May 22, 2023

Vietnamese poultry organisation urges government action to save industry from bankruptcy and smuggling risks

The Vietnam Poultry Association (VIPA) has submitted a petition to the Vietnamese government, warning that plummeting prices, coupled with rising input costs, have pushed many poultry producers to the brink of bankruptcy, VN Express reported.

VIPA said these issues, plus the inconsistent demand on the poultry industry has resulted in numerous chicken and duck farms have been forced to reduce production or cease operations altogether.

Adding to the challenges faced by domestic poultry firms is the issue of poultry smuggling. Foreign commercial farms, which dispose of chickens due to production limits, are flooding the Vietnamese borders with thousands of tons of discarded poultry each month. This not only exacerbates the financial pressure on local farmers but also increases the risk of viral infections.

VIPA has raised concerns about the importation of cheap poultry parts, including legs, heads, necks, and frozen chickens, from countries where there is an excess supply. The association warns that this influx of low-cost products could jeopardize the health of Vietnamese consumers. They have called on the government to impose restrictions on such imports and intensify efforts to combat smuggling.

Over the past five years, chicken imports have been on the rise, accounting for 20-25% of the poultry supply, according to the customs department. VIPA said there is a need for immediate action to protect the domestic industry.

VIPA also urged the government to reduce quarantine fees by 50%. They also recommend providing incentives for investment in the poultry sector, such as favourable land rental terms and easier access to bank credit.

-      VN Express