In Vietnam, pig husbandry stands as the primary livestock sector, contributing to over 62% of the total meat output from domestically produced livestock. According to recent research, the figure indicates that by the end of 2023, the total number of pigs is estimated to exceed 26 million (excluding over 4 million piglets), marking a 4.2% increase over the same period in 2022.
In 2023, Vietnam witnessed its highest pig count in the last 5 years, with an average growth rate of 6.94% per year from 2019 to 2023. Simultaneously, the growth rate in live-weight pork production during the period of 2019 to 2023 averaged 4.3% per year.
The pig husbandry industry has undergone rapid restructuring, with small farming areas (a characteristic of Vietnamese pig husbandry) progressively diminishing. Instead, huge and extremely large livestock farms with industrial and modern investments, emphasizing environmental factors, are on the rise.
According to a report from the Department of Livestock Husbandry, large domestic livestock enterprises (such as Masan, Truong Hai, Hoa Phat...) and foreign direct investment (FDI) enterprises (CP, New Hope, etc.) continue to invest in pig husbandry following modern industry standards, moving towards establishing closed livestock product value chains. In 2022, 81 FDI projects were investing in the livestock sector with a capital exceeding USD 2.2 billion (accounting for over 12% of the total FDI capital invested in Vietnam).
C.P Viet Nam
CP Vietnam, a member of CP Thailand, has been operating in Vietnam since 1993 with 100% foreign investment. In 2008, CP Vietnam Livestock Company Limited officially transformed into CP Vietnam Livestock Joint Stock Company. CP is a diversified production and business corporation, with animal husbandry being one of its significant fields.
In the pig husbandry industry, CP currently operates and initiates a series of modern farms such as the Lac Thuy farm (100 hectares), 2 farms in Loc Ninh, etc. Additionally, the company collaborates with farmers to implement a pig husbandry system in households. Until now, the total number of sows raised in households is approximately 200,000 pigs with an average productivity of 23.5 weaned piglets per sow per year (equivalent to 4.7 million piglets raised for breeding and meat production annually). Every year, CP Vietnam supplies more than 6.8 million market hogs to the market.
CP Vietnam's net revenue experienced a breakthrough in 2022, surpassing VND 84 trillion after two years of maintaining revenue levels close to VND 81 trillion. However, contrary to the increasing revenue trend, the brand's after-tax profit decreased by 40-55% annually, reaching nearly VND 5,000 billion in 2022.
The net revenue and profit after tax of C.P Viet Nam
MEATLife
Masan MEATLife, a member company of Masan Group, entered the meat supply chain by merging the two leading animal feed companies in Vietnam, ANCO and Proconco, in 2015.
Apart from expanding points of sale, the company invests in the entire supply chain (farms, processing plants, etc.). Currently, MEATLife owns a high-tech pig farm in Nghe An spanning over 223 hectares, with an investment capital of up to VND 1,400 billion, capable of supplying 250,000 pigs per year.
In 2022, MEATLife's net revenue went down by VND 1,000 billion compared to 2020, reaching over VND 9,800 billion. However, the company witnessed a breakthrough growth in profit after tax, earning nearly VND 4,000 billion in 2022 after two years of maintaining a negative level of close to VND 100 billion.
BAF Agriculture
Established in 2017, BAF Vietnam Agriculture Joint Stock Company primarily operates in the field of pig husbandry, focusing on developing a strategic business model based on the 3F chain of Feed - Farm - Food.
Currently, BaF owns a system of 28 sow and market hogs farms (including operating and developing farms nationwide), with each farm ranging from 10-50m2 in scale and a total herd of over 300,000 animals, supplying the market with nearly 1 million commercial pigs per year (as of September 2023).
Regarding BaF's business performance in the three-year period 2020-2022, the company's net revenue gradually decreased year by year, achieving just over VND 7,000 billion in 2022. Conversely, profit after tax experienced a breakthrough in 2021, followed by a slight decrease in 2022, reaching nearly VND 240 billion.
Farm scale of some pig husbandry brands
THACO Agri
In 2019, THACO established Truong Hai Agricultural Joint Stock Company (THACO AGRI) as a member group operating in the agricultural production and business sector, implementing an investment strategy for agricultural and forestry development on a large scale spanning an area of 84,000 hectares across Vietnam, Laos, and Cambodia.
In pig husbandry, THACO Agri currently operates 15 large farm clusters across three provinces in Binh Dinh, An Giang, and Dak Lak, with a commercial pig capacity of approximately 650,000 pigs per year.
THACO Agri witnessed impressive net revenue growth over the three years, but profit after tax did not show positive signs. Specifically, the brand's net revenue increased sharply each year, reaching more than VND 5,500 billion in 2022. Meanwhile, the company's after-tax profit remained negative, recording a loss of VND 1,000 billion in 2022.
New Hope
New Hope Liu, a globally renowned company, has extensive development in agriculture, livestock, and the food industry. In Vietnam, New Hope has constructed 8 animal feed factories and 03 modernized pig farms across several provinces farms in Ho Chi Minh City, Hanoi, Hai Phong, Dong Thap, Binh Dinh, Bac Giang, Thanh Hoa, and Vinh Long.
Regarding the field of pig farming, New Hope has three pig farm projects in Binh Phuoc, Thanh Hoa, and Binh Dinh with a total area exceeding 200 hectares and an investment capital of USD 200 million, along with a total capacity of up to 27,000 sows.
New Hope Binh Phuoc
Experiencing a net revenue growth rate of 120% per year, New Hope Binh Phuoc observed steady revenue development. However, the company's after-tax profit steadily declined by 90% annually, plummeting to only VND 10 billion in 2022.
New Hope Thanh Hoa
The growth trends in net revenue and profit after tax of New Hope Thanh Hoa were the opposite. While net revenue showed strong signs of rise in 2021 and 2022, profit after tax continued to decline year by year, recording a negative VND 300 billion in 2022.
New Hope Binh Dinh
New Hope Binh Dinh's business situation saw a downturn in 2021 in terms of both net revenue and profit after tax. However, the company swiftly recovered growth in 2022, standing at a net revenue of nearly VND 140 billion and a profit of over VND 3 billion. Nonetheless, the profit after tax in 2022 was significantly lower than that of 2020.
Net revenue of some pig husbandry companies in Vietnam
LINKFARM
Linkfarm, a subsidiary of GreenFeed Vietnam Joint Stock Company, specializes in the livestock, poultry, and aquaculture feed industry in Vietnam. GreenFeed Vietnam Joint Stock Company established LINKFARM Company Limited to develop and expand the system of industrial pig farms, including the Vietnamese Village farm with a scale of 5,000 sows and 60,000 market hogs built in Binh Thuan province.
LINKFARM's revenue and profit after tax exhibited opposite growth trends. While net revenue grew steadily at approximately 28-32% per year, profit after tax experienced a sharp fall from positive to negative, achieving negative VND 70 billion in 2022.
Farm scale of some pig husbandry brands
HAGL
HAGL Group, focusing on investing and doing business in three main areas—banana cultivation, durian, and pig farming—initiated its investments in the pig husbandry industry in 2020. By 2023, HAGL had constructed 10 barn clusters with a capacity to raise about 600,000 pigs per year.
In terms of revenue solely from the pig husbandry sector, HAGL recorded remarkable revenue growth in the three years from 2020 to 2022. By 2022, the pig husbandry field contributed nearly VND 1,700 billion to the total revenue, accounting for 33.2%, which is three times higher than in 2021 and 14 times higher than in 2020.
Thai Viet Corporation
Recognizing the potential of the animal feed and livestock sector in Vietnam, Thai Foods Group established Thai Viet Agri Group Co., Ltd. in July 2011 to produce and trade animal feed to cater to the needs of the Central provinces.
By April 2013, Thai Food Group expanded its investment in the livestock sector by establishing Thai Viet Swine Line Co., Ltd., later renamed Thai Viet Corporation Joint Stock Company, specializing in breeding pigs and super lean pigs. As of now, Thai Viet Corporation's total pig herd has reached 27,000 sows and 130,000 market hogs, making it one of the top enterprises with the largest livestock business scale in Vietnam.
Similar to many other companies, Thai Viet Corporation recorded stable growth in net revenue, surpassing VND 1,600 billion in 2022. However, profit after tax gradually decreased and only reached about VND 10 billion by 2022.
Profit after tax of some pig husbandry companies in Vietnam
Hoa Phat Livestock
Established in 2015, Hoa Phat Livestock Development Joint Stock Company specializes in providing high-quality breeding pigs and market hogs to the market. Hoa Phat currently operates six pig husbandry systems across various provinces. In 2022, Hoa Phat's pig production reached nearly 404,000 pigs, including 352,000 finished pigs, marking a 22% increase over the same period in 2021.
Hoa Phat Livestock saw net revenue growth over three years, but profit after tax tended to be negative. Specifically, the company's revenue went up by about 70% annually from 2020 to 2022, achieving nearly VND 560 billion. However, the after-tax profit gradually declined from nearly VND 800 billion in 2020 to just over VND 200 billion in 2022.
ANOVA Farm
Anova Farm, a member brand unit of Nova Consumer under Novaland Group, was established in November 2023. The company builds a production system with a closed-chain pig husbandry model, facilitating easier source traceability. Annually, the company supplies the market with 28,000 piglets and 18,400 market hogs
In terms of ANOVA Farm's business performance, while the company's net revenue remained relatively stable at around VND 300 billion per year, profit after tax experienced a sharp decline, reaching only about VND 600 million in 2022, a decrease of 200 times compared to 2020.
With a population of nearly 100 million people and an improving average income, the demand for clean, traceable food in Vietnam is increasing. However, Vietnam remains an unstandardized meat market, with over 90% of pork products lacking brands.
Meanwhile, consumers are increasingly seeking products with traceable origins. Therefore, with the pork market worth more than 10 billion USD being the largest segment in the F&B industry, this presents favorable conditions for many businesses to expand production according to food hygiene and safety standards. Additionally, there is also an opportunity for businesses outside the industry to expand into the livestock sector.
Source: Vietdata’s Vietnamese pig husbandry market report in 2023