November 4, 2008
Vietnam's feed producers will cut their product prices in mid-November, leading to a 25-30-percent fall from June prices, according to Nguyen Xuan Duong, deputy director of the Livestock Breeding Department.
Feed prices remain high even though the producers have slashed prices by 7-10 percent since June, said Duong.
Livestock producers are pressurised by a combination of high feed costs and low meat prices. As a result, the Vietnam Feed Association in September has urged feed producers to cut prices to ease the financial burden on livestock producers.
However, feed producers said they are unable to do so before mid-November as they still had stock that were imported at high prices.
The domestic breeding industry is slowly recovering from a period of stagnant growth due to diseased livestock, but farmers are reluctant to invest because of high feed costs and low meat prices.
The department is trying to encourage farmers to boost their investment in order to meet the anticipated high demands of the Lunar New Year in January, Vietnam's largest festival.
The department will also ask relevant ministries to increase import duties on poultry to help increase domestic output.
Duong said the cost of raw feed materials had declined 40-45 percent in both global and domestic markets. Industry sources expect the price to keep falling through the end of the year, thanks to good harvests worldwide and a cut in transport charges.