March 20, 2013
Dominance of foreign firms spurred egg price hikes in Vietnam
Vietnam's Ministry of Agriculture and Rural Development (MARD) is concerned over rising egg prices in early 2013 due to the dominance of foreign firms in the livestock and animal feed markets.
CP Vietnam, together with some foreign enterprises, currently holds 60% of the animal feed market. According to Nguyen Xuan Duong, a senior official of the Ministry of Agriculture and Rural Development, the enterprises now control the domestic market and define market prices.
Market prices have escalated dramatically, taking economists by surprise. CP Vietnam, a livestock company which now holds the biggest market share, has unexpectedly raised sale prices.
Official information sources say that CP Vietnam has a chartered capital of US$58.4 million, in which Thai CP Foods holds 29.18% of stakes and Hong Kong's CP Porkphand holds 70.82%.
According to Nguyen Van Phong, Director of the Audit Office of Japan in Vietnam, CP Vietnam is one of the biggest enterprises in the country's agriculture production.
The managing director of CP Vietnam, Sooksunt Jiumjaiswanglerg, said that the company will venture into food processing and the production of instant food products in the future. CP Vietnam plans to progress with the establishment of a clean food distribution chain.
The managing director said the company has set up over 3,000 retail points in Vietnam, out of the 10,000 planned.
