Commercial Pig Farms in the Context of Economic Intergration: Case in the Red River Delta, Vietnam

Abstract

The accession of Vietnam to WTO likely brings stiff competition in the domestic meat market, especially pork. Commercial pig farms, though contributing less than 20% of total pig meat production, will be much affected due to higher production scale. The study employed data from 77 commercial pig farms in the Red River Delta, showing that the farms are quite vulnerable to external conditions, of which disease outbreak and market fluctuation are the most risky factors. Both contribute to higher cost and lower market price for domestic pig meat, hence lower competitiveness of domestic pig producers. In 2012 when pork tariff is reduced 50%, pig producers will face competition from cheap imported meat. To enhance competitiveness of commercial pig farms, disease prevention and control are emphasized; sustainable supply of piglets should be concerned by building breeding stations in selected areas. Ministry of Agriculture and Rural Development also need to speed up the progress of expanding corn and soybean areas. Government plays important role in facilitating and protecting pig producers through wise management of imported meats, building alliances among farmers and relevant actors, spending for R&D, and other macro policies.