Gov’t discusses reducing feed price

Breeders and seafood processing companies in Vietnam are suffering from high feed prices while world prices have been reduced by half since peak prices last July.

Producing food for pigs in An Phu Co., HCM City (Photo: SGGP)

The Ministry of Agriculture and Rural Development organized a meeting March 10 in Hanoi to discuss solutions to reduce the price of seafood and feed to help breeders.

Vietnam Feed Association and Department of Animal Health earlier called on importers to reduce the feed price and share difficulties with breeders.

However, after four months, feed prices have been reduced by only 10 to 15 percent while the Association calculates that a reasonable reduction ought to be 25 to 40 percent.

Nguyen Huu Dung, deputy chairman of Vietnam Association of Seafood Exporters and Producers, suggested the Ministry of Agriculture and Rural Development hold a meeting so that breeders and seafood processing businesses can meet and have a dialogue with feed importers.

“In my opinion, the most important thing now for breeders and seafood processing businesses is not how much they sell but how much profit they get. For example, if feed price is reduced to an acceptable level, Tra fish breeders can ensure their profits even if a kilogram of Tra fish just sells for VND15,500 - 16,000,” Mr Dung said.

Feed processers import materials themselves

Seafood quality is still poor

The Ministry of Agriculture and Rural Development and other authorized organizations should not only ask businesses to reduce feed price but also tighten quality management of feed, Nguyen Huu Dung, deputy chairman of the Vietnam Association of Seafood Exporters and Producers, said.

At present, although parameters and norms in the feed package meet requirements and businesses sell at high prices, the quality of feed is very poor.

If the government asks businesses to reduce the price of feed without quality demands, quality may be further lowered. Low quality seafood will affect the growth cycle of Tra and Basa fish.

If feed importers do not reduce the price, the state should permit seafood and food processing enterprises to import materials themselves to produce feed, while reducing import tax to assist the breeders, Mr Dung suggested.

The Minister of Agriculture and Rural Development, Cao Duc Phat, agreed with Mr Dung.

Mr Phat said that his ministry had assigned the Livestock-Breeding Department and Department of Aquaculture to investigate why feed prices in Vietnam are higher than neighboring countries and why businesses do not import cheap materials to lower domestic feed prices.

At present, the output and quality of domestic feed is still poor, with feed processing dependent on foreign countries, with 70 percent of materials imported.

Mr Phat said that the Government can not able to use administrative orders to ask businesses to reduce feed price, however, the state could adjust feed prices by financial mechanisms and policies.

Businesses and associations can propose solutions so that relevant authorities can adjust feed prices in a timely fashion. 

By Van Phuc Hau - Translated by H.Mien

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