January 5, 2009
Vietnam meat prices to increase during spring festival
Despite an expected lower meat demand, Vietnam's meat prices are likely to increase during the spring festival due to tight supplies, according to the Information Centre for Agriculture and Rural Development (Agroinfo).
An Agroinfo study conducted in Hanoi and Ho Chi Minh City showed that food consumption for this spring festival will increase about 38.3 percent over daily consumption levels, down from last year's 50-60 percent.
The study shows that demand for poultry meat and pork sausage will increase by 52.35 percent and 45.59 percent, respectively, during this period. Demand for beef and pork will also increase by 45.39 percent and 45.3 percent, respectively.
However, supply is likely to decline in the coming months. The amount of imported meat has decreased sharply as the government imposed meat import tariffs. The move aimed to protect the domestic breeding industry, which has been suffering from stagnant meat prices due to an influx of imported meat.
The slow recovery of the breeding industry from last year's animal feed price hikes and adverse weather, could also lead to short supply and high meat prices during the New Year season, said Agroinfo.
