June 15, 2012

Vietnam's foodstuff prices down sharply

Nguyen Thanh Son, deputy head of Vietnam's Ministry of Agriculture and Rural Development's Department of Livestock Husbandry said that foodstuff prices have decreased sharply across the country.

Prices of live pigs fell by 17-18% from January while prices of poultry meat decreased by 20-25%, Son said. Especially, prices of eggs dropped by 40%, Son noted.

Reduced purchases from plants' canteens as well as falling import demand of China were attributed to foodstuff prices, Son said.

Due to economic difficulties, many local plants have been forced to halt production, making the number of workers to decrease sharply.

China's efforts to tighten control over quality of imported meat also affect the Vietnamese foodstuff prices, Son said.

Given foodstuff price drop, many Vietnamese animal raisers have been forced to scale down their production.

The MARD is seeking measures to help the local animal husbandry lighten difficulties, targeting to tighten control over use of banned additives, prevent animal diseases and propose the government to provide soft loans for animal raisers.

If Vietnam takes no measures, the country will face meat shortage in the second half, thus increase meat imports.