Livestock farming at risk of mass bankruptcy, association recommends series of urgent solutions

The Vietnam Poultry Association (VIPA) has just sent a petition to the Prime Minister, the National Assembly Standing Committee and 7 relevant ministries on solutions to remove difficulties for the poultry industry.

The petition stated that due to the prolonged negative impact of the Covid-19 pandemic, input material costs increased to record highs, the consumer market was unstable, and output product prices dropped sharply (at times, the selling price of some poultry products was only 2/3 of the production cost), causing the poultry industry to face numerous difficulties.

Many poultry farms and businesses are at risk of bankruptcy; thousands of chicken and duck farms have had to reduce production scale or temporarily suspend operations due to prolonged losses.

Blocking smuggled goods, tightening official imports

To resolve difficulties for the poultry industry, VIPA recommends considering the following groups of urgent and long-term solutions.

Specifically, strengthen inspection, supervision and control of smuggling of poultry and poultry products at border gates, trails, openings in border areas, seaports...

Farmers are suffering heavy losses because they have to sell chickens below cost. Photo: Nhat Sinh

According to incomplete statistics from VIPA, tens of thousands of tons of discarded live laying hens are smuggled across the border into our country every month. This is the cause of increased disease risks for the domestic poultry industry.

Many livestock by-products are very cheap such as poultry feet, heads, necks, wings, skin, gizzards, especially frozen discarded laying hens with their heads, feet and organs removed, are still imported in very large quantities.

If this situation is not controlled, not only will domestic poultry production become more and more difficult, but it can also have consequences for the health of our country's consumers.

VIPA also recommended strengthening non-tariff measures to limit the trade deficit of poultry products to protect domestic production.

It can be said that compared to countries with developed livestock industries, our country's technical regulations on importing livestock products are unclear and not strict. VIPA cited that since 2014, the use of Ractopamine and Cysteamine as growth stimulants and lean meat for livestock has been banned in 160 countries around the world, including our country (due to the risk of causing cancer to users). However, paradoxically, every year Vietnam still imports a large amount of pork, beef and chicken from a number of countries that are allowed to use the above two substances for livestock and poultry.

VIPA proposes to adjust a series of taxes and fees in livestock farming. Photo: Nhat Sinh

Meanwhile, in order to export livestock products, Vietnamese enterprises must endure many strict technical barriers from importing countries, causing our country's livestock products to be disadvantaged and weak in the domestic market.

Therefore, to create a healthy and equal competitive environment for domestic businesses and breeders, especially without creating risks that adversely affect consumers' health, VIPA recommends that the Government promptly issue a document banning the import of meat products from countries that use growth stimulants such as Ractopamine and Cysteamine.

At the same time, it is recommended that the Ministry of Agriculture and Rural Development and relevant ministries and sectors immediately implement non-tariff measures to protect production and the health of Vietnamese consumers. Accordingly, it is necessary to promptly build technical barriers in a reasonable manner and in accordance with international practices to limit the situation of importing poultry and poultry products in deficit as in the recent past.

Review quarantine fee for orders of 5-10kg of meat equal to the fee for 1 container

In addition, VIPA also recommended reviewing and cutting some quarantine fees and unnecessary administrative procedures to reduce production costs. Because according to regulations, even for small customers who only order about 5-10kg of meat, when quarantined, specialized officers still count it as a shipment and charge 100,000 VND, equal to the quarantine fee for a container, which is not convincing. This regulation has increased production costs at poultry slaughterhouses.

VIPA recommends that the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology consider abolishing the regulations on certification and declaration of conformity for animal feed and supplementary animal feed products that have been permitted to circulate in Vietnam. In fact, the implementation of the above regulations has been wasting time and human resources for businesses, increasing production costs.

In the long term, VIPA recommends, develops and implements a key program for exporting poultry products; it is necessary to standardize statistical data on production and trade of the poultry industry.

Recommend that the Ministry of Planning and Investment submit to the Government soon amendments and supplements to a number of specific policies for the livestock industry in Decree No. 57/2018-ND-CP on mechanisms and policies to encourage businesses to invest in agriculture and rural areas such as: exemption and reduction of land tax; support for investment credit.