African swine fever in Vietnam: 4 million pigs have been destroyed.

category:Finance
 African swine fever in Vietnam: 4 million pigs have been destroyed.


However, the pig industry is also at risk of disease, especially swine fever in Africa. According to the statistics of Vietnam Veterinary Bureau, African swine fever has occurred in 7000 townships in 62 provinces and municipalities in Vietnam so far. The total number of live pigs destroyed is 4 million, accounting for more than 10% of the total number of pigs in the country.

Previously, Vietnamese Prime Minister Nguyen Chunfu urged departments, agencies and local governments to take effective measures to combat African swine fever, Xinhua reported. The Vietnamese government issued a number of documents demanding rapid detection and killing of sick pigs, and severely harnying the profit from the policy of killing pigs, and controlling pig transportation and slaughtering according to the regulations. However, there are still many deficiencies in the work of epidemic prevention, which contributes to the spread of the epidemic and causes public discontent.

Ruan Chunqiang, Minister of Agriculture and Rural Development of Vietnam, also said that the outbreak of swine fever in Africa was the most dangerous, complex and costly epidemic that Vietnams livestock industry encountered. In March this year, the Food and Agriculture Organization of the United Nations recommended that Vietnam declare a national emergency due to the outbreak of swine fever in Africa.

According to the latest statistics from the World Animal Health Organization (OIE), in July 4th, 1 new pigs were born in Vietnam. So far, Vietnam has had 2814 hog pestilence since 2019.

Pig-raising countries in South-East Asia, such as Myanmar and Laos, with weak surveillance systems, have also been spread and ravaged by the epidemic. According to the latest statistics of the aforementioned organizations, as of August 16th, there were 17 pig plague cases in Laos since 2019, and 2 cases of swine plague occurred in Burma.

At present, African swine fever has been found in China, Vietnam, Cambodia, Mongolia, Myanmar and Laos.

Li Zhe, head of marketing in Southeast Asia of Shanghai Botai Industrial Group, told First Financial and Economic Journalist that African swine fever is now in the stage of a full-scale national outbreak since it was discovered in northern Vietnam in February this year. According to market statistics, the production capacity of pigs in this country is seriously affected. After the outbreak of the epidemic, the price of live pigs fell to 21,000 yuans per kilogram (6.42 yuan), while the cost of raising pigs was 33,000 yuans (10.09 yuan). For farmers, the loss is nearly 40%. At present, with the outbreak of swine fever in Africa, there are fewer and fewer live pigs on the market, resulting in the price of live pigs rising to 49,000 yuans per kilogram (14.98 yuan).

Shanghai Litai Industrial Group Co., Ltd. is a company with five business sectors, including feed, food, marine life, recycling economy and pets.

Judging from the breeding industry chain, Li Zhe said that because of the decline in pig production capacity, pig feed production is expected to decrease by 50% in the second half of the year, resulting in the closure of many small and medium-sized feed mills, or the transformation of chicken production. Large feed groups will also choose to close 1-2 factories to reduce costs. As the feed industry has shifted to poultry and aquatic products, it may lead to increased competition within the industry.

However, he also mentioned that the increase in pork prices has a certain impact on the people, but the public also has diet habits for poultry and fish, so the impact is not very big. At present, the prices of chicken, duck and fish are relatively stable. At the same time, the Vietnamese government has purchased a large number of pork from the United States and Europe as one of the measures to stabilize the market.

Li Zhe believes that this is the first large-scale outbreak of African swine fever in Vietnam, and in view of the current characteristics of African swine fever, it is easier to spread and survive in a humid and mild climate. Without the advent of a vaccine against African swine fever, it will be difficult to control the epidemic in a short period of time. How to develop the industry behind is full of uncertainty.

Ayang, head of the farm of Zhengda in Fuping Society, Longcheng County, Tongnai Province, told First Financial and Economic Journalist that the management measures of the pig farm are now much stricter, such as killing vehicles entering the pig farm and changing clothes and disinfecting personnel. The process is very complicated. Although there was no problem in the farm, the severe situation of African swine plague led to an increase in control measures, which also increased the cost of farming, and lengthened the sales time.

According to Lin Guofa, director of research on Breck Agricultural Products Collection and Purchasing Network, Vietnam has developed poultry farming and reduced pork, which can be supplemented by poultry. In addition, neighbouring Thailand is also an important global exporter of chicken, which can be imported.

So far, China has not yet signed an agreement on pig, wild boar and its products with Vietnam. Since Vietnams official announcement to the world organization for animal health, there has been a recent outbreak of African swine plague in the country. In March 12th, the website of the General Administration of Customs issued a notice on 2019 No. forty-second (about preventing the introduction of African swine fever to China). It prohibited direct or indirect importation of pigs, wild boars and their products from Vietnam.

Low breeding cost attracts overseas capital distribution in Vietnam

Like China, pork is the dominant meat consumption category in Vietnam, accounting for 3/4 of the total meat consumption in Vietnam, and most of the live pigs raised in the country are sold in the domestic market. Therefore, with the increasing demand for pork, beef, chicken and dairy products, the aquaculture industry has been the key industry in Vietnam.

Lin Guofa said that the rapid development of Vietnams domestic economy and the strong demand for meat are the main driving force for the rapid growth of pig production in Vietnam in recent years. In addition, Vietnams pig breeding cost is low. As the worlds largest demand country for pork, China relies on Chinas huge demand potential market, which is also the main driving force for Vietnams rapid pig development.

He said that due to the increase in pig production in Vietnam in recent years, especially the centralized construction of medium-sized and large-scale farms, although the production capacity of Vietnam has decreased by more than 20% compared with 2018, the overall production capacity still maintained a high level.

The low cost of breeding is an important driving force for Vietnam to attract a large amount of overseas capital to dig for gold.

Lin Guofa explained that in Vietnam, although the amount of soybean planted in Vietnam is very small, mainly in the international procurement of soybean meal, in addition to the superior location in Southeast Asia, palm meal can be imported at a low price, and its domestic production of fish meal has a large number. In addition, although Vietnams domestic maize production can not meet its domestic edible and feed use, but its low price of rice, adequate supply, can be used as high-quality feed energy raw materials. Low feed costs, coupled with lower labor and land costs, have attracted a large number of pig-raising enterprises to come to this layout.

All this, he said, has made Vietnams pig industry start very high, and the cost of pig breeding in Vietnam is at least 30% lower than that in China.

Since the end of last century, overseas capital has entered the pig industry in Vietnam. PIC Pig Improvement International Group is one of the earliest pig improvement companies in the world. The company began investigating the Vietnamese market in 1993 and became the first internationally renowned pig breeding company to invest in Vietnam.

In addition, in the pig industry chain, Vietnam also has a large number of foreign investment in the feed industry. For example, international companies such as Cargill of the United States, Zhengda of Thailand and New Hope of China all have factories in Vietnam.

In April this year, New Hope Group signed a cooperation agreement with the three provincial governments of Vietnam on pig-raising projects with a total investment of 1.147 billion yuan. After the completion of the project, Vietnam will provide up to 930,000 live pigs a year, and Vietnam has become the first country that hopes to start pig farming overseas.

Twenty years ago, in 1999, New Hope Group went abroad for the first time and set up its first feed company in Ho Chi Minh City, Vietnam. In 2018, Vietnam completed more than 700,000 tons of feed sales in two major areas, with a revenue of more than 2 billion yuan.

The entry of internationalized enterprises has brought about the upgrading of the industry and considerable profits to Vietnams pig industry, which was originally supported by small-scale pig farmers. The evaluation of the new round of Vietnams layout by Nguyen De Cheng, Director-General of Foreign Investment and Development Department of Pingfu Province, Vietnam, is evident.

Nguyen De Cheng said that New Hope Group has provided a very good guarantee for Vietnams animal husbandry, aquaculture, feed, management and food upgrading. It has made Vietnams animal husbandry and aquatic industry develop rapidly. It has gradually upgraded from the original individual household-by-household farming to a safe, reliable and traceable, moderate-scale centralized farming and breeding. Management has advanced to a new level, with qualitative changes in survival rate, weight and feed conversion rate. It also lays a solid foundation for the Vietnamese people to provide green and safe food. More importantly, it has brought considerable profits to farmers and farmers engaged in farming in Vietnam, enabling them to get rich from farming and benefit from growth. It is worth noting that the monopoly trend of foreign-funded enterprises in feed industry is also increasingly obvious. As early as 2015, according to the statistics of Vietnam Feed Association, foreign-funded enterprises accounted for 65% of the domestic feed market share, while Vietnamese local enterprises accounted for only 35%. Among foreign-funded enterprises, 19.4% are CP, 8.11% are Cargill, 8% are Proconco and 5% are Green Feed. Source: First Financial Responsibility Editor: Guo Chenqi_NBJ9931

Nguyen De Cheng said that New Hope Group has provided a very good guarantee for Vietnams animal husbandry, aquaculture, feed, management and food upgrading. It has made Vietnams animal husbandry and aquatic industry develop rapidly. It has gradually upgraded from the original individual household-by-household farming to a safe, reliable and traceable, moderate-scale centralized farming and breeding. Management has advanced to a new level, with qualitative changes in survival rate, weight and feed conversion rate. It also lays a solid foundation for the Vietnamese people to provide green and safe food. More importantly, it has brought considerable profits to farmers and farmers engaged in farming in Vietnam, enabling them to get rich from farming and benefit from growth.

It is worth noting that the monopoly trend of foreign-funded enterprises in feed industry is also increasingly obvious.

As early as 2015, according to the statistics of Vietnam Feed Association, foreign-funded enterprises accounted for 65% of the domestic feed market share, while Vietnamese local enterprises accounted for only 35%. Among foreign-funded enterprises, 19.4% are CP, 8.11% are Cargill, 8% are Proconco and 5% are Green Feed.