the remaining 65% are small-scale animal husbandry households. In it, C.P. accounting for 19.1% market share of pork across the country, 15 times Dabaco, 6 times CJ.
In the previous call of the Government on the business need to bring the price of live pigs to 70,000 VND / kg, some traders said that they could not buy this price from C.P.
Mr. Tuan said: “Everyone wants to buy at that price but the supply of C.P. is not enough to serve all people”.
The shortage of supply has continuously pushed the price of live pigs to a high level, over 90,000 VND / kg, double with August 2019.
Reduce standard weight off home
Present every day of C.P. slaughtered about 15,000 – 17,000 pigs. According to Mr. Steel, as if C.P. In 120 kg pigs, the company currently exports pigs at 100 kg to ensure the amount sold per day.
“Even in the coming period we can export pigs at a weight of less than 100 kg. However, we are concerned that if they are lower, the people cooperating with CP will refuse because it affects their income.” Mr. Steel said.
From the end of August 2019, new large breeding facilities for breeding and increasing herds stale meat and small livestock facilities will not re-grow until the end of 2019, so it is expected that in the third and fourth quarter of 2020, the demand will be basically met. stale like, stale commodity.
