The high cost of raising livestock, and the prolonged decrease in output prices, have caused farmers to suffer heavy losses and be forced to "hang up their barns".
Poultry consumption decreased
There were times when the selling price of poultry products was only 2/3 of the cost, causing many businesses and farms to face bankruptcy. Thousands of livestock farms have reduced production scale or had to temporarily stop operations due to prolonged losses.
Caused by animal feed and imported raw materials are costs that currently account for 60 - 75% of the cost structure of livestock products. When world prices increase, domestic costs also increase, while domestic prices continuously decrease due to limited purchasing power.
Ms. Hoa is a chicken vendor at Khuong Dinh market, Hanoi . Poultry wholesale market Ha Vy is where she often buys chickens to sell retail. Before, when she went to her regular supplier, she often made quick decisions about buying and selling, but now she has to pick up and put down chickens many times before deciding to weigh a few.
"I used to sell 15-20 pigs a day, but now I only get a few. On good days I only get a dozen, on bad days I only get a few," said Nguyen Thi Hoa.
According to traders at Ha Vy market, there are still many chickens at the farms. They are imported and sold at low prices but consumption is very slow, and on hot days, transportation and business will be greatly affected.
Mr. Le Ngoc Giang - a small trader at Ha Vy Poultry Wholesale Market, Hanoi said: "This year's consumption is half of last year's. Last year it was several tons a day, this year it is only half."
Ms. Le Thi Yen - a small trader at Ha Vy Poultry Wholesale Market, Hanoi said: "It takes 2-3 days to sell all the chickens in one session. The sun makes the chickens lose a lot of weight, so there is no profit."
Ha Vi poultry wholesale market is a place that supplies a large amount of poultry to the provinces and cities in the Northern region. According to the Market Management Board, in previous months, the average daily poultry consumption was about 45 - 50 tons, but now this number has decreased by nearly half, only about 25 - 30 tons.
Poultry prices are below cost.
If 10 years ago, the whole country had 10 million livestock households, now there are less than 2 million households. Faced with prolonged difficulties, the situation of "hanging up cages" is recurring in many localities.
Chicken farming has been a profession that has been associated with Mrs. Can Thi Quy's family (Trung Son Tram ward, Son Tay town, Hanoi) for many years. The breed of chicken she raises is the indigenous sugarcane chicken and the total flock always maintains 6,000 birds.
Ms. Quy said that at this time last year, poultry farming brought high profits to farmers. Traders bought chickens that were not yet ready for sale at prices ranging from 95,000 to 105,000 VND/kg. However, at this time, farmers are suffering heavy losses.
"At this time, farmers are struggling with prices. For example, my family's production price for chicken is 85,000 VND/kg, while the selling price is only 70,000 - 75,000 VND/kg. So, my family sells at a loss of 15,000 - 17,000 VND/kg at the barn door," said Ms. Quy.
Some large enterprises that both produce animal feed and raise large herds cannot avoid losses. The selling price is at 70-75% of the cost of raising animals, but the most difficult part is still the consumption stage. Raising animals at a loss, households reduce their herds or even hang up their barns, and accordingly the output of animal feed is also reduced.
"In 2021, we raised a total herd of 4 million pigs. But now, due to 3 consecutive years of losses, we only have 2 farms left, of which in Bac Giang we raise 60,000 pigs. Previously, we produced and supplied up to 12,000 tons of animal feed per month, but now it is only 3,000 tons per month," said Mr. Bui Duc Huyen - General Director of Viet Tin Nutrition Joint Stock Company.
Mr. Nguyen Thanh Son - Chairman of the Vietnam Poultry Association commented: "Due to the prolonged COVID-19 crisis, the impact of the storm in animal feed prices and especially the impact of large volumes of imported chicken meat, the already difficult poultry product consumption market has become even more difficult."
Many stabilization solutions will be needed to prevent disruption and stabilize the livestock industry both in the short and long term. The deep processing stage is still weak, the livestock product consumption market has many shortcomings in the connection between production and the market, currently the intermediary stage has the most profit. In addition, controlling the supply to protect domestic production also needs special attention.
In response to the Vietnam Poultry Association's reflection on the situation of transporting and trading smuggled poultry, the Prime Minister issued an urgent telegram requesting the Chairmen of the People's Committees of provinces and cities, especially border localities, to strengthen control of illegally transported poultry into Vietnam. In case of detecting illegal imported poultry shipments or poultry products, they must be re-exported or destroyed immediately; and organizations and individuals who violate the regulations must be strictly punished.
Source
Comment (0)