In Summary: Vietnam’s Deputy Minister of Agriculture and Rural Development Phung Duc Tien confirmed pro-poultry solidarity at a conference set to assess the current situation of livestock production and propose solutions to Vietnamese poultry production in the current situation.

5 dark areas that make poultry farming suffer

On April 27, the Department of Livestock Production coordinated with the Vietnam Agriculture Newspaper to organize a conference to assess the current situation of livestock production and propose solutions to poultry production in the analyzed situation. The conference was chaired by Deputy Minister of Agriculture and Rural Development, Phung Duc Tien, Director of the Department of Livestock Production, Duong Tat Thang and Editor-in-Chief of Vietnam Agriculture Newspaper, Nguyen Ngoc Thach with the participation of hundreds of delegates from the business community, industry associations, cooperatives and agencies, the Government Office, VCCI…e.t.c.

According to a report at the conference, Vietnam is one of the countries with the largest total poultry population in the world, and the second largest hub of waterfowls in the world. In the period from 2018 to 2022, the poultry herd increased rapidly from 435.9 million heads to 557.3 million heads. The average growth rate is 6.3%/year. By the end of 2022, the country’s total chicken population is more than 453.2 million, and waterfowl is nearly 104 million.

In the first quarter of 2023, poultry production across the country developed stably. Poultry flock is estimated at 551.4 million heads, up 2.4%. Poultry meat production was estimated at 563.2 thousand tons, up 4.2%. Eggs are estimated at 4.7 billion eggs, up 4.5% over the same period in 2022.

In recent years, livestock farms have linked to support each other in the production process such as: support for production capital and buying inputs in bulk and cheaply. This also includes linking livestock production with slaughter, processing and consumption to form a product chain and this has reduced product costs and made breeding more effective.

Despite many achievements, poultry production has faced many difficulties and challenges in recent years, especially the problem that the selling price of the product is currently lower than the cost. According to a representative of the Department of Livestock Production, the reason is due to high input materials and large production capacity. Meanwhile, in 2022, Vietnam imported nearly 34 million breeding birds, leading to a rapid increase in poultry flocks per head and consumption is limited.

Nguyen Thanh Son, Chairman of the Vietnam Poultry Breeding Association (VIPA), said that the poultry industry currently has five dark areas that directly threaten farmers. That is, the profit margin of poultry production is decreasing, the past two years have suffered a heavy loss and the selling price is lower than the cost. Fourthly, the epidemic is still unresolved and the import growth of frozen chicken products increased many times compared to domestic production. On top of this, domestic enterprises are inferior to FDI enterprise and thus small-scale farmers are increasingly disadvantaged and are excluded from the “game.” The precarious market and difficult consumption led many localities to reduce the scale of breeding by 50%: never before did the broiler have to become a laying hen.

Mr. Son analyzed that poultry production is currently facing great risks and is being sacrificed for the development of the industry. In the past five years, poultry production has grown by more than 17% in the number of heads, more than 8.7% in meat output, and 6-7% in eggs, but the profit margin is decreasing.

Specifically, the selling price of poultry usually loses about 6,000-7,000 VND/kg. There are a number of key factors, including the problem of massive import of poultry meat (estimated by 2022, about 220,000 tons and from the beginning of 2023 to now about 52,000 tons, excluding smuggled imports).

In addition to the fact that large enterprises expand their livestock production in Vietnam, especially FDI enterprises, the total supply is too large compared to the total demand, causing prices to drop sharply. Not only are the farmers suffering losses, but many domestic livestock enterprises are at risk of having to stop livestock production due to lack of capital, the banks tightening debts…e.t.c.

Sharing the same view with VIPA, businesses and poultry farmers simultaneously called on the Ministry of Agriculture and Rural Development to submit to the Government for promulgation solutions to support the poultry industry to overcome the current tragic period.

Mr. Pham Van Luong, Director of Luong Hue Poultry Breeding Joint Stock Company, said that the business community and poultry farmers who’ve been trying to survive until today have shown a great effort. Because raising a chicken today, in addition to the lower selling price, brings with it a lot of problems. Banks turned away from lending or borrowing with high interest rates, quarantine fees, testing fees, shipping and processing fees, etc., all added up.

“We transport a shipment of about 10-15kg subject at a quarantine fee of 100,000 VND, while large enterprises transporting a container or a cargo ship also have to pay the same fee.This is greatly affecting the development of the market.  Adding to the quarantine fee for the day, a chicken imported for slaughter costs 200 VND, and in a year one loses 72,000 VND, if you include investment costs, bank interest and the testing fee of 200-300 thousand VND, for each continuous sample every day. It’s impossible to live for months,” Mr. Luong complained.

Immediately after Mr. Luong’s comments, Mr. Nguyen Van Long, Director of the Department of Animal Health, said that this issue is still inadequately addressed.

Department of Animal Health will have suggestions and recommendations for amendment

There is the proposal for the Ministry of Public Security to deal with the problem of discarded chickens.

Facing difficulties in the livestock industry in general and the poultry industry in particular, VIPA and the business community proposed that the Ministry of Agriculture and Rural Development submit to the Government to review existing policies. The aim is to provide practical, timely and effective support that will be easier to implement by farmers and businesses.

Specifically, it is recommended that the Government and the National Assembly consider adjusting support to a higher level for agricultural enterprises. Specifically speaking, enterprises in the agricultural production sector currently enjoy a reduced support level of 35-40%. On the other hand, enterprises producing livestock, animal feed and veterinary medicine are entitled to a reduction of 45-50% of corporate income tax so that these enterprises with capital can maintain production.

There is thus a proposal for the Ministry of Agriculture and Rural Development to review the poultry development strategy in the medium and long term scopes. Accordingly, the development orientation should harmonize the development of quantity and quality, and lend importance to improving quality and production efficiency rather than overreaching in the quantity parameter. At the same time, it is necessary to limit the increase in the number and size of farms in some areas and ecological regions with high livestock density.

It is recommended that ministries, sectors and localities carefully consider new investment projects, especially investment projects in the field of local pork and poultry production. There is also a need for building strong enough technical barriers to imported meat, in order to create a healthy competitive environment for domestically produced products.

There is also an urge for close inspection and supervision of livestock products temporarily imported for re-export. In fact, there are many products used as animal feed such as legs, heads, necks, wings, gizzards of cattle, poultry, and even livestock products containing banned substances…but which are still being smuggled into the market. In the Vietnamese market, if this situation is not controlled, domestic production will be extremely unstable.

In addition, it is necessary to strengthen control, focus on preventing, detecting and strictly handling cases of illegal transportation of animals and animal products across the border, including discarded laying hens, by creating border corridors. This will safeguard and prevent disease from re-emergence and put pressure on the domestic market.

Along with that, the delegates to the conference also suggested that the Ministry of Agriculture and Rural Development clearly orient the issues of strategy, planning, and market. Ms. Chu Thi Hong Thuy, Deputy General Director of TaFa Viet Livestock Co., Ltd. suggested : Competition between high quality poultry products and products of unknown origin is still mixed. TaFa Viet has received many export orders, but it is not clear what the regulations and procedures are.

In addition, the business community and VIPA proposed to tighten the breeding issue. In the past time, there has also been a phenomenon of confusion about the breed: “people who breed in-house”, cause risks for large breeders.

It is necessary to control and cut unnecessary administrative procedures and costs in the animal feed production chain, in order to reduce production costs and avoid losing opportunities in production and business for enterprises.

The Ministry of Agriculture and Rural Development is committed to accompany you  “night and early evening” to overcome difficulties

Concluding at the conference, Deputy Minister of Agriculture and Rural Development Phung Duc Tien voiced the great difficulties of poultry production today and asked the Department of Livestock Production to coordinate with the Government Office to soon issue a decision to support animal husbandry. This in addition to mechanisms to support breeding, animal feed, and lower production costs so as to reduce pressure on small businesses and households..

According to the Deputy Minister, in the context of the surrounding difficulties, poultry production needs to improve its competitiveness in the commodity industry, and promote internal resources to endure and develop. In fact, in terms of internal resources, it must be recognized that the productivity of poultry breeds in Vietnam is still low when competing with advanced countries in the world. With the signed trade agreements, the poultry industry needs to adapt and integrate, and so this is the advantage to develop.

“There are three issues that need to be solved, which are seed, animal feed and land. The Ministry of Agriculture and Rural Development will always accompany you night and early evening to solve these problems together, “said Deputy Minister Tien.

According to the Deputy Minister, the difficulty is a common one, suggesting that FDI enterprises, the poultry and livestock business community, cooperatives and  farmers unite and accompany the Ministry of Agriculture and Rural Development to promote the livestock industry and overcome challenges.

Source: Nongnghiep.vn