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Analyst Pin-board: Pork prices higher helped Dabaco improved its profitability

The main reason leading to the high price of pork is that the supply did not meet the demand. Specifically, it is estimated that Vietnamese consumes 920,000-950,000 tons of pork each quarter, while supply was only 811,000 tons in 1Q. In term of demand, Vietnamese have a habit of consuming pork almost every day (pork accounts for 65-70% of food basket and also Vietnamese pork consumption per capita ranked second in the world, after China), so this habit cannot be changed quickly. Currently, although the price of chicken, duck or seafood is relatively cheap, the demand for those has not climbed because consumers still prefer pork. Supply has declined significantly after the African swine fever spread across the country. Before the African swine fever appeared in Vietnam, the total number of pigs was estimated at around 31 million. Due to the disease, there are only 25 million pigs left, down 20% compared to before the epidemic. As a result, the country's current total meat production has dramatically dropped down.