Firms joining price stabilization program propose raising pork prices
Firms joining price stabilization program propose raising pork prices
Many firms participating in the price stabilization program have proposed raising its pork prices to match those on the local market, voicing concern that the product will be subsidized, heard attendees at a meeting with the Economic and Budgetary Committee of the HCMC People’s Council on December 19.
Speaking at the meeting, food processing firm Vissan championed the raise, Nguoi Lao Dong newspaper reported.
The price of live pigs has skyrocketed by 300% against that seen in April. Vissan is buying live pigs for VND92,000 per kilogram, and the price is forecast to rise to VND100,000 per kilogram in late December.
Nguyen Ngoc An, general director of Vissan, noted that the firm has repeatedly written to the municipal departments of Finance and Industry and Trade, and even the HCMC government, proposing the hike, but these proposals had failed.
The revenue from fresh meat products accounts for 50% of the firm’s total earnings, so Vissan will run into trouble if the departments and agencies do not allow the adjustment of prices, An stressed.
As such, Vissan has again asked the HCMC Department of Finance to allow it to raise its pork prices to suit the movements on the local market.
The HCMC Department of Industry and Trade reported that some firms had proposed raising the selling prices of pork as the buying prices of live pigs have soared recently.
Meanwhile, the municipal Department of Finance’s proposal to the HCMC government stated that the supply of pork on the HCMC market remains adequate, whereas the consumption of pork has fallen. As a result, the municipal Department of Finance suggested the HCMC government maintain the current price.
The department went on to explain that price adjustments may not work in some circumstances.
Nguyen Huynh Trang, deputy director of the HCMC Department of Industry and Trade, stated that the department is collaborating with the relevant departments and agencies to adopt effective measures to address the escalation of pork prices, including observing the pork market, efficiently deploying the price stabilization program and enhancing the supply of pork.
To stabilize pork prices, local firms have also been urged to proactively seek new meat sources and diversify their supply of alternatives for pork.
In addition, the HCMC Department of Industry and Trade called on the municipal government to have the relevant departments and agencies create a detailed plan to import frozen pork and live pigs as well as reduce import tariffs on pork.
Statistics from the HCMC Customs Department indicate that the city imported over 13,230 tons of pork worth US$26 million during the year up to December 10, up 7,130 tons, or 117%, year-on-year.
