High animal feed prices due to large 'commission' discounts
Although the inspection results at the enterprise did not detect banned substances and price manipulation, the phenomenon of "commission" discounts was too large, leading to the price of animal feed being pushed up.
The Ministry of Agriculture and Rural Development has just held a press conference to announce the results of the interdisciplinary inspection team (including the Directorate of Fisheries, representatives of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Public Security, the Ministry of Finance and the Ministry of Planning and Investment) that inspected 7 foreign-invested (FDI) animal feed production enterprises.
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| Scene of the press conference. Photo: VGP/Do Huong. |
The 7 enterprises in the inspection list include: CP Vietnam Livestock Joint Stock Company, Uni-President Vietnam Co., Ltd., Grobest Vietnam Co., Ltd., Cargii Vietnam Co., Ltd., TongWei Vietnam Co., Ltd., Guyomarc'h Vietnam Co., Ltd. and Thang Long Biotechnology Co., Ltd.
The inspection focused on the quality of animal feed; checking the phenomenon of "colluding" to manipulate animal feed prices; checking the transfer pricing situation, sending prices to the parent company to report losses...
The test results did not detect banned substances or price manipulation, but the "commission" discount was too large, accounting for 20-30%, leading to high animal feed prices.
Mr. Dien said that there are agents who sell only a few dozen tons of animal feed each year but are given cars worth billions of dong by the manufacturing company.
"Faced with this situation, the Directorate of Fisheries has proposed to the Prime Minister to assign relevant ministries to inspect transfer pricing. The police will clarify whether there is a parent company - subsidiary company for transfer pricing or not. The Directorate of Fisheries is responsible for quality inspection. We request the Ministry of Finance to more closely inspect the discount and 'commission' money of up to 20-30% that has pushed up feed prices, affecting farmers," Mr. Dien emphasized.
Over the past 15 years, many large enterprises and corporations in the world have participated in the production of animal feed and aquatic products, such as FDI enterprises from countries and territories such as Thailand (CPC), Taiwan (Grobest, Uni President, Asia Nutrition...), China (Thang Long, Tongwei, Hoa Chen...), Korea (CJ Master...), France (Tomboy, Proconco...), America (Cargill...). These enterprises are increasingly growing and dominating the domestic market. For shrimp feed alone, 3 FDI enterprises, Grobest, Uni President, and CP, have accounted for more than 80% of the market share, with the annual output of these 3 enterprises being over 600,000 tons. |
According to chinhphu.vn
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