Along with the efforts of businesses to keep prices stable, the Ho Chi Minh City Department of Industry and Trade will work with the Department of Finance to calculate solutions to stabilize the prices of eggs, chicken and duck.
The prices of pigs, chickens and eggs have recently increased quite high. Accordingly, the price of live pigs for slaughter is currently at 55,000-57,000 VND/kg, an increase of about 5,000 VND/kg compared to the beginning of the year. Similarly, the price of industrial chicken at the farm is 33,000 VND/kg, an increase of 4,000-5,000 VND/kg compared to the beginning of the year; Tam Hoang chicken price increased to 58,000 VND/kg…
Prices increase but farmers are not profitable yet
Notably, the price of eggs on the market increased sharply. The current retail price is about 3,500-3,800 VND/chicken egg, 4,000-4,200 VND/duck egg. At the livestock farms, the selling price also increased but at a lower level, about 2,700 VND/egg, a difference of up to 1,000 VND compared to the retail price.
Although the prices of eggs and meat sold at the farm and at retail have increased more or less, farmers are still not profitable and do not dare to invest in re-herd and increase herd. Mr. Chu Ngoc Lam, the owner of a farm raising more than 200,000 industrial chickens in Dong Nai province, explained that because the price of feed increased too high and fluctuated so much, farmers lost all their profits and faced many risks. And Mr. Pham Van Dung – owner of a chicken farm that lays more than 50,000 chickens in Long Khanh city, Dong Nai province – said that in order to reduce the damage caused by the high cost of animal feed, he had reduced the flock to only about 20,000 chickens to maintain the cost of living. maintain operations and keep customers.
Mr. Au Thanh Long, Vice Chairman of the Southeast Livestock Association, said that the recent increase in the price of pigs, chickens and eggs, in addition to the high price of animal feed, was also due to a shortage of supply. Up to now, the price of animal feed has increased by 30%-40% compared to the end of 2021 and will continue to increase. The increase in feed prices pushes the cost of industrial chicken raising from 25,000-26,000 VND/kg to over 30,000 VND/kg, and tamarind chicken to 50,000-53,000 VND/kg. Not to mention, the broken supply chain from some import markets also puts pressure on a significant supply shortage.
“The selling price has increased, but many breeders do not dare to re-herd. Even, they are worried that if they invest in re-herding and massively increase the herd, it will lead to excess supply, the price will turn back sharply, and farmers will be empty-handed” – Mr. Long reflected.
Stable businesses want to increase prices by 10%
Facing the record price increase of chicken and duck eggs, recently, businesses participating in the egg market stabilization program in Ho Chi Minh City have sent a written request to the Department of Finance to consider adjusting prices to increase prices because ” I can’t hold it any longer.”
Mr. Truong Chi Thien, General Director of Vinh Thanh Dat Food Joint Stock Company, said that the most recent increase in egg prices in the stabilization program was on April 2. After this price increase, the price of chicken eggs stabilized at 29,500 VND/dozen, duck eggs 35,000 VND/dozen. This price is currently lower than the enterprise’s cost and a big difference compared to the market price.
“Input prices have increased by about 40% compared to June 2021. Currently, 80%-90% of our eggs are sold in supermarkets and shops, stabilizing the market. With the volume sold every day. If we can increase the selling price by at least 10% compared to the number of registrations in the program, we are facing a loss. market” – Mr. Thien acknowledged.
According to some businesses, due to the stable selling price of eggs in supermarkets and outside the market, there is a difference of 5,000-6,000 VND/dozen, so egg consumption in supermarkets has increased sharply. There are supermarkets that have to limit each customer to only buy 1-2 blisters (10 eggs/blister) to limit the situation of buying together.
“The price of bran, transportation costs, and labor have all increased, so farmers only dare to re-herd in moderation, causing the supply of eggs to decrease by 40%-50% compared to the same period last year. For egg production and supply enterprises, Pressure also comes from soaring shipping and packaging costs. If prices are not adjusted, not only will businesses stabilize their losses, but also affect market supply in the next 4-5 months.” – Mr. Truong Chi Thien analyzed.
Mr. Nguyen Ngoc An, General Director of Vietnam Animal Industry Joint Stock Company (Vissan), hopes that input prices will only increase until mid-June, then level off and go down. Mr. An said that although profits were directly affected and the fresh meat business faced difficulties, the profit was also lower than the frozen meat business, the company still prioritized supplying meat products to the market. “hot” is slaughtered daily. “In the short term, Vissan is still holding out and monitoring market movements, not asking for price adjustment,” – Mr. An affirmed.
Talking to a reporter of Nguoi Lao Dong Newspaper, Mr. Nguyen Nguyen Phuong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, said that the purchasing power is still low, so currently, the egg supply for the city market still meets the consumption demand.
According to Mr. Phuong, the difference in the selling price of eggs inside and outside the market stabilization program was higher than the prescribed level (according to regulations, businesses are suggested to adjust prices if there is a 5% difference – PV). Although it has not received direct feedback from businesses, the Department of Industry and Trade of Ho Chi Minh City has calculated and will actively work with the Department of Finance to consider adjusting the price stabilization for businesses.
More supply from large enterprises
If small-scale enterprises and livestock farmers massively abandoned their barns and reduced their herds, in the past 2 years, some large enterprises have increased their investment and raised their livestock scale to 50% or even 100%. Since then, these enterprises have supplemented the domestic market with stable supply at reasonable prices.
Mr. Le Xuan Huy, Deputy General Director of CP Vietnam Livestock Joint Stock Company, said that on average, the company supplies 17,000-18,000 pigs to the market every day, an increase of 2,000 compared to the previous year. Industrial chicken sales also increased by about 10%. Particularly for chicken eggs, the company supplies about 1 million eggs to the market every day with stable prices. “Our source of pigs, chickens… supplied to the market has increased significantly, ensuring to meet market demand” – Mr. Huy said.
According to employees
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