Bottoming out pork prices bring glimmer of hope for pork companies in 2023
- As of Jun 14th 2023, the average selling price of Vietnam live hog reached VND59,000 per kg (+20.4% from the bottom). Given the recovery of pork consumption, the upward trend of prices is supported by the low supply. We suppose that pork prices might keep increasing as the supply could not increase consistently with demand in the short-term.
- Although global prices of livestock commodities is forecasted to go up in 2H2023 due to the risk of low production from El Nino and Russia-Ukraine tensions, we believe that local prices of livestock commodities will be traded at the level as same as in 2022 this year. The main reason is the downward trend of global prices between Aug-2022 and Jun-2023 which will be translated into local prices in 2023.
- With the price of over VND55,000 per kg, pork breeders have profits. Therefore, we believe that the upward trend of live hog prices brings a glimmer of hope to the pig farming companies. Particularly, it will enhance the profit margin of pork breeders in the next three quarters, then generating positive growth in the 2023 bottom-line.
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