April 1, 2011

Soaring feed costs put off Vietnamese pig producers

Vietnam's farmers are discouraged from livestock breeding due to soaring feed prices, interest rates and risk of diseases despite a strong gain of prices for live pigs.

The price for live pigs has reached a high of VND50,000-VND52,000 (US$2.39-$2.49) per kilo, but the owner of a large breeding farm in southern province of Dong Nai said even this increase has not kept pace with the surge in animal feed prices.

The price of animal feed has increased three times this year, with increments of VND100-VND250 (US$0.0048-$0.012) per kilo. Last year, the price rose 14 times.

Animal feed producers have blamed the price hike on high interest rates and costs, especially of imported additives.

The Vietnam Animal Feed Association the country imports 55-60% of the raw materials used in animal feed production, like rice bran, corn, soy and powdered fish were imported.

High interest rates on bank loans, an increase in transportation costs and the national currency devaluation had also pushed up animal feed prices in the domestic market, said Pham Duc Binh, general director of the Thanh Binh Joint Stock Co., a big producer in Dong Nai province.

Meanwhile, animal breeders had been facing high risk of epidemics, said Van Duc Muoi, general director of Vissan, a major meat processor.

Blue ear disease last year inflicted huge losses on pig breeders, forcing many to sell their farms to settle their debt, he said.

Measures taken to prevent and control diseases in pigs were lagging behind the actual situation as epidemics developed more seriously, said Tran Quang Trung, who owns a pig breeding farm in Dong Nai province.