News 466 views last update:6 Aug 2012

Vietnam: feed costs impact meat industry

If the animal breeding and feed processing industry do not to solve its current situations soon, Vietnam may have to import pork, beef and poultry at the end of this year, Le Ba Lich, chairman of the Vietnam Animal Feed Association has warned.

Feed prices cause for concern
Lich stated that many pig farmers, especially in southern provinces, quit the business when feed prices sky rocketed.

Currently, the price of pig feed is VND8,500 (US$0.51) per kilogram. To produce one kilogramme of pork, 2.6 kilogrammes of feed are needed, which costs VND22,100 ($1.34).

A kilogramme of live pig goes for VND32,000 ($1.94) -34,000 ($2.06) in the south and VND28,000 ($1.70) - 30,000 ($1.82) in the north.
Breeders can no longer afford work
According to Lich, with capital used to buy breeding animals and animal feed which comes from loans with 20% interest, breeders cannot afford to continue work.

In addition, blue ear disease and bird flu have also played a role in the current meat shortage.
Pork accounts for 80% of the country's meat consumption, chicken 11%-12%, and beef 3%-4%.
Investments to avoid shortages
To avoid meat shortages and encourage pig farming, Lich said, the association plans to invest in production and imports of raw materials for animal feed production.
The association requested that banks lower interest rates on loans, the Ministry of Finance to eliminate the value added tax (VAT) for raw produce, the Ministry of Industry and Trade to reorganise distribution systems.

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