Pig production, with favourable production trends and with PRRS (blue ear) under better control, the estimated total pig population has increased from one per cent to 1.5 per cent over the same period compared to 2013.

At the end of August, there was no province in the country with any reported breaks of flu or foot and mouth disease or blue ear (PRRS) within 21 days.

After nearly two years of serious low prices in the pig industry, the past 3 months have shown better prices with good profit potential. However, this is only found in the southern part of Viet Nam. In the north, pig prices are lower and quite close to breakeven or in most cases, even losses. Specifically, the price of market pigs is as follows: In Dong Nai region (near Ho Chi Minh City), the market pig prices inched up further by 200 VND/kg ($0.01 USD/kg-$004 USD/lb.) to 55,500 VND/kg ($2.62 USD/kg-$1.19 USD/lb) as compared with the previous month. Meanwhile, market pig prices in the north (Hanoi area) continued to decline by 300 VND/kg ($0.014 USD/kg-$0.006 USD/lb) to 45,500 VND/kg ($2.15USD/kg-$0.98 USD/lb.).

The demand for pork in Viet Nam for 2014 will reach about 2.245 million tonnes, up 1.8 per cent as compared with 2013. Pork production in Viet Nam for the entire year is expected to reach 2.260 million tonnes.

Some current pork prices: with lean pork at 90,000 VND/kg to 100,000 VND/kg ($4.25 USD/kg-$1.93 USD/lb. to $4.72 USD/kg-$2.14 USD/lb.); with hams: 85,000 VND/kg to 90,000 VND/kg ($4.01 USD/kg-$1.82 USD/lb. to $4.25 USD/kg-$1.93 USD/lb.); lean loin meat: 95,000VND to 105,000VND/kg ($4.49 USD/kg-$2.04 USD/lb to $4.96 USD/kg-$2.25 USD/lb.); and fat pork: 40,000 VND/kg($1.89 USD/kg-$0.86 USD/lb.).

As reported in the Saigon Times, the value added tax (VAT) on imported animal feed and feed ingredients has been recently reduced from 5 per cent to zero (0 per cent).

For the month of July 2014, the value of imported animal feed and feed ingredients into the country was $302.5 million USD (down 26.1 per cent from the previous month). However, the total imports for this sector has reached $1.9 billion USD for the first seven months (an increase of 9 per cent over the same period in 2013). Corn import volume has increased significantly this year. Specifically, total corn imports for the first seven months have reached 2.66 million tonnes (an increase of 139.4 per cent compared to the same period in 2013).

By the end of August, the value of all imported feeds and feed ingredients had reached a total of $ 2.25 billion USD and corn had reached a total import volume of 2.83 million tonnes (worth $ 734 million USD).

Viet Nam has shown a large increase in the importation of meat products with a small decrease in the export of meat products. For the first 5 months of this year, the price of exports reached $20.92 million USD, a slight decrease of 2.4 per cent over the same period in 2013; however, the value of imports reached $89.25 million USD, up 28.6 per cent as compared to last year. In general, the amount of pork imported into Viet Nam is an average of 250-300 tonnes/ month. Total pork imports to date are 1,941 tonnes, up 9.4 per cent as compared to the same period in 2013. The total value of the imports has reached $ 3.53 million USD (up 1.0 per cent). The chief imported products include mostly frozen ham, bacon, sausages and legs. To date, the pork imports come mainly from 8 markets: Canada (28.2 per cent), Spain (25.8 per cent), USA (19.2 per cent), Germany (14.4 per cent), France (5 per cent), Denmark (4.2 per cent), Australia (2.0 per cent) and Poland (1.2 per cent).

Since the beginning of the year, the imports of swine breeding stock have shown a total of 1,656 head, an increase of 1.9 times over the same period in 2013. These animals reached a total market value of $1.450 million USD, an increase of 1.7 times over the same period in 2013. In terms of the breeds imported: Yorkshire (77.1 per cent), Landrace (11.1 per cent), Pietrain (7.5 per cent) and Duroc (4.3 per cent). The market has shown a greater increase in the import of US pigs (from 6.2 per cent to 60.7 per cent of the total) and with a significant drop from Thailand (from 51.5 per cent to 7.6 per cent of the total). These animals are the basis for breeding, improving the productivity and the quality of existing domestic breeds. In the near future, the demand for good purebreds is very large and the market forecasts similar growth patterns will continue.

Recently, Nguyen Dang Vang, Chairman of Viet Nam Livestock Association, commented that in the next few years, farmers will have to accept the fact that the country will have to import more meat. To survive, the local farmers will have to develop ways to compete with imported meat that has better quality. One consideration is to become more integrated like in the US and Canada, where the livestock sector is a systematically linked chain that includes: feed production, breeding, raising, processing and distribution markets.

Mr Nguyen Tri Cong, President Dong Nai Livestock Association, said the government should encourage the “bonding pattern of production to consumption”. Some livestock enterprises that are 100 per cent Viet Namese owned have been successful such as Agrifood, Dabaco, and Proconco. They have large-scale feed mills (thus reducing manufacturing costs and product costs). These enterprises produce breeding stock and have their own multiplication (again, a reduction in costs). In addition, they produce high added value meat products that they sell through their own channels or have access to large retail/food store outlets. These agribusinesses are then better able to compete with imported meat or foreign integrated livestock enterprises.

Currently, many households have been paying attention to implement measures to reduce the cost of inputs for production such as utilizing more efficient breeding stock, producing their feed via home feed mills, utilizing the biogas to reduce utility costs and using or selling the organic manure for crop production. However, many livestock farmers also need help to develop marketing contracts. Farmers need accurate information on pork demand and supply situation in the market to help them plan the future breeding and rearing developments.

Various agencies and veterinary departments across the Country have recently been inspecting pig farms for banned chemicals. So far 6 farms from a total of 20 farms have been caught using the banned product Sulbutamol. The product is added to the feed to enhance lean meat production.

According to the General Statistics Office, the country's consumer prices rose 0.23 per cent in July from the previous month and 1.62 per cent since the end of 2013. The consumer price index rose 0.22 per cent in August as compared with the previous month.