by DINH DAI - TRUONG DANG 04/02/2025, 02:38

BAF Vietnam’s record profits: The secret behind its success

Thanks to proactive feed management and a decline in feed ingredient costs, BAF Vietnam, a leading pig farming enterprise, has achieved record-high profits.

*BAF achieves record profits since its stock market debut by securing its animal feed supply – Source: BAF.*

According to the Q4/2024 financial report, BAF Vietnam Agriculture Joint Stock Company (HoSE: BAF) recorded strong business growth, with net revenue reaching VND 1,627 billion, a slight increase compared to the same period last year. However, the cost of goods sold decreased by 12%, leading to a remarkable 457% surge in gross profit to VND 230 billion.

In BAF’s revenue structure, sales from pork accounted for the largest portion, reaching nearly VND 958 billion, an 185% increase compared to the same period, equivalent to over 140,000 pigs sold in Q4/2024.

During this period, BAF’s expenses remained relatively stable, while gross profit surged. As a result, the company reported a net profit of VND 109 billion in the last quarter of 2024, a sharp contrast to the nearly VND 30 billion loss recorded in the same period of the previous year.

According to the company, the key driver behind BAF’s significant profits was its proactive control over animal feed supply through two dedicated "vegetarian feed" plants. Additionally, feed ingredient prices dropped by 10-20%, reducing production costs and leading to an impressive quarter of business performance.

For the full year 2024, BAF's net revenue grew by 7% year-on-year, reaching VND 5,554 billion. Net profit surged to VND 320 billion, a staggering 968% increase from the modest VND 30 billion in 2023. This also marks the highest profit ever recorded by this leading pig farming enterprise since its stock market listing.

In 2024, BAF intensified its acquisition strategy to expand pig production, aiming to establish itself as Vietnam’s leading livestock enterprise.

To achieve this goal, in September 2024, BAF formed a strategic partnership with Muyuan Foods to adopt smart farming technologies and integrate artificial intelligence (AI) into its livestock operations. This collaboration allows BAF to optimize costs, enhance productivity, and ensure high biosafety standards.

BAF pursued mergers and acquisitions (M&A) vigorously after the partnership with Muyuan Foods, acquiring 13 livestock companies in two months beginning in December 2024. These purchased companies have farm infrastructure and land reserves, and they are currently finishing up legal requirements before building can start. With an anticipated capacity of around 63,000 breeding sows and 500,000 market pigs, the recently purchased farms are anticipated to go into operation between 2025 and 2026. By using this approach, BAF hopes to sell more than a million pigs by 2025.

On the stock market, BAF shares are currently priced at VND 27,650 per share, reflecting a nearly 56% increase since early September 2024.

According to the Vietnam Livestock Association (AHAV), in 2024, live hog prices exhibited a slight upward trend, encouraging pig farmers and businesses to maintain and expand production. Overall, the pig and poultry industries experienced steady growth. Live hog prices at the beginning of the year remained stable at around VND 52,000–60,000 per kilogram. Mid-year, prices trended upward, peaking at VND 70,000 per kilogram in June 2024 before settling at around VND 64,000–66,000 per kilogram. This upward trend extended through the 2025 New Year period, with prices fluctuating between VND 65,000–67,000 per kilogram.

Regarding the animal feed industry, AHAV noted that the sector benefited from several favorable conditions, such as large-scale livestock farming, a sizable market, and relatively smooth import-export procedures. Import taxes on key feed ingredients were minimized, and multiple policies and initiatives supported feed manufacturers. Additionally, regulatory frameworks and administrative procedures improved, fostering a more globally integrated business environment. There is also growing potential for exporting Vietnamese animal feed products, with increasing adoption of digital technology to streamline administrative processes.

On average, animal feed ingredient prices in 2024 declined compared to 2023. Specifically:

Corn prices dropped the most, by 15.7%
Soybean meal declined 10.6%
Defatted rice bran fell 7.9%
Lysine HCL decreased 11.5%
Finished feed prices for fattening pigs (60kg and above) dropped 6.9%
Compound feed for colored-feathered broilers fell 5.0%
Compound feed for white-feathered broilers declined 5.3%

However, AHAV pointed out that Vietnam’s livestock industry still faces several challenges in 2024. These include the impact of Typhoon Yagi (Storm No. 3) in northern provinces and outbreaks of African Swine Fever (ASF) in several farming operations, particularly in smallholder farms across various cities and provinces.

Additionally, Vietnam’s livestock sector continues to experience a trade deficit, with significant reliance on imported animal feed ingredients. The implementation of the Livestock Law and its related regulations has also been slow in several localities. Key concerns include the relocation of farms from non-permitted zones, slaughterhouse management, centralized slaughterhouse development, and controlling animal imports across borders.