November 16, 2005

Vietnam's poultry feed producers suffer bird flu losses

Vietnam's poultry feed producers have suffered losses due to bird flu, but no official statistics of the losses have been released so far, the chairman of the Vietnam Animal Feed Producers' Association (VAFPA), Le Ba Lich said.

Lich had organised many meetings to deal with difficulties faced by over 100 member businesses over the past two months. Reducing production was advised to avoid excess stock.

In 2004, the country's feed producers suffered heavy losses as huge quantities of poultry feed were being destroyed by mould, Lich said. VAFPA had requested for banks to freeze debts and extend deadlines for poultry feed producers. The association also sought official exemption of import tax on certain raw materials for poultry feed producers.

However, Lich added that only poultry farms were partly subsidised based on the number of birds they reared, while poultry feed producers had to fully bear their losses. He said this year's losses were expected to be smaller as poultry feed producers were more prepared.

Meanwhile, An Phu Animal Feed Enterprises said poultry feed sales in southern Vietnam have plummeted by nearly 90 percent. The company said it would not be badly hit during a bird flu epidemic, as it has only produced poultry feed under customers' orders.

Thailand's CP Animal Feed Group said its production of poultry feed was decreasing, and feed output in recent weeks have been less than 30 to 40 percent of the level before the renewed outbreaks. However, the company had managed to reduce its losses by only producing poultry feed under customers' orders as well, and would fully turn to cattle feed production soon. But fierce competition was also expected in the cattle feed market as many poultry feed producers have reportedly done likewise.