January 17, 2007

 

Chicken prices in Hanoi continues to soar despite bird flu outbreaks

 

 

Despite the occurrence of bird flu in seven provinces in southern Vietnam, poultry prices in the Northern provinces, particularly in Hanoi, keep rising as the Lunar New Year approaches.

 

Poultry prices are at high levels at all traditional markets in Hanoi. In Gia Lam market, dressed chicken from commercial farms selling at VND33,000 (US$2.05) to VND35,000 (US$2.17) per kilogramme, posting an increase of VND3,000 (US$0.18)  to VND5,000 (US$0.31) per kilogramme. On the other hand, backyard-raised dressed chicken is selling at VND70,000 (US$4.35) to VND80,000 (US$4.98) per kilogramme, up by VND10,000 per kilo (US$0.62), while live chickens are priced at VND47,000 (US$2.92) to VND 50,000 (US$3.11) per kilo.

 

Analysts said that price increase in poultry is due to the foreseen shortfall after the Lunar New Year since raisers are not expected to produce more than its usual capacity for fear of bird flu.

 

However, the exorbitant prices do not translate to high earnings as the purchasing power of the Vietnamese continues to decrease.

 

In December, sales of poultry meat and eggs have decreased by 10 to 15 percent. In Tran Chanh Chieu market, the wholesale prices of dressed poultry have returned to the normal prices after it posted an increase during the holidays. Commercial chicken prices have stayed at VND29,000 per kilogramme (US$1.80) while backyard-raised poultry is sold at VND58,000 (US$3.61) to VND60,000 (US$3.73). Ducks are priced at VND40,000 (US$2.49) per kilogramme.

 

In the central city of Da Nang, consumption of poultry meat has also declined as people shifted to other meat for fear of avian influenza.

 

Market vendors at Con market said sales of dressed chicken have been reduced by 30 percent while live poultry have just seen little increases.

 

Dressed chicken at Con, Han, Hoa Khanh markets are priced at VND60,000 (US$3.73) per kilogramme while the live ones cost VND 30,000 (US$1.86) per kilo.  Ducks on the other hand are sold at VND40,000 (US$2.49) per kilogramme. 

 

In related news, the prices of key goods have also increased by 10 to 20 percent, including pork and seafood. Pork prices have increased by 12 percent and seafood by 15 to 20 percent.

 

Dao Duy Tan, Deputy Director General of the Hanoi Department of Agriculture and Rural Development, said that Hanoi consumes 280 to 300 tonnes of animal and poultry meat every day, while the city can provide 40 percent of the demand for pork, 48 percent for chicken, and 8 percent for beef.

 

The Hanoi Trade Department has forecasted that consumption of goods, including meat, will increase by 30 percent during Tet days and by 15 percent few days after the occasion.