Agri firm BAF Vietnam not affected by US tariffs: chairman

BAF Vietnam Agriculture JSC, a leading agri business in Vietnam, will not be affected by U.S. tariffs imposed on imports from Vietnam, according to its chairman Truong Sy Ba.

“Most of our animal feed is imported from South America and the Black Sea region. If the U.S. enforces heavy tariffs, China - which has a large livestock market and is also a major importer of animal feed - may reduce its imports from the U.S., potentially causing U.S. agricultural prices to drop significantly.

"In fact, according to some statistics, U.S. crop prices have already fallen by around 10% recently. This could lead to lower feed prices and raw material costs, ultimately improving our profit margins,” Ba told shareholders at the firm's 2025 AGM on Wednesday.

He further noted that in the Vietnamese market, consumers still overwhelmingly prefer freshly slaughtered meat over imported frozen, which still holds a relatively small market share. As such, imported meat does not currently pose significant pressure on BAF.

No cash dividend for 2024

Addressing shareholders’ concerns about no cash dividend for 2024 despite a 10-fold growth compared to 2023, the chairman explained this is in line with commitments made to foreign investment funds and strategic investors.

“I sincerely apologize to our shareholders. But we have pledged with foreign investors like IFC not to pay cash dividends until the end of 2026. Instead, we are channeling all available resources into our ambitious growth plans, including farm expansion and market development,” he said.

BAF’s stock value has grown steadily with strong liquidity, he stressed, promising cash dividends from 2027.

“Modest” profit target for 2025, strong growth through 2030

According to the chairman, this year, BAF targets VND5.6 trillion ($215 million) in net revenue, unchanged from last year, and VND774 billion ($29.72 million) in pre-tax, up 91% year-on-year.

He described the profit target as “modest” as live hog prices are rising significantly. The current production cost is about VND45,000 ($1.73) per kilogram, while the selling price ranges from VND63,000 to VND64,000 per kg, generating a profit margin of around VND1.5 million ($57.62) per pig, which is considered very favorable.

Meanwhile, CEO Bui Huong Giang shared that in Q1/2025, the company recorded over VND1.1 trillion ($42.25 million) in net revenue, with approximately 160,000 pigs sold, and pre-tax profit of around VND140 billion ($5.38 million), fulfilling 19.6% and 18% of the year's targets, respectively.

“In 2024, livestock farming accounted for about 60% of total revenue, while the remaining 40% came from agricultural products. However, in 2025, the company will fully shift its focus to the core livestock segment, with a projected total output of 900,000 pigs. This shift in revenue structure lays the foundation for BAF’s strong profit growth expectations this year,” she emphasized.

Regarding BAF’s debt reduction goal and development strategy beyond 2027, chairman Ba further said that based on the set targets, the company will need a total investment capital of approximately VND53 trillion ($2.04 billion).

“Starting from 2027, we plan to rely on equity and retained earnings for reinvestment, instead of using borrowed funds. At the same time, we’ll gradually pay off existing loans,” he stressed.

“By that time, our total equity is projected to reach about VND23 trillion ($883.82 million). I’m confident that if we maintain our current growth momentum and achieve these objectives, by 2030, BAF will no longer be just a livestock company but a food company,” he concluded.