The price of animal feed increased sharply, the more you raised, the more you lost

Animal feed prices increased 11 times in a row

That is the share of Mr. Nguyen Cong Bac, owner of a large-scale pig farm in Son La, after hearing the news price of animal feed increased from April 1.

Mr. Bac confided that he has been raising pigs for many years but has never been cornered in such a difficult situation as now. The price of animal feed has so far increased 11 times in a row. From the end of February to the beginning of this April, bran price adjusted up 3 times. Accordingly, about half a month, enterprises providing animal feed (feed) report price increases once.

The cumulative increase on this occasion has reached more than 1,000 VND/kg. On average, a pig eats 1.7-1.8 kg of bran/day, which means that his whole pig farm consumes 20-25 tons of bran/day. If only calculating the price increase on this occasion, a month he loses another 600-750 million VND. The cost of raising such pigs increased significantly.

The price of animal feed is adjusted to increase for the 11th time

But sadly, the price of pigs is not only in a downward trend but also somewhat sluggish and difficult to sell. “A week ago, I sold live pigs for 53,000 VND/kg and suffered a loss. Now the price of pigs has decreased to 50,000-51,000 VND/kg, I lost 5,000 VND/kg of live pigs when I get out of the barn,” said Mr. Bac sadly.

According to Mr. Bac’s calculation, the price of live pork decreased, the price tended to increase, so for every 1 pig sold, he suffered a loss of about 600,000 VND. This is the loss when his farm is self-sufficient. As for the raising households that have to buy the whole pig breed, they will incur a loss of 1 million dong/pig on this occasion when they are released from the barn.

In Thong Nhat district (Dong Nai), Mr. Nguyen Van Tung felt exhausted because the more he raised, the more he lost.

“Every month, I release about 600 commercial pigs. With the current price of bran increasing, I suffered a loss of nearly 500 million dong,” he lamented.

Report of PV. VietNamNet, in the last days of March, many businesses continue to announce that feed prices will increase and take effect from April 1.

Specifically, Japfa Comfeed Vietnam in the South region announced to increase the price of all feed products by 400 VND/kg. Cj Vina Agri and MNS Feed Joint Stock Company (Proconco and Anco systems) also adjusted the price to increase from 300-400 VND/kg depending on the type.

Similarly, GreenFeed Vietnam announced a price increase for all feed products for cattle, poultry and cows, an increase of 300-400 VND/kg. The price increase applies to customers of BU Long An… Viet Trung Feed Co., Ltd also announced to increase the price of concentrated feed products by 500 VND/kg, mixed feed products by 400 VND/kg.

CP Vietnam also announced that from April 4, it will adjust the selling price of fish farming products with an increase of 400 VND/kg for many feed labels.

The reason for raising the price of feed products given by businesses is due to the increase in production materials over time.

Worth mentioning, on the occasion of mid-March, businesses simultaneously adjusted the price of feed 300-400 VND/kg depending on the type. There are even products that are adjusted to increase by 3,000-4,000 VND/kg.

If counting from the end of 2020 until now, this price adjustment right at the beginning of April has been the 11th consecutive price increase.

Pig farmers are gradually exhausted when the price of livestock feed increases too high.

The more you raise, the more you lose

Mr. Duong Tat Thang – Director of the Department of Livestock Production (Ministry of Agriculture and Rural Development) said that the cost of feed accounts for 65-70% of the production cost of live pigs. From 2021 up to now, the price of feed materials has continuously increased, pushing the price of finished feed to increase by 18-22%.

Therefore, although the price of piglets has dropped reasonably, from 2.6 million to 1.2 million VND/head, the increase in feed costs has caused a sharp decrease in the profit of pig farmers, some households and farms livestock production loss.

The report of the Department of Livestock Production also indicated that the reason for the continuous increase in selling prices was the sharp increase in raw materials due to the impact of the Covid-19 epidemic and recently the Russia-Ukraine tension, causing a shortage of supply.

Accordingly, in March this year, the price of corn kernels was at 10,200 VND/kg, up 29.3% over the same period last year; soybean meal 16,500 VND/kg, up 33.4%; corn residue 10,300 VND/kg, up 23.1%, wheat 9,850 VND/kg (up 49.5%). Compared to the same period in 2019, the price of some raw materials nearly doubled.

The offer price for imported materials to Vietnam for delivery after August is about 11,000 VND/kg for corn, and 17,000 VND/kg for soybean meal.

According to the Department of Livestock Production, the high level will remain and increase until the end of 2022 because Vietnam is very dependent on imported feed materials.

According to statistics, the livestock and aquaculture industry needs over 33 million tons of fine feed ingredients to serve industrial feed production in 2021, this number is forecasted to continue to increase in 2022. However, domestic supply is only 13 million tons, accounting for about 40%. About 22.3 million tons are left from imported sources, worth up to 9.07 billion USD.

Facing the skyrocketing price increase of imported feed raw materials, many solutions have been proposed, such as reducing import tax, reducing corporate income tax, etc. Even, Deputy Minister of Agriculture and Rural Development Phung Duc Tiep said. calling on feed producers to always have imported goods available before, so don’t rush to increase prices, have to share this burden with farmers.

Along with that, it is recommended to adjust the livestock structure in the direction of increasing the raising of grazing cattle, reducing the raising of pigs and poultry in order to take advantage of crop by-products, biomass corn, grass, and reduce the consumption of maize and dry crops. imported oils.

Inner peace