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Pig farmers incur losses, pork shortage for Tet holiday possible

More than 10 days ago, Nguyen Cong Bac, the owner of a pig farm with 10,000 pigs in Son La, had to sell pigs at VND42,000 per kg of live weight, which made him incur big loss. And he sold another 600 pigs on October 6-7 at VND36,000 per kg only. With the current price, I take a loss of VND2 million for every pig sold, Bac said. The households farming in small scale would incur a bigger loss, VND2.5 million per pig." These are the lowest price levels since late 2019, when ASF* epidemic appeared for the first time in Vietnam. According to the Ministry of Agriculture and Rural Development (MARD), the herd is gradually recovering from ASF, but farmers are facing difficulties as animal feed prices have increased by 16-30 percent since late 2020, while pork prices have been decreasing since late April because of the demand decrease. Mr. Nguyen Van Trong from MARD confirmed that pork prices are decreasing because of the sharp fall in demand in large markets. The husbandry sector is under pressure because of the disruption of the supply chain during Covid-19. Meanwhile, the transportation cost increase has led to a big difference between the prices of pigs at farms and the prices of pork at retail markets. Therefore, local authorities need to support pig farmers to re-herd and avoid farming interruption. Its also necessary to create favorable conditions for the transport of pigs, animal feed, breeding and merchandise pigs. Commercial banks should extend debt payment deadline or freeze debts to help farmers keep farming. MARD said it is working with livestock companies on re-herding pigs to ensure sufficient pork supply for the year-end sale season.

*African Swine Fever (ASF) is a highly contagious viral disease of pigs.

a. Describe the factors of production of this pig farm. b. List the stakeholders of this pig farm. c. Describe the business environment affecting the development of this pig farm.