Frozen meat imports flood Vietnamese market

 

 

Vietnamese frozen meat imports have increased in the first four months of 2010 and reoccupied the market, despite high taxes and measures to tighten quality control.

 

According to the Department of Animal Health, meat imports arriving at Ho Chi Minh City (HCMC) ports have expanded rapidly since the beginning of the year. The imports are mainly frozen chicken legs and wings, with an estimated total of some 7000 tons of chicken imported in April alone. The imports are nearly equal to the volume of chicken produced domestically. HCMC daily consumes 200 tonnes of poultry, including 100 tonnes of frozen imports. 

 

Nguyen Thanh Phuong, Husbandry Director of Emivest, observed that the chicken market in the south is controlled by three foreign-invested companies CP, Japfa and Emivest, which market 10,000 tonnes each month.

 

Currently, the wholesale prices of frozen imports at Binh Dien Market are VND28,000 per kilo/legs and VND57,000 per kilo/wings. CP Company sells chicken wings at VNDs60,000 per kilo.

 

The main markets for frozen imports are in remote provinces, where animal husbandry has not developed. Pham Van Minh, Director of Phu An Sinh Company, reported that domestic companies do not sell meat in such rural areas due to high storage and packaging fees for fresh meat. Frozen imports are easier to ship to the provinces.

 

A trader added that consumption in the central region has increased dramatically and these sales are their main source of income.

 

Since October 2008, the Ministry of Finance raised tariffs on imported meat in an effort to restrict these goods. The import tariff on fresh poultry meat and frozen meat has been raised from 12% to 40%, while poultry legs and wings are charged 20%.

 

However, according to Lam Bong from Intimex HCMC distributors, even though tax and quality control has expanded, enterprises still import meat, because the prices are much lower.

 

Currently, Intimex is selling frozen chicken legs at VND23,000 per kilo. In the first quarter of 2010, US chicken legs were US$850 per tonne, making the cost with tax and other expenses at VND22,000-22,500 per kilo.

 

After the Ministry of Health and the Ministry of Agriculture and Rural Development tightened controls, meat imports in late 2009 decreased by 70-80% compared to the same period of 2008. Now, import companies are accustomed to examination procedures and have resumed imports to attain better profits.