While livestock farmers and small businesses are burdened with hardship due to the sharp fall of meat prices, animal feed producers are still making good profits.
The business performance reports of several listed animal feed companies show revenue and profit growth.
In particular, the after-tax profit of Dabaco Vietnam Corp. in the second quarter rose by VND10.3 billion, or 33 percent against the same period last year.
Dabaco chair Nguyen Nhu So said in the second quarter, animal feed consumption increased 31 percent year-on-year. As a result, the company’s revenue from this business surged by VND266 billion, or 34 percent year-on-year, and profits picked up VND41.7 billion, or 242 percent against last year’s figure.
On the contrary, Dabaco subsidiaries active in animal husbandry and food processing incurred a loss of around VND17 billion due to a sharp decline in food prices in the second quarter. Last year, these business fields brought in a profit og VND14 billion for the firm.
Meanwhile, Viet Thang Feed Joint Stock Co. also recorded revenue growth, though its profits fell in the second quarter.
The Q2 net revenue of the company increased VND75 billion against the same period last year, while costs shot up by VND87 billion. Therefore, the gross profit in the second quarter dropped VND12 billion, or 14.34 percent, and pre-tax profit went down VND13.35 billion, 21.35 percent year-on-year.
However, the six-month accumulated after-tax profit of Viet Thang is put at over VND84.5 billion, versus VND81.4 billion in the same period last year.
According to a report of the agriculture authority, animal feed material prices in July increased sharply against June. Specifically, prices of soybean meal rose to VND15,603 per kilo, up 15.2 percent, while cassava and rice bran marked up to VND5,565 and VND6,720 a kilo respectively.