Logo of Phnom Penh Post newspaper Phnom Penh Post - ASF could bankrupt VN livestock sector

ASF could bankrupt VN livestock sector

Content image - Phnom Penh Post
African swine fever will cause demand for animal feed in Vietnam to decrease to 23.7 million tonnes this year. HOANG DINH NAM/AFP

ASF could bankrupt VN livestock sector

African swine fever has not only caused Vietnam’s livestock farming households to fall into debt, but has also made it difficult for animal feed dealers to collect their payments.

If the epidemic continues, the domino effect could bankrupt the country’s livestock industry.

Since the spread of African swine fever in Vietnam, a number of shops selling animal feed have been put in a bind because they have to sell animal feed to farmers on credit, while paying the manufacturers on receipt of the grains.

Pham Van Luong, a feed salesman in Nam Dinh province’s Hai Hau district, said his family previously sold an average of 20 tonnes of rice bran per month. However, since the outbreak of African swine fever, over the past three months they have managed to sell just five to six tonnes of animal feed per month.

“I sell rice bran to farmers and they often pay later. However, for some months now, pigs have been infected and culled, so farmers do not have money to pay me. Currently, I am owed nearly two billion dong ($85,836),” Luong told vneconomy.vn.

An animal feed manufacturer in the northern province of Hai Duong, PP Sun Vietnam Joint Stock Company, revealed sales had declined from an average of 2,000 tonnes per month to some 1,200-1,400 tonnes. Although the company has lowered the selling price by 5,000-10,000 dong per bag to stimulate demand, the situation has not improved. Therefore, the company has had to cut production, said the firm’s director, Dao Van Bac.

According to Vinafeed Group vice-director-general Tran Trong Quang, over the past three months, the company’s feed consumption has decreased by about 30 per cent compared to January, from 16,000 tonnes per month to 11,000 tonnes. Vinafeed’s product prices have decreased by seven to eight per cent compared to January this year.

Quang worries that animal feed enterprises will fail if the epidemic continues.

“Many livestock households are selling uninfected pigs at any price, and are even selling sows. Therefore, the domino effect could bankrupt the system of breeders, breeding animal providers and rice bran distribution agents even after the epidemic ends,” he added.

Animal feed sector

Vietnam Animal Feed Association (Vafa) vice-chairman Pham Duc Binh said the production of animal feed has decreased by at least 30 per cent.

In addition to farmers selling off all their pigs, it is also uncertain how the disease is spread. This is causing concern in other areas of the market.

A report from the US Department of Agriculture (USDA) recently stated that African swine fever will drive down demand for animal feed in Vietnam from 23.8 million tonnes last year to 23.7 million tonnes this year and 23.5 million tonnes next year.

According to statistics from the General Department of Vietnam Customs, in the first five months of this year, Vietnam spent over $1.61 billion importing raw materials for animal feed production, a year-on-year increase of 0.3 per cent.

Main markets exporting livestock feed and raw materials for Vietnam include Argentina, the US, Brazil and China.

Vafa recommends that feed production and trading enterprises should share difficulties with farmers, minimise production costs to reduce product prices and maintain competitiveness.

Each enterprise also needs to diversify products such as chicken bran, duck bran and seafood bran to meet the diverse needs of the market, to improve production and business efficiency. VIET NAM NEWS

MOST VIEWED

  • Over 100 Chinese nationals to be deported for online scam

    The Ministry of Interior is planning to deport 128 Chinese nationals after they were arrested in Preah Sihanouk province on Wednesday for their alleged involvement in an online money extortion scam. Y Sokhy, the head of the Department of Counter-terrorism and Transnational Crime, told The Post

  • LPG gas explosion injures 13 people, including foreigners, in Siem Reap

    An explosion on Wednesday at a liquid petroleum gas (LPG) car and tuk-tuk refuelling station in Siem Reap city has left 13 people, including an American and a Briton, suffering burns. The seven most severely burned, including a provincial police officer, were sent to a Thai

  • The French mother navigating the capital in her own personal tuk-tuk

    French woman Cecile Dahome gracefully manoeuvres her tuk-tuk through the manic streets of Phnom Penh with the precision of a Japanese katana before a herd of motorcyclists, attempting to perform illegal U-turns, cuts her off. The riders, like baby ducklings following their mother’s tracks,

  • More than 800 people test positive for HIV in 2018

    The National Aids Authority (NAA) said more than 800 people tested positive for human immunodeficiency virus (HIV) last year, joining over 76,000 others aged between 15 and 49 in the Kingdom already infected with the virus. The spread of HIV/AIDS in the Kingdom is showing few signs of