Paradoxical worth of animal feed will increase, reside pork plummets

The value of animal feed has constantly elevated, exhibiting no signal of cooling down, whereas the value of reside pigs has fallen to the underside, inflicting nice injury to home farmers. Financial institution loans couldn’t be repaid, inflicting many farmers to fall into chapter 11… To know extra concerning the causes of the rise in feed costs, in direction of options to decrease costs, and on the identical time supply synchronous options. To develop the livestock business, the Enterprise Discussion board had a dialog with Mr. Nguyen Thanh Son – Chairman of the Vietnam Poultry Affiliation, Former Director of the Institute of Livestock Manufacturing.

– The value of animal feed has elevated, whereas the value of reside pigs has decreased, inflicting farmers to fall into losses, even elevating increasingly losses. What do you assume, sir?

Sure, it’s the present state of affairs that the Vietnamese pork market is witnessing a paradox within the worth of some inputs, particularly animal feed, whereas the value of reside hog on the barn is plunging. . Nowadays (August 24, 2021), the value of reside pigs within the North ranges from 55,000-57,000 VND/kg, within the Central and Central Highlands 50,000-55,000 VND/kg, within the South 52,000-55,000 VND/kg. kg. In line with consultants’ calculations with the above worth, farmers are nearly not worthwhile, apart from breeding institutions that may produce their very own breeding inventory.

  Paradoxical price of animal feed increased, live pork decreased sharply - Photo 1.

As everyone knows, Vietnam’s industrial animal feed manufacturing business relies upon lots on the world’s provide of uncooked supplies, so from the top of 2020 till now, when the worldwide worth of animal feed substances will increase, inflicting home feed costs to additionally improve. In the meantime, after controlling the African swine fever epidemic, the nation’s whole pig herd within the first eight months of 2021 grew strongly, so the full home pork provide elevated. Nevertheless, as a result of influence of the COVID-19 epidemic, the full demand for pork decreased. Due to this fact, the value of reside hog constantly plummeting is inevitable.

– Vietnam has change into the 10th largest nation on this planet and the first in Southeast Asia when it comes to industrial animal feed manufacturing. So in your opinion, why is the value of animal feed in Vietnam a lot greater than in different international locations within the area akin to Thailand, Malaysia…? Is that this a brand new drawback or has the value of animal feed in Vietnam been excessive and uncompetitive for a few years, sir?

Though it’s a nation ranked within the high 10 on this planet when it comes to industrial feed manufacturing (in 2020, Vietnam’s whole industrial feed manufacturing is greater than 25 million tons, together with animal and aquatic feed). manufacturing), however the home worth of commercial animal feed is all the time at a excessive stage in comparison with different international locations. For my part, there are a number of causes as follows: One is, Vietnam’s animal feed business is the world’s uncooked materials business; Yearly now we have to import as much as 70-85% of feed substances from overseas, even some substances need to be imported 100%. Two is, Logistic prices, charges and fees are greater in our nation than in different international locations. Three is, the low cost charge that factories give to feed brokers is just too excessive (from 5-10%). The above three components have induced the manufacturing value of animal feed to be inflated.

  Paradoxical price of animal feed increased, live pork decreased sharply - Photo 2.

An animal feed agent in Thong Nhat district. Picture: B.Nguyen – Dong Nai Newspaper.

And another excuse is equally necessary, that’s, quite a lot of giant enterprises, companies producing industrial feed, FDI enterprises could also be dominating the home animal feed market. As a result of FDI animal feed companies are largely multinational companies with plenty of expertise, strengths in capital in expertise and the import market of uncooked supplies, at present occupying 60% of the feed market share. farmed within the nation, in order that they simply determine the sport available on the market.

The truth is, for a few years, the value of animal feed out there has fully trusted the “massive guys”, who’re all the time one step forward to find out the value of animal feed, whereas the Small-scale home enterprises usually need to go after “price-based”. Due to this fact, there’s a state of affairs that whereas home enterprises are pressured to cut back capability resulting from losses, the “massive guys” not solely don’t scale back capability however constantly spend money on constructing new factories.

– Vietnam is an agricultural nation with plentiful home uncooked supplies, however yearly it nonetheless has to spend billions of {dollars} to import corn, soybeans, fish oil…, sir?

The story right here is that the home provide of feed substances doesn’t meet the demand and the value is just not actually aggressive. For instance, within the final two years, annually the home provide of uncooked supplies for animal feed is just about Three million tons of corn, 5 million tons of rice bran, 0.5 million tons of damaged rice and 0.5 million tons of cassava chips. In the meantime, the annual demand for uncooked supplies for animal feed must be 26-27 million tons of all types. Due to this fact, to satisfy home demand, now we have to import uncooked supplies from overseas. In 2020, now we have to import greater than 20 million tons of animal feed substances with a turnover of greater than 7 billion USD.

– Earlier than the state of affairs in Vietnam, what resolution is required to chill down the value of animal feed within the close to future, and in the long run, sir?

With the current improve in international grain costs, it’s forecasted that within the coming time, home animal feed costs are unlikely to chill down however will even proceed to extend.

For my part, in addition to the speedy options akin to lowering import tax on some animal feed substances, the Vietnam Gia Livestock Affiliation has consulted with the Ministry of Finance and the Prime Minister (the import tax charge on corn could be lowered by a share level). from 5% in the present day to three%, wheat from 3% to 0%…). On the identical time, we have to have a technique to develop the manufacturing of home animal feed substances in a methodical and basic manner with many synchronous options to reduce extreme dependence on imported provides. Solely then will Vietnam grasp the sport within the subject of commercial animal feed.

Tuan Tu

Enterprise Discussion board