VN animal feed prices rise sharply, farmers hit hard
THE price of livestock fodder has risen by 15-30 per cent in the last five months because of higher prices of inputs, and many farmers are facing big losses as a result.
Tran Quang Trung, a pig farmer in Dong Nai province’s Thong Nhat district, said a 25kg bag of bran has increased from 250,000 to 290,000 dong ($11 to $12.60) since October.
Prices of raw materials used for feed such as corn, rice bran and fish flour are also continuing to rise.
But farmers cannot hike prices of poultry or cattle since they compete with cheap imported products.
In Dong Nai province, the country’s largest chicken producer, the price of chicken has fallen below production cost since feed prices have increased from 20,000 dong per kilogramme to 26,000 dong, causing farmers an average loss of 3,500 dong per kilogramme of meat.
Poultry and livestock farmers
are suffering big losses, especially those with bank loans. Big farms that typically sell 10,00020,000 chicken of the Tam Hoang
variety a day are losing 30-40 million dong ($1300-1740) daily, according to the Dong Nai Animal Husbandry Association.
Vietnam Animal Feed Association deputy chairman Pham Duc Binh said animal feed production is controlled by importers and foreign businesses, while all the corn used for the production of animal feed is imported.
Vietnam only produces rice bran and cassava, and has failed to develop areas to grow feed inputs because of poor productivity, and the animal feed supply chain is not comprehensive, he added.
The dependence on imports, and the sharp increase in global prices of raw materials due to crop failures and China buying record quantities, means input prices have increased sharply.
The lack of empty containers, which are stuck in various ports around the world, to transport goods has increased the prices of imported raw materials further.
To minimise the monopoly of foreign enterprises and create competition, Binh said the state should plan raw material areas and offer preferential policies to domestic companies in terms of borrowing.