vn porc 12av2

"The first half saw prices and shipments of pork rise strongly with export markets expanded," said Le Ba Lich, deputy head of the Agriculture and Forestry Promotion Bureau.

The 11,000 tons of pork and live pigs exported in the first seven months of this year nearly equaled 12,200 tons sent abroad last year, according to Lich. Of which, 4,500 tons mainly went to Hong Kong, Singapore and Malaysia with prices of between US$1,100 and US$1,900 per ton.

Russia is one of Vietnam's traditional markets and imported a large volume of Vietnamese pork in the period. Vietnam Husbandry Corp. and Vietnam Meat Products Processing Corp. (Vissan) exported a total of 6,000 tons to Russia in the first half and the year's figure to this market is likely to reach 12,000 tons.

The Ministry of Agriculture and Rural Development has also set a target of earning US$50 million annually from exporting 60,000-70,000 tons of pork between now and 2005, and US$100-150 million after that.

Hong Kong, China, Russia and Japan will still be main markets of local pork exporters. In addition, more markets will be added to the list, according to a meeting held early this month by the ministry.

However, not all is rosy and Vietnamese pork exporters still have a tough path to go-"Vietnam's pork prices were still higher than what the Chinese and Americans offered. Export pork is quoted at US$750 per ton in the Red River Delta areas and US$900-1,000 in the south, while U.S. companies sell leaner export products for US$600-700 per ton and the Chinese for US$650," said Nguyen Van Khac, general director of Vietnam Husbandry Corp.

Khac attributed the high prices to the fact that Vietnamese pigs were of poor breeds and raised in small farms. Moreover, animal feed in Vietnam tends to be more expensive year after year and accounts for up to 70% of the production costs.

Furthermore, "taxes as well as quarantine and inspection fees imposed on export pork are too high at the moment, pushing export prices higher and making Vietnamese pork less competitive," Lich said.

Thanh Hao, director of Export Food Processing Private Enterprise, said, "We can process 300 pigs daily but have to make do with 70 pigs a day and can meet only 20% of overseas orders. We cannot buy lean pigs as required by customers."

To promote exports of Vietnamese pork and pigs, enterprises proposed that Vietnam should sign veterinary agreements with countries which buy Vietnamese pork and pigs such as Singapore, Malaysia and South Korea