August 12, 2008

Meat shortage looms in Vietnam

Vietnam may have to import poultry, pork and beef by the end of this year if the animal breeding and feed processing sectors fail to address problems soon, Le Ba Lich, chairman of the Vietnam Animal Feed Association warned.

Poultry and livestock farmers have recently been forced out of business due to high production costs. The current price of pig feed is VND8,500 (US$0.5) per kilogramme. To produce one kg of pork, 2.6 kg of feed are needed, costing VND22,100 (US$1.3).

Meanwhile, a kg of live pig goes for VND32,000-34,000 (US$1.9-US$2) in the south and VND28,000-30,000 (US$1.7-US$1.8) in the north.

Lich pointed out that the capital used to purchase breeding animals and animal feed, which comes from loans with 20 percent interest, have jumped beyond breeders' affordability.

On top of farmers driven out of business, blue ear disease and bird flu also crippled production, worsening supply.

Pork accounts for 80 percent of Vietnam's meat consumption, chicken 11-12 percent and beef 3-4 percent.

To counter the looming meat shortage, Lich said the association plans to invest in production and imports of raw materials for animal feed production.

The association requested that banks lower interest rates on loans, the Ministry of Finance to eliminate the value added tax (VAT) for raw produce, the Ministry of Industry and Trade to re-organise distribution systems.