Vietnamese cow farmers squeezed by rising feed prices

Small-scale milch cow farmers are losing profits due to higher costs for animal feed and low prices offered by milk processing companies, according to many farmers.

 

Fees for animal feed account for at least 60% of total expenses, farmers have said.

 

Vinamilk and Friesland - Campina Vietnam, the two biggest milk processors in Vietnam, said that farmers' bankruptcies had been caused by the price of raw materials like animal feed and not by low prices offered by processing companies.

 

Nguyen Van Tui, deputy head of Ho Chi Minh City Farmer Association's Economy - Society Department, said the price of some animal feed had risen from 70% to 133%.

 

For example, rice straw now costs VND750 (US$0.04) per kilogramme, up from VND400 (US$0.02). Brewer's grains rose to VND1,050 (US$0.06) a kg from VND450 (US$0.02) a kg five months ago, according to Tui.

 

Last December, farmers spent VND5,600-6,300 (US$0.30-$0.33) to produce a kg of fresh milk, which sold for VND6,500-7,200 (US$0.34-$0.38).

 

Currently, the costs have risen from 28% to 80%, depending on the kind of animal feed. To produce a kg of fresh milk, milch cow breeders have to spend at least VND8,000 (US$0.42).

 

He said small-scale breeders were suffering losses of VND800 (US$0.04) for each kg of fresh milk produced.

 

As of April 30, the city has 72,850 milch cows raised by 8,876 households, with 36,267 cows giving milk.

 

About 111 households in Cu Chi District's Tan Thanh Dong Commune, the locality with the most milch cows in the city, have quit breeding milch cows, a loss of 4,265 cows citywide.