Increasing the price of eggs and meat, foreign goods bear 3 times the cost

Information about market price fluctuations, Deputy Director of Ho Chi Minh City Department of Industry and Trade – Mr. Nguyen Nguyen Phuong – said that by the end of March, businesses will expire their commitment to keep prices stable. Therefore, businesses will adjust prices in early April.

April is also the time when Ho Chi Minh City implements a new market stabilization program for 2022. The Department of Finance is responsible for price adjustment. Accordingly, the state management agency organizes for enterprises to register to participate in the market stabilization program, register goods and register new prices.

Recorded from the City’s Department of Finance, businesses mainly proposed to increase prices of livestock meat, poultry, and poultry eggs. Specifically, cattle meat increased by 2-3%; poultry meat increased by 6-12%; poultry eggs increased by 6-8%.

Businesses in Ho Chi Minh City have proposed to increase the price of eggs and meat (photo: Tran Chung)

The Department of Finance today (March 29) and other departments and sectors will meet with businesses to agree on a stable price. According to the plan, the price adjustment mechanism of enterprises participating in market stabilization was announced in early April.

As for the export of goods, Ms. Ly Kim Chi, Chairman of the Food and Food Association of Ho Chi Minh City (FFA), informed that the cost of production materials and logistics service fees are increasing. These are the two main issues affecting the receipt of new export orders of enterprises.

In fact, the price of products exported by air to markets such as the EU, the US, etc. averaged 11.5 USD/kg. In which, if the price of fruit is 2.5-3 USD/kg, it will take up to 8.5-9 USD as shipping cost. Thus, transportation costs account for 70-80% of product costs. Every time the transportation costs increase, the price of exported fruits also increases, making it more difficult to conquer the export market because of reduced competitiveness.

Shipping costs by sea and land are equally expensive. Worth mentioning, this cost has recently increased very high due to the impact of gasoline prices. Previously, each container with a weight of 12-15 tons had a total transportation cost of 2,400-4,000 USD, now it has increased to 11,000-2,000 USD, equivalent to a 3-fold increase.

According to Ms. Chi, not only increased freight and fees, but it was also very difficult to place empty containers and seats on ships. At times, businesses that want to bring goods on board have to make reservations up to several months in advance. Besides transportation, the prices of raw materials and accessories – both domestic and imported – increased by 15-40% compared to before the epidemic. Other imported materials for processing or packaging also increased by more than 30% compared to before.

High production costs, long shipping times make both exporters and overseas distribution partners fall into a passive position due to the shortened shelf life of food products and high product prices. .

“Costs are eroding profits, but it is difficult to adjust the selling price to increase accordingly because most of the orders have been signed in advance, businesses still have to maintain competitiveness to keep customers and create jobs for employees.” The FFA President said.

Tran Chung