AsemconnectVietnam - Despite pressure from falling pig prices and rising interest rates in the first 6 months of the year, BAF maintained strong growth in revenue, production volume, and investment scale. According to the company, short-term profits were affected by the investment cycle and market developments, while operational indicators continued to record positive results, creating a foundation for long-term growth.

Revenue and Production Growth
According to the recently published consolidated financial report for the first six months of the year, BAF recorded consolidated net revenue of VND3,899 billion, a 55% increase compared to the same period last year and achieving 105% of the six-month plan. Gross profit reached VND797.5 billion, a 31.4% increase, reflecting the continued positive growth of its core business of livestock farming. Notably, pig production reached approximately 532,000 head, a 61% increase compared to the same period last year and achieving 99% of the plan for the first six months of the year. This is the result of expanding the herd size and bringing more farms into operation in recent times. To date, BAF's total herd size has reached approximately 900,000 head, creating a stable supply foundation.
In addition, BAF continues to boost investment in its production system by bringing its third animal feed factory in Binh Dinh (now Gia Lai) into operation, increasing the company's total animal feed production capacity to 750,000 tons/year, contributing to proactively securing raw materials for the Feed – Farm – Food chain.
Net Profit Decreases Due to Investment Cycle Impact
Net profit for the first six months of the year reached VND310.9 billion, a decrease of approximately 9% compared to the same period last year, mainly due to several factors occurring simultaneously in the second quarter.
In particular, the decrease in the average price of live pigs compared to the same period last year directly affected the profit margin of livestock farming operations. Simultaneously, rising interest rates led to increased borrowing costs.
Besides market factors, the company is also in a phase of heavy investment in large-scale farm systems. The commissioning of many new projects increases fixed costs such as depreciation, personnel, utilities, and operation, while capacity takes time to reach optimal levels. Along with this, BAF continues to increase investment in biosecurity and restocking to proactively respond to the complex developments of African Swine Fever (ASF). According to the company, these are necessary investments to ensure operational efficiency and the quality of the pig herd in the long term. Specifically, high-tech farms utilizing AI, robots, automated machinery, and modern environmental treatment systems will be put into operation, such as Tay An Khanh - Tay Ninh (with a capacity of 60,000 fattening and weaning pigs, supplying approximately 150,000 commercial pigs annually), and Giai Xuan - Nghe An (with a capacity of 5,000 breeding sows and 60,000 fattening pigs per litter).
Simultaneously, construction will begin on new high-tech farm projects such as: Hung Phat Farm 1 (5,000 sows, 60,000 fattening pigs, 150,000 commercial pigs annually); Hung Phat Farm (2,400 sows), and Tan Phat Hai (48,000 fattening pigs). Large-scale projects such as Gia Han - Quang Tri (with a capacity of 15,000 sows and 450,000 commercial pigs per year) and Thanh Dat Gia Lai - Gia Lai (with a capacity of 5,000 sows, 60,000 fattening pigs, and 150,000 commercial pigs per year), scheduled to commence in 2025, are also accelerating their construction.
The Food segment is also showing positive progress, accounting for approximately 20% of revenue. This demonstrates that BAF is gradually completing the Feed – Farm – Food value chain by boosting production, developing its distribution system, and investing in building the anfarm brand of clean food. This strategy helps BAF not only control quality throughout the production chain but also gradually build a trustworthy brand of clean meat, providing consumers with safe, transparent products in terms of origin and quality.
According to BAF representatives, the pressures on profits in the second quarter were mainly short-term and related to the investment cycle. As the new farms operate stably, reach their maximum design capacity, and the Feed-Farm-Food chain continues to be perfected, the company expects operational efficiency to improve, thereby creating room for growth in subsequent phases.
Source: VITIC/Bao Tai chinh – Dau tu