January 4, 2008

Imported chicken more preferable in Ho Chi Minh

Where previously local chicken have been widely consumed, Ho Chi Minh (HCM) city in Vietnam now imports 100 tonnes of poultry meat daily (5,000 tonnes a month) from 50 to 60 tonnes several months ago.

Imported chicken have been on the rise due to Vietnamese' rising purchasing power. Analysts say local consumers have gotten used to eat Western meat, being bird-flu free and its lower price.

Due to the government's reduced import tax rate from 20 percent to 12 percent, imported chicken prices have become cheaper, said chicken trader Doan Ngoc Tho.

Tho said companies can make 10 to 30 percent profit from imported chicken because of its cheaper cost.

This now affects entire domestic chicken prices since November 2007, said Tho. The wholesale price of chicken leg was VND26,000/kg several months ago, and is now selling at VND22,000/kg. Chicken wings, which was sold at VND40,000  to VND42,000/kg, are now selling at VND36,000/kg.

Live chicken prices dropped from VND38,000/kg to VND29,000/kg, while the prices of feed for fowls increased by from VND110,000/25kg bag to VND180,000

A poultry owner said many farmers have stopped breeding poultry because they have suffered big losses amid feed producers' announcement that they would raise feed price by another VND5,000 to VND7,000/bag.

Nguyen Thanh Tuan, the owner of a fowl farm in Dong Nai province, said that he has incurred the loss of VND200 million, while other farms lost VND500 million.

Pham Van Minh, Director of Phu An Sinh Company in Ba Ria - Vung Tau, said the total cost to breed a fowl is VND22,400/kg, while farmers can sell at VND21,000/kg only, which means that they incur the loss of VNDVND1,400/kg

US$1 = VND15,990 (as of January 3, 2008)