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| The signing ceremony (Photo: VNA) |
According to the agreement, the parties will study, develop and operate the pork trading floor in the city in the form of spot contracts and futures contracts.
The trading floor will be formed and developed based on the infrastructure of the MXV, including trading and payment systems, a goods delivery centre, and the provision of market information and transaction of all types of contracts in line with international standards.
According to Mr. Nguyen Nguyen Phuong, Deputy Director of the HCMC Department of Industry and Trade, the efficiency of the pork trading floor will overcome the dependence on traders and the unstable price, and farmers have the right to decide the selling price. Through the trading floor, goods will ensure a higher quality of food safety.
According to Deputy General Director of MXV Nguyen Ngoc Quynh, compared to the traditional business method, the pork trading floor will be different in the organisational model and operation as modern technology infrastructure will be applied in the transactions, adding that MXV learned a lot of valuable lessons while working with major commodity exchanges, especially the Chicago Mercantile Exchange.
Besides, thanks to the trading floor, pork traders are provided with modern and effective buying and selling tools, which continue to play a pivotal role in the pork supply chain. In addition, consumers will use products that are strictly controlled with food safety assurance and true product value.
The pork trading floor is expected to help the city implement a modern livestock plan, gradually reducing spontaneous breeding, and building industrial-scale cattle slaughterhouses.
According to the statistics of the HCMC Animal Husbandry and Veterinary Sub-Department, every day the city consumes 10,000 pigs (equivalent to 800 tons of meat), 400–500 cows (equivalent to 120 tons), and 125,000 poultry (equivalent to 250 tons). Of these, pork accounts for 75%./.