Nghe An farmers find ways to adapt as animal feed prices increase

After 11 price increases since the beginning of 2021, animal feed has increased by 40% (on average, each kg of feed increased by 4,000 VND compared to before). Photo: Thanh Phuc

In the most recent price adjustment period (from February 15 to February 18, the companiesAnimal feed prices increased simultaneously.by 200 - 300 VND/kg. Accordingly, the total increase after 11 price adjustments is 40% (an increase of 4,000 VND/kg) compared to 2020. And according to the owners of level 1 agents of animal feed companies, starting from this March, there will be a new price adjustment period, accordingly, each kg of animal feed can increase by 300-500 VND/kg.

Mr. Nguyen Van The, owner of an animal feed dealer in Hung Nguyen town (Hung Nguyen), said: “Due to the impact of the COVID-19 pandemic, imported raw materials for production have been pushed up, causing the price of animal feed to increase. According to the latest announcement, a new price will be applied according to the next adjustment period in early March. The continuous increase in animal feed prices has caused difficulties for farmers, and the business of dealers like us has also become more sluggish. In addition, farmers often buy on credit and only pay when they sell, while the price of feed has continuously increased, so we also have to calculate interest on this debt.”

Continuously increasing feed prices cause many difficulties for livestock farmers. Photo: Thanh Phuc

According to forecasts, animal feed prices will continue to increase in the coming time, because raw material prices have not stopped increasing due to the risk of prolonged drought in major agricultural producing countries in the world. Meanwhile, the domestic situation, the Covid-19 epidemic and some diseases in the livestock industry have not ended, the prices of pigs, poultry, waterfowl, seafood ... have not recovered, are still on the decline, so livestock farmers face many difficulties, even losses.

AllQuynh Luu districtThere are 460 hectares of industrial shrimp farming area concentrated in the farming areas of Quynh Bang, Quynh Minh, Quynh Luong, Quynh Thanh, Quynh Yen... At this point, shrimp farming households are ready to enter the season.main season shrimp farming(According to the district's plan, the release schedule starts from March to the end of July 2022). However, the price of shrimp feed has increased quite high, with an increase of 2,000 - 4,000 VND/kg, so shrimp farmers face many difficulties.

Many shrimp farmers in Quynh Luu said they will reduce pond area and seed density to avoid losses when shrimp feed prices increase rapidly. Photo: Thanh Phuc

Shrimp farmers are looking for every way to adjust and balance the farming process to have a successful shrimp crop. Mr. Hoang Xuan Tin (Quynh Bang commune, Quynh Luu) is one of the households investing in shrimp farming with a large area in the district. This year's shrimp crop, according to the plan, he will reduce from 6 ponds to 4 ponds and reduce the farming density from 100-120 shrimp/m2 to 60-70 shrimp/m2 to balance the cost of feed.

Mr. Tin shared: “Increased feed prices will increase investment costs, and if not carefully planned, it is easy to suffer losses. According to calculations, 1 hectare of shrimp will yield an average of 7 tons when harvested; meanwhile, the cost for 1 hectare of shrimp is about 10 tons of feed, plus medicine costs, and the investment cost is about 500 million VND. If shrimp are sold at a price of over 100,000 VND/kg for 100 shrimp, then there is a chance of making a profit; but if sold at a price of less than 90,000 VND/kg, shrimp farmers will consider themselves to be at a loss.”

Many households have switched from raising pigs to raising goats to reduce input costs as animal feed prices continue to increase. Photo: Thanh Phuc

After increasing and reaching 55,000 VND/kg, by March 2, the price of live pigs had dropped to 51,000 - 53,000 VND/kg; the price of chickens at the farm is currently only 60,000 - 65,000 VND/kg. Meanwhile, the price of animal feed has continuously increased, causing many difficulties for farmers.

Mr. Nguyen Van Phuong, a pig farmer in Ngoc Son commune (Do Luong) said: “I just sold a litter of 5 pigs, and it turned out to be unprofitable. After this litter, I will temporarily stop raising pigs because the price of feed has increased, an increase of 300 VND/kg seems small, but each pig from the time it enters the herd until it is sold increases the cost of feed by hundreds of thousands of VND. Therefore, instead of raising many pigs, I will reduce the number to 2-3 pigs, feed them with vegetables, corn, rice bran and supplement them with ground fish heads, dried oil, and brewer's dregs instead of industrial feed. The remaining empty pigsties will be temporarily replaced by grass-fed animals such as goats and rabbits.”

Increase green food and roughage from agricultural by-products to replace industrial food. Photo: Thanh Phuc

According to calculations, feed accounts for about 70% of the production cost structure, so when the selling price of feed increases, farmers will not make a profit, or even suffer losses. Therefore, at this time, farmers are struggling to find suitable ways to adapt to minimize risks. Specifically, such as: reducing scale, reducing herds, and raising crops in alternating seasons, many households and farms are gradually switching to supplementing alternative feeds. Accordingly, agricultural by-products: corn bran, rice bran, peanut bran, brewer's dregs, molasses, fish heads, dried oil... are used to replace industrial feed. In addition, many households have switched to raising other types of livestock that consume less industrial feed such as goats, rabbits, cows, and buffaloes.

People are gradually shifting from small-scale farming to chain linkages to ensure profits. Photo: Thanh Phuc

In addition, one of the solutions that livestock farmers are aiming for isBuilding links through cooperatives and cooperative groups... to access the chain of businesses, proactively consume products and balance supply and demand to ensure consumption output, as well as stabilize selling prices. Enhance the role of cooperatives, cooperative groups, and linked groups in connecting with food suppliers to negotiate preferential prices and discounts on large quantities for members.