Vietnam farmers sell cows on weak milk prices

Dairy farmers in the southern region of Vietnam were forced to sell their herds due to high production costs and low milk prices.

Farmers selling their cows have lost their source of income, but they said they had no other choice as their capital runs dry.

Previously, only old cows or cows with low productivity were sold, but now even highly-productive cows were sold. A good cow used to sell for VND27-29 million (US$1,462-US$1,570), but their value has depreciated to only VND20 million (US$1,083). If a cow is sold to a slaughterhouse, the farmer will receive only VND15-17 million (US$812-US$921).

Dairying was once a good business in the south of Vietnam, but the situation has changed. Farmers are in a sticky position whereby they do not want to sell their herd but they cannot afford to keep the cows either.

A farmer has to spend VND700,000 (US$38) per day for a herd of 10 milk cows, but milk prices have been staying low at VND6,400-VND6,800 (US$0.35-US$0.37) per kg, which translates to a serious loss.

Nguyen Van Tui from the HCM City Farmers' Association said the association has called on dairy producers many times to raise milk prices in order to ensure profits, but the situation has not improved.

In theory, farmers can sell high quality fresh milk at up to VND7,500-VND7,700 (US$0.4-US$0.42) per kg, but most farmers are unable to sell at that price as producers only purchase milk at low prices.