Ministry of Industry and Trade denies that imported chicken caused domestic chicken prices to fall

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Illustration. Source: Internet

Imports increased by 46%, price was less than VND 20.000/kg

According to the General Department of Customs, in the first nine months of the year, the country imported 215,700 tons of chicken of all kinds with a turnover of more than US$186 million, up 49% in volume and 46% in turnover over the same period in 2018.

Imported chicken included two types – whole frozen chicken and frozen chicken (HS code 020712 and HS code 020714), accounting for 98% of total of chicken meat import turnover.

The average import price of this item is US$861 / ton, equivalent to about VND19.800/kg (excluding import duties, value-added tax, cold storage).

While the import of chicken meat in the first months of the year tended to increase, the price of industrial breeding chickens was said to decline.

According to the Ministry of Industry and Trade, on October 22, the price of industrial chicken (white feathers, colored feathers) in the provinces of the Southeast region which have large poultry and cattle farms was around at 25.000 – 25.500 VND/kg, down 30% over the same period in 2018.

This is a higher price compared to the middle of September 2019 (VND 16.000 - VND 18.000/kg) – a period in which livestock farmers were rushing to cut losses and cut prices sharply. Meanwhile, in the Northern provinces, the price of industrial chicken ranges from 35.000 to 37.000 VND/kg, the price of traditional chicken is still stable, even in many places with good prices.

Chicken price is low, not massive recurrence of breeding

Recently, there is an opinion that the sharp increase in chicken imports is one of the reasons for the price of industrial chicken, especially in the Southeast region, to fall.

Talking to Customs Newspaper, Mr. Nguyen Van Ngoc, Vice Chairman of the Southeast Poultry Association, said: the price of white chicken must be at least 25.000 VND /kg or more so the breeder can achieve profit.

The price of domestic chickens was so low because suppliers increased when farmers gave up pigs to raise chickens, after African swine fever was raging in many localities. At the same time, the reason also comes from the massive import of chicken to Vietnam.

Rejecting the view, the Ministry of Industry and Trade said it can be seen that the import of chicken may have had a partial impact but it is not the main cause of negative impacts on the domestic industry, causing a drop in chicken prices in the Southeast.

The ministry said, according to the Southeastern Livestock Association, when the African swine fever spread many farmers in the Southeast region forecasted that consumers would not eat pork, so they turned to raise industrial chickens, increasing the flock spontaneously and uncontrollably.

The development of the chicken industry in this area has put pressure on households and farms to reduce prices to cut losses and recover capital. The Southeast region slaughtered up to 2.5 million chickens every week. These are the main reasons for the sharp decline in industrial chicken prices in the Southeast during August and September 2019.

Agreeing with the Ministry of Industry and Trade, the Department of Livestock Production (Ministry of Agriculture and Rural Development) said it is expected that in 2019, the volume of imported chicken will be about 150,000 tons. Competitiveness meat is about 90,000 tons of thigh meat, accounting for 10.37% of poultry meat, 13.53% compared with traditional chicken and 30.41% compared with industrial chicken.

With the expected import data mentioned above (150,000 tons of chicken imported in 2019), the number of chicken types imported into Vietnam does not affect the market share and the price of domestic chicken.

According to the Ministry of Industry and Trade from now to the end of the year, the price of industrial chicken will be low, especially in the Southeast due to abundant domestic supply.

The Ministry recommends that households and farms should consider increasing herd, avoiding spontaneous and massive breeding recurrence; key localities of chicken raising have strengthened their guidance and propaganda to households and breeding facilities in the area in order to control the situation of breeding to meet the planning, to avoid excessive supply and decreases in the selling price.

The Ministry of Industry and Trade will continue to closely monitor the price in the domestic market for essential commodities, especially imported meats, promptly take appropriate measures when there are unusual fluctuations in prices or consumption; at the same time, directing market management forces to strengthen control of transportation and circulation activities to prevent arising smuggling and trade fraud.

From the perspective of trading in agricultural products and having a good understanding of the poultry industry, talking with Customs Newspaper’s reporter Nguyen Dang Cuong, Director of Lucavi Co., Ltd said that Vietnamese do not eat a lot of industrial chicken. Imported chicken is mainly for raw materials in food processing.

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The increase in the import rate may have a certain impact on the domestic industrial chicken production output of large enterprises such as CP and Dabaco. However, small producers and chicken breeders sell to serve the demand of Vietnamese tastes won't matter much.

"The most important thing in importing chicken from the US is to ensure food hygiene and disease safety," Mr. Cuong said.