Domestic animal breeders taking a hit from imports

Importing meat to regulate domestic market is posing a threat for local farmers as the price has recently fallen sharply.

Cheap chicken puts the squeeze on farmers

Statistics from the Department of Livestock Husbandry under the Vietnamese Ministry of Agriculture and Rural Development shows that local livestock breeders have been facing difficult circumstances since 2001. This in not only due to imports, but a number of other causes, including natural disasters, disease and inflation. This has made an environment very conducive to importers.

During the first nine months of the year, the country imported 85,249 tons of frozen meat, 83% of this was poultry. This represents an increase of 4.5 percent over the same period last year. Imported accounted for 10%-12% of the total quantity that was consumed in the country so far this year.

Poultry dealers peck out a living

Since mid-August, the continuous decline in the price of chicken in Binh Dinh Province have left local farmers at in the red.

Nguyen Van Bay, Head of Tan My Village, Tuy Phuoc District said: “Before August, our chicken was sold at VND 68,000 – 70,000 (USD3.4-3.5) a kilogram and, so we earned VND 20-25 million (USD1,000-1,250) for every 1,000 chickens. These profits drew many people into the trade. But lately wholesalers are offering very low prices.”

The largest farm in the village is run by Duong Van Chin, with over 6,000 chickens. He has been in contact with many dealers in Binh Dinh and HCM City who are unwilling to buy at all. In order to maintain the farm, he has to continue to pay for a tonne of food every day. This sum does not include labour and other costs.

Many farmers in other provinces are in the same situation as those in Binh Dinh.

Imports increase despite low prices

Poultry prices have decreased by nearly 50% over the last two months. Meanwhile, foreign organisations, such as the USA Poultry & Egg Export Council, continue to flood the local market with their products.

According to Pham Duc Binh, deputy chairman of the Vietnam Animal Feed Association, Vietnam’s poultry industry is not competitive enough. Binh also noted that the situation will become worse if drastic changes are not made. “There is a lack of investment in Vietnam because of instabilities in local breeding systems,” Binh explains.

Doan Trong Ly, Director of the Hanoi-based Aprocimex, which exports and supplies animal feed ingredients to 400 feed processing factories in Vietnam, attributes the situation to the import policy. “The Ministries of Finance and Industry and Commerce tend to import whenever domestic price goes up,” Ly says.

The head of the Thanh Hoa Provincial Department of Agriculture and Rural Development says that the poultry price has fallen to a very low price, at VND 27,000-28,000 (USD1.3-1.4) a kilogram in some areas. He suggests that meat import in general and poultry in particular should be reduced immediately.

Le Ba Lich, Chairman of the Vietnam Animal Feed Association, said “If the price of pork falls to VND 50,000 (USD25) a kilogram and chicken to VND25,000 – 26,000 (USD1,2-1,3) it could mean the end for the domestic breeding industry.”