Intermediaries take unfair slice of pork market, hiking prices

06:00 | 29/04/2020 Trade

(VEN)- Pork customers are paying prices 40 percent higher than they should be due to gouging by intermediaries. Relevant authorities’ involvement is important to bring down pork prices.

intermediaries take unfair slice of pork market hiking prices

Reducing pork prices

Deputy Prime Minister Trinh Dinh Dung recently met in Hanoi with pork production enterprises to discuss ways of lowering the live weight pork price to VND70,000/kg according to the Prime Minister’s instructions.

Stabilizing pork prices is not only about reducing the cost of living, but also about harmonizing the mutual benefits between customers and producers, eventually leading to a sustainable pork market, according to Deputy Prime Minister Trinh Dinh Dung.

Vice General Director of C.P Vietnam Livestock Corporation Vu Anh Tuan said with a live weight price of VND75,000 (US$3.16) per kilogram, the retail price should be around VND100,000 (US$4.22) per kilogram at the highest.

As customers are paying prices 40 percent higher than they should be, intermediaries are gaining an unfair share of profit, Tuan said, hurting both customers and producers, as well as causing tax revenue losses.

At the meeting, representatives of major pig raising businesses, including C.P Vietnam, CJ Vina, Dabaco, Japfa Comfeed, and Emivest, pledged to reduce the live weight price to VND70,000/kg from April 1 in accordance with the Prime Minister’s instructions. They proposed that the government include pork on the list of price controlled goods to avoid constant price fluctuation.

Speculation control

Giving a speech at the meeting, Deputy Minister of Industry and Trade Do Thang Hai said the African swine fever is an objective cause of recent pork shortages. He asked the Ministry of Agriculture and Rural Development to provide more detailed information about pig herd repopulating communes and pork shortages in the coming months in order to find appropriate solutions.

The Ministry of Agriculture and Rural Development proposed that the Ministry of Industry and Trade efficiently control the pork supply chain to avoid speculation and price increases, especially those related to intermediaries. Managing prices in slaughterhouses is important to decrease the live weight price to VND70,000 per kilo.

Leading livestock enterprises do not manipulate pork prices. According to Deputy Minister of Industry and Trade Do Thang Hai, C.P Vietnam accounts for 16.5 percent of all pigs nationwide and controls a 19.71 percent share of the country’s live weight pork market, while the rates of Dabaco are only 1.1 and 1.34 percent. No enterprise has achieved a market share of more than 30 percent in violation of the competition law, Hai said.

Deputy Prime Minister Trinh Dinh Dung: The Ministry of Industry and Trade continues working with the Ministry of Agriculture and Rural Development to further import pork and monitor intermediaries in pork distribution to control illegal exports.

Nguyen Hanh