Tuesday, June 28 2022


Farmed chicken price falls, as problems come home to roost

Update: August, 21/2018 - 07:00
A chicken production line of CP Việt Nam Corporation in Phú Nghĩa Industrial Park in Hà Nội. — VNS Photo Vũ Sinh
Viet Nam News

HÀ NỘI — The price of industrially-farmed chicken in Việt Nam’s southern region has dropped as businesses imported too many chicken products from foreign countries.

This month witnessed a drop in domestic chicken prices of more than VNĐ10,000 (US$0.4) compared with the previous month, touching VNĐ20-22,000 per kilo of white-feather chicken and by VNĐ9-12,000 to VNĐ25-26,000 per kilo of coloured-feather chicken.

According to Deputy Chairman of the Animal Livestock Associations in the southeast region Nguyễn Văn Ngọc, the price of rice bran has risen continuously, partly causing chicken farmers to lose VNĐ2-4,000 per kilo of chicken.

“The main reason is that too many imported chicken products have been shipped to Việt Nam, especially the kind of tough chicken (at about VNĐ25,000 per kilo), causing a rapid increase in supply. Domestic chicken failed to compete and so its price has dropped,” said Ngọc.

Statistics from the General Department of Việt Nam Customs (CGD) showed that the country imported more than 105,000 tonnes of chicken meat in the first seven months of this year, equivalent to 85 per cent of last year.

Deputy head of CGD’s Import and Export Department Lê Mạnh Hùng told Vietnam Television that in tax calculation, there were many factors adding to the taxable price, but many enterprises may not have fully declared such figures, intending to hide or neglecting to inform the CGD.

“We have adjusted the tax rate after checking. There are quite a lot of cases adjusted to 30 per cent compared with the businesses’ previously declared price,” Hùng said, “However, this is not the main factor causing the imported chicken price to be cheaper than the domestic one.”

Hùng said the imported chicken meat was mainly chicken wings and thighs, parts which were popular among Vietnamese consumers. Meanwhile, foreigners prefer to eat chicken breast, so they sell chicken wings and thighs at cheaper prices.

In addition, Hùng said imported chicken products were cheaper because the foreign countries often raise chicken on large-scale farms with thousands of chickens. “The farms use modern automation and labour is minimal while they are proactive in food and veterinary medicine. Therefore, the price of their chicken is cheaper than that of Việt Nam.”

In 2017, the country imported 122,714 tonnes of chicken of all kinds with total value of VNĐ111.6 million. — VNS

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