In a recent agricultural analysis report, VNDirect said that domestic animal feed prices are lagging behind world agricultural prices, so the cost of animal feed will gradually decrease in 2023.
In 2023, the demand for meat consumption will not decrease thanks to real income growth which is the result of the government's plan to increase the basic salary to about 20.8% by 2023. Moreover, international tourist arrivals are expected to recover by 84% in the second quarter of 2023 and 100% in the fourth quarter of 2023, leading to a strong recovery of entertainment, accommodation and food services. As a result, meat producers will record positive revenue growth in 2023.
This securities company also believes that the world palm oil price dropping by 8% year-on-year in 2023 will help alleviate the pressure on high raw material costs on cooking oil producers. As a result, these businesses will see their gross profit margin recover in 2023 thanks to easing cost pressure.
Besides, following the increase in export rice prices and global sugar prices, domestic sugar prices will increase in 2023 thanks to the impact of the new anti-dumping tax decision applied from August 2022. At the same time, Vietnamese rice exporters will benefit from India's restriction on rice exports.
When the scarcity of agricultural products in the world increased, boosting domestic rice production to increase productivity, thereby, high rice prices made Loc Troi's LTG stock quite promising.
Besides, the increase in rice price also boosted the production of An Giang Agriculture and Foods Import - Export JSC and The PAN Group.
Shares of AFX increased by nearly 14% from the beginning of 2022, continuously increasing with potential and prospect.
This shows that rice stocks have potential to prosper. These are promising stocks worth paying attention to.
Henry Tran – VietnamCredit
