Premium Australian beef is cheaper than factory-farmed chicken?

According to statistics from the Department of Animal Health, since the beginning of the year, nearly 40,000 Australian cows have been imported to Vietnam for slaughter. Australian beef is being sold in supermarkets, stores, restaurants, hotels... at quite competitive prices.

According to the reporter's investigation, in the southern provinces, there are at least four enterprises importing Australian beef to Dong Nai port, Binh Duong general port, Ben Nghe port, and Hiep Phuoc port of Ho Chi Minh City. Imported Australian beef is declared by enterprises in two forms: whole beef and beef converted to weight (all converted to live beef). From January to May this year, only one enterprise in Dong Nai imported an average of more than 1,000 Australian beef per month, but since June, three more companies have jumped into the Australian beef business with the imported quantity increasing dramatically, up to 6,000 - 7,000 beef per month.

Australian beef is widely available in supermarkets.

Comparing customs data at the border gate, the price of Australian beef declared by businesses to apply surprisingly low import tax rates. The common tax rate for imported Australian beef, a type of meat that is selling quite well in the Ho Chi Minh City market, is only commonly at 1.09 - 1.3 USD/kg (CIF price at Vietnamese ports). In many customs declarations since the beginning of the year, there are only a few individual batches of Australian beef that businesses have declared the import price at around 2.25 - 2.75 USD/kg, which is double the common rate.

Domestic breeders, including pork and chicken importers, are quite surprised at the low price of imported Australian beef. Currently, according to breeders, the cost of raising industrial chickens on farms is at 30,000 - 31,000 VND/kg, and pigs range from 39,000 - 40,000 VND/kg. Even the price of imported chicken and pork from countries with the most developed livestock industries in the world such as the US, Brazil, India... cannot be lower than Australian beef... "I was surprised to know that the price of imported Australian beef is lower than that of industrial chicken!", said Mr. Nguyen Van Ngoc, a breeder in Dong Nai.

Unreasonably low price?

Some businesses importing Australian beef confirmed that the process of importing Australian beef is quite complicated and strict. It must ensure standards for transportation, storage, slaughtering... licensed by Vietnamese veterinary agencies and Australian experts. However, the price of Australian beef imported directly for slaughter is still much more competitive than domestic beef, because in reality, the weight of domestic yellow cows is only 250kg/head, while Australian cows are up to 400-600kg/head. The meat ratio of yellow cows after slaughter is only 50%, while Australian cows reach up to 60-65%. Currently, the price of Australian beef sold in supermarkets is quite soft, such as lean thigh 244,000 VND/kg, brisket 180,000 VND/kg, flank 135,000 VND/kg, tendon 120,000 VND/kg, beef shank 225,000 VND/kg. The two best and most expensive types of beef are tenderloin and fillet, priced at VND320,000/kg, about 5% more expensive than domestic beef.

The reason why Australian beef is competitively priced may be because the import price is declared at a "cheap" level, and of course the 5% import tax is also low in proportion to the price. If a business declares a customs price of 1.09 - 1.3 USD/kg for a kilogram of Australian beef imported to a Vietnamese port, it is only about 26,000 - 29,000 VND in Vietnamese currency.

Talking to reporters, Mr. Nguyen Dang Vang, Chairman of the Vietnam Livestock Association, said that Australia is one of the countries with a developed cattle breeding industry. Australian beef cattle are crossbred so they have better weight and meat quality than yellow cattle in Vietnam. However, industrial farming scale also requires the use of grass and industrial bran for food, so the price cannot be too cheap. Mr. Vang checked the source of information from Australia and said that the average price of Australian beef depending on quality is 2 USD/kg. Importing enterprises declare a price of 2.2 - 2.7 USD/kg when including transportation costs, which is reasonable. Mr. Vang said that if enterprises declare less than 1.5 USD/kg, it is "problematic".

The price of domestically raised yellow cattle being purchased by slaughterhouses ranges from 60,000 to 65,000 VND/kg (live cattle). Even the price of Thai or Cambodian cattle sold in the domestic market is many times higher than Australian cattle imported to Vietnam. A trader in Duc Hoa, Long An, said that the price of live cattle in Thailand is currently at 110 baht/kg, equivalent to more than 70,000 VND. If transportation costs, taxes and other costs are added to the border gate, it is three or four times higher than the price of Australian cattle that businesses declare for tax.

The question is, is Australian beef really that cheap?

According to Reading Newspaper