Sunday, September 23 2018


Price disparity due to distribution

Update: July, 05/2012 - 10:28


A customer at Hom Market in Ha Noi. Substantial price differences for pig, chicken and tra fish at different locations are due to a convoluted distribution system. — VNS Photo Doan Tung
HCM CITY — Wildly differing prices for pig, chicken and tra fish products are being charged because of many intermediate levels involved in the distribution system, according to reports in Tuoi Tre newspaper.

Phan Van Tho, for example, of Dong Nai Province's Vinh Cuu District recently sold 2,000 industrially raised chicken to a HCM City-based slaughterhouse at VND25,000 a kilo.

After slaughtering, the chicken price was quoted at VND39,000 a kilo, excluding internal organs and feet.

Phuong, an owner of a slaughterhouse in HCM City said that he and other slaughterhouses were earning a profit of VND6,000-VND7,000 a kilo.

Slaughterhouses sell the chicken to wholesale distributors, supermarkets and markets.

Wholesale distributors then sell the products to retailers, who further increase the price by another VND5,000-6,000 a kilo, Phuong said.

He said that the retail price for a kilo of chicken should have been about VND37,000 a kilo if everyone had charged a "reasonable price".

But chicken was selling for more than VND45,000 a kilo at markets in the city, and at a higher prices at smaller markets.

The same phenomenon has been occurring with tra fish prices.

In recent weeks, the price of tra fish has fallen because seafood-processing companies have lacked capital to buy the fish.

Traders bought tra fish directly at ponds for VND17,000-18,000 a kilo and then sold to wholesalers at the Binh Dien market, for example, for VND20,000-28,000 a kilo, depending on the size.

Wholesalers at Binh Dien market then sold the fish for VND21,000-32,000 a kilo to retailers who priced the fish for consumers at VND28,000-38,000 a kilo.

Tran Quang Trung, owner of a pig farm in Dong Nai Province, said he and others had incurred big losses because live pig prices had fallen to only VND38,000-40,000 a kilo, much lower compared to production costs of VND47,000-48,000 a kilo.

However, pork retail prices in the market remained high at more than VND70,000 a kilo.

Nguyen Van Ngoc, owner of a chicken farm in Dong Nai Province, said that farmers were selling their products at a low price and consumers were paying high prices.

Agricultural experts said the price disparity was caused by the poor farm-produce distribution system, causing disadvantages for both producers and consumers.

Diep Kinh Tan, deputy minister of Agriculture and Rural Development, said that prices of some kind of farm produce had increased by 100 per cent from farm to market due to the country's inappropriate distribution system.

He said that relevant ministries should develop measures to remedy the situation. — VNS

Send Us Your Comments:

See also: