May 2, 2011
Vietnam producers seek to jack up feed prices
Feed producers in Vietnam have submitted a proposal to the Ministry of Finance to increase prices of their products, on the basis of continued price hikes of raw materials.
This was the 15th time the ministry has received such proposals since the beginning of 2010.
Some companies have been asking to raise prices since two weeks ago. Others have requested to raise prices starting May 1, the ministry said.
Le Ba Lich, chairman of the Vietnam Animal Feed Association, said the price of corn is currently up from US$240 to US$280 per tonne while, the price of soyoil cake has risen from US$420 to US$450 per tonne.
Since September of 2009, animal feed has been listed as one of the products in need of price-stabilisation; the price has increased 23-fold.
More than 400 animal feed mills nationwide provide poultry and aquaculture feeds. Most of them are foreign or joint-venture companies.
Vietnam imports 55%-60% of the raw materials used in animal feed production, like rice bran, corn, soy and powdered fish. The heavy reliance on imports has pushed up local prices especially when the global price accelerates.
Last year, the country''s total animal feed output was 12.9 million tonnes but the country had to import nearly eight million tonnes of materials worth US$2.7 billion, said the Ministry of Agriculture and Rural Development''s Department of Livestock Production.
It is estimated to have spent US$774 million on importing of animal feed and material in the first four months of this year. The country is expected to import about US$3 billion of raw materials for animal feed this year.