December 2, 2024

 

Looking into the development of the farrowing-finishing model in Vietnam's pig industry

 

Vietnam's Department of Livestock Production reported that in April 2024, the price of piglets weighing 6-9 kilogrammes ranged from US$52.7 to US$60.8 per pig, similar to prices in October 2023.

 

However, by June, prices surged to US$89.2 per pig. Industry sources said farmers had downsized their herds due to the impact of African swine fever and sluggish market demand since the end of 2023, resulting in a sharp decline in piglet and gilt supplies.

 

Now, major livestock enterprises are prioritising supplying piglets to contract farms or customers rather than selling them directly to the market as they did before.

 

The latest data from the Department of Livestock Production showed that in 2022, the breeding sow herd reached 3.03 million, an 8% increase from 2021. While the commercial pig sector contributes 37.2% of the total sow herd in Vietnam, it accounts for 47% of the total number of pigs sold in 2022 thanks to higher productivity.

 

In response to the substantial growth in breeding herds and piglet production by large corporations, alongside fluctuating piglet prices, many farms have chosen to produce their own piglets.

 

The practice of raising sows and producing piglets from birth to finishing stages (farrowing-finishing model) is gaining popularity among independent farms, especially after the outbreak of ASF. By breeding their own pigs, farms can reduce the risk of disease spread during transportation and maintain better control over the quality of their piglets. This approach also helps them narrow the price gap with larger integrated companies.

 

Deploying farrowing-finishing model

 

Deploying a farrowing-finishing model presents various cost considerations. Independent pig farms typically have a production cost ranging from US$2.1 to US$2.14/kg, with the most efficient ones achieving US$2.06/kg.

 

In contrast, production enterprises in breeding pig-feed-farm value chains, such as BaF Agriculture Company (BaF), have a lower cost of approximately US$1.8/kg (according to Truong Si Ba, BaF's chairman). Similarly, Dabaco's production cost is approximately US$1.94 to US$2.02/kg.

 

Developing a farrowing-finishing model poses challenges such as accessing breeding stock and acquiring the necessary knowledge for proper sow care. These issues are being addressed by breeding companies. In this context, many of the world's largest breeding companies, currently operating in Vietnam, are actively organising seminars to engage with independent breeders and bolstering their team of field support technicians to ensure smooth operations.

 

For instance, Hypor Breeding Company recently held its first seminar in the country, an indication of its commitment to expanding its years-long presence. During its seminar, the company revealed impressive sow productivity indicators, shared insights on conducting farm trials to test breeding stock indicators, and highlighted breeding stock requirements.

 

Cooperl, a pig breeder from France, also conducted workshops in Vietnam's northern and southern regions, with a focus on boar care. The workshop provided knowledge on boar care, semen preparation, preservation, and transportation to ensure the quality of boar semen. This knowledge may be commonplace for large corporations equipped with a team of technicians, but it is relatively new for farmers. More than 90% of independent farms use artificial insemination, as shared by farm operators at the workshop.

 

Several independent farms that started raising sows and developing their own breeds have reported reduced costs. This is mainly due to the improved breeds and lower mortality rates, which have outweighed the expenses of biosecurity. They noted that while producing their own breeds may not necessarily lead to higher profits, it is crucial for their survival and ability to compete with larger companies.

 

- Ha Thu, EFL AG-DATA