While large numbers of pig farmers nationwide are grappling with huge losses due to declining prices, their peers in Dong Nai have earned profits as a result of their cooperation with lenders and enterprises.
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While large numbers of pig farmers nationwide are grappling with huge losses due to declining prices, their peers in Dong Nai have earned profits as a result of their cooperation with lenders and enterprises.
The moment the public uproar about lean meat additives died down, pig farmers in Dong Nai began facing pig disease.
There were times when the price of live pigs dropped to a meager VND33,000 a kilo, causing an average loss of VND500,000 for a pig for local farmers. The staggering price fall, therefore, has kicked a host of pig farmers out of business.
Pham Thi Thanh Tuyen, a farmer in Thong Nhat District rearing some 400 sows and pigs for meat, was quoted by the news agency as saying: “My family was about to abandon pig farming while rumors about lean-meat additives were dragging down live-pig prices sharply. But five months ago, my family joined the tripartite collaboration and since then we have been able to take out bank loans at low interest rates and directly buy the mammal from producers.”
Those farmers like Tuyet really benefit from the new program as it helps them reduce input costs. With the current price of VND38,000 for one kilo of live pig, Tuyet still earns a profit of over VND200,000 a pig while other farmers suffer a loss of more than VND300,000.
According to an executive of Thanh Binh Company in Trang Bom District which is also a member of the program, the program offers farmers a discount of 5% when purchasing feed from makers. Participating firms will also support farmers to take out bank loans by installment plan.
Nguyen Huy Trinh, director of Agribank’s Dong Nai branch, said he feels secure that the loans his branch lends within the program would be used for designated purposes and could be taken back as committed by companies.
Chairman Nguyen Tri Cong of the Dong Nai Livestock Association, who initiated the farmer-business-bank connection, said his association is working on a plan to establish the five-party cooperation, which also includes the State and slaughterhouses. The purpose of the new linkage is to reduce retail prices of pork for the benefit of local consumers, he said.
(Source: SGT)
