Why did China open its border, but the price of buffalo and cows in Nghe An still 'hit rock bottom'?

At this time, the price of buffalo meat is only 50,000-55,000 VND/kg, down 50% compared to before. Photo: Thanh Phuc

During the peak period, Mr. Vuong Van Hoan (Nghia Dong commune, Tan Ky) raised 35-40 fattened buffaloes, with selling prices ranging from 90,000-100,000 VND/kg, rotating 3-4 batches each year, also bringing in a fairly high income, about 200 million VND/year. In the past two years,buffalo priceThe price was low and difficult to sell, so Mr. Hoan's family fell into a loss.

Mr. Vuong Van Hoan said: “In previous years, the cheapest buffalo price also fluctuated from 70,000-75,000 VND/kg. From 2022 to now, the buffalo price has gradually decreased, from 70,000 VND/kg in May 2022 to now only 50,000-55,000 VND/kg. At this price, each buffalo loses an average of 5-7 million VND, not to mention the cost of care.”

The price of buffalo meat has dropped sharply, many households have reduced their herds from a few dozen to five or seven to limit losses. Photo: Thanh Phuc

The Nghia Dong Commune Fattening Cow and Buffalo Cooperative has 12 members, the largest household raises 30-40 cows and buffaloes; the smallest household raises 10-15 cows and buffaloes. For the past two years, the price of cows and buffaloes has dropped, causing many difficulties for the farmers. For example, Mr. Phan Van Chinh's household (Hamlet 7, Nghia Dong Commune) raises 20 cows. Although they are ready to be sold, the price of the cows has dropped so low that he is hesitant to sell them.

“With the current price, the loss is too heavy. We are holding out to see if the price will increase. Each buffalo is sold at 50,000 VND/kg, so we lose about 7-8 million VND. That is roughage and green food, we can still be proactive and self-sufficient,” said Mr. Chinh.

Beef prices are also low, making it difficult for the market to sell. Photo: Thanh Phuc

In Tan Ky district, most livestock households are self-sufficient in green food sources and can make use of agricultural by-products. Many households work in the livestock industry.fattening cattleIn Tru Son and Dai Son communes (Do Luong), people have to buy industrial feed, grass, straw, starch and hire people to graze them, so the investment capital for buffaloes and cows is many times higher. Therefore, when the market stagnates and prices drop, the loss is even higher.

The price of buffalo is low and it is difficult to sell, so purchasing power is also limited. According to traders, in previous years, Nghe An buffalo and cows were mainly imported to the northern provinces, from there, they were exported to China.

Ms. Bui Thi Minh (Chau Dinh commune, Quy Hop) is currently raising 60 cows, including 50 dairy bulls and 10 3B bulls. Both types have a price reduction of 20,000-25,000 VND/kg compared to the same period last year. Photo: Thanh Phuc

For the past two years, when China closed its borders, there was no place for buffalo and cows to sell, so prices dropped. In early 2023, although China reopened, the trade of buffalo and cows was still very difficult because informal exports were still restricted, while official exports of buffalo and cows encountered many difficulties. In addition, the total herd of buffalo and cows in the country has increased sharply in recent years, causing the domestic market to be saturated; along with the increase in imported food, competitive prices have somewhat affected the prices of buffalo and cows in the country.

Mr. Ngo Tri Tuan, onetraderA buffalo and cow buyer in Ky Tan commune (Tan Ky district) said: “Currently, buffalo prices are hitting rock bottom, cow prices are falling. Consumption is also facing many difficulties when Northern wholesalers are buying sparingly, and the domestic market has low demand. At peak times, I bought and sold about 100 buffalo and cows of all kinds each month, but now the amount of buffalo and cows consumed has been reduced to 1/3.”

The reason for the "rock bottom" price of buffalo and beef is due to difficulties in exporting to China, saturated domestic market and competition with imported buffalo and beef. Photo: Thanh Phuc

According to statistics from the Department of Animal Husbandry and Veterinary Medicine of Nghe An province, Nghe An currently has over 266,000 buffaloes and nearly 521,000 cows, mainly fattened buffaloes and cows for meat sale. The low price of buffaloes and cows, difficult to sell, has caused farmers to suffer. Some households want to keep their capital, take advantage of elephant grass and agricultural by-products, so they continue to raise them; most people have reduced their herds and some farms have switched to other livestock to avoid prolonged losses./.