Outcry over Vietnam's decision to increase feed import tariff

 

 

Agricultural officials and farmers in Vietnam have criticised a decision to increase import tariffs on raw materials for animal feed from next month.

 

Tariffs on products such as corn, soy and powdered fish will rise between 5-15%, as the government aims to reduce Vietnam's reliance on imports while encouraging local production.

 

But Vietnam Animal Feed Association's chairman Le Ba Lich said the rise in costs would cause the prices of food and other products to increase.

 

Calling the decision ''unreasonable and unacceptable'', Lich said farmers will be the first victims of the price hike and they should have been consulted before the decision was made.

 

Current feed prices have increased between 10-15% from last year, and farmers are concerned that the hike will wipe out their profits. There are also concerns that a 5% tariff increase will become at least 10% when the products are delivered to the farms. The cost of feed materials had been rising due to the upcoming Tet holiday, with soy and corn rising between VND1,000-VND1,500 (US$0.05-US$0.08) per kg since last month, said farmers.

 

Lich said there could be another price hike in early 2010 as animal feed plants would be forced to increase prices or face the risk of bankruptcy.

 

He added that the association would propose reducing import tariffs to zero to assure minimal to no impact on farmers.