The complicated development of the Covid-19 epidemic, along with the continuous increase in the price of animal feed, while the price of live pigs and slaughtered poultry are “in free fall” has negatively impacted the livestock sector.

Pig farming is struggling.

How to make the livestock industry stable and ensure meat supply for the Chinese New Year market in 2022 is the most pressing question discussed by delegates at the online conference “Livestock development in the last months” 2021 and plan for 2022″ organized by the Ministry of Agriculture and Rural Development on October 8, 2021.

MILLIONS OF UNSOLD PIGS, OVERAGE POULTRY

According to the Department of Livestock Production, in the first nine months of 2021, the total output of live meat for slaughter will reach over 4.7 million tons, the production value of the livestock sector is estimated to increase by 4.2% over the same period last year.

As for herbivorous cattle, the whole country’s cow herd now reaches nearly 6.3 million heads, up 1.8% over the same period in 2020; buffalo herd remained 2.34 million heads, down 3.8%; Currently, the country has over 2.65 million goats and about 115,000 sheep.

The country’s pig herd by the end of September 2021 has about 28 million heads, up 4.2% over the same period in 2020. Localities with large pig herds such as Dong Nai, Hanoi, Binh Phuoc, Bac Giang, and Thanh Hoa. The country’s live pork production in the first nine months of the year is estimated at about 2.9 million tons.

Recently, due to social distancing, consumer demand has decreased a lot, so the herd of over-age pigs is still stagnant in the barn, about 30% of which is over the age for sale. This problem has had a negative impact on the chain, causing the price of slaughtered pork to drop sharply.

Specifically, if in March and April 2021, the price of live pigs for slaughter is about 70,000-75,000 VND/kg, then in July and August it will decrease to 50,000-55,000 VND/kg. In September 2021, the price continued to decrease. Up to now, the average live hog price is ranging from 40,000-49,000 VND/kg depending on the region.

“Someone told me today that live hogs have dropped to 33,000-35,000 VND/kg, traders still don’t want to catch them,” said Nguyen Van Trong, deputy director of the Department of Livestock Production.

Very pessimistic about output price movements in the near future, Mr. Nguyen Van Thanh, Chairman of the Northern Central Region Livestock Association, said that live hog prices will still be volatile and may continue to fall deeply.

“Meanwhile, the production cost, if farmers have to buy breeding stock, each kilogram of live pork for slaughter has reached 60,000-65,000 VND. As for large-scale livestock enterprises in the chain from raising sows to raising pigs for meat, the price is about 45,000-50,000 VND/kg”, said Mr. Thanh.

As for poultry, the Department of Livestock Production said that the poultry herd is currently about 523 million heads, an increase of about 4.4% compared to October 2020. However, due to a decrease in market demand and the complicated situation of the Covid-19 epidemic, the backlog of poultry in cages is high.

Especially in the Southeast and Southwest provinces, livestock enterprises in August and September only consume 5-10% of the number of white feathered industrial chickens.

Currently, the amount of industrial chickens that are too old for slaughter in this area is over 9.3 million with a weight of over 3.8kg/head, while normally chickens are released at 1.8-2.5 kg. With colored chickens, there is also a backlog of about 30% of the raised number.

Besides pigs and poultry, the price of some large livestock is also not high. Beef prices range from 85,000 to 100,000 VND/kg. The price of goat meat is at 120,000 – 140,000 VND/kg.

WHAT YOU NEED TO DO IS CONSUMING OUT UNSOLD PRODUCTS 

Explaining the tragic situation of the livestock industry today, Mr. Nguyen Van Trong said that the complicated development of the Covid-19 epidemic worldwide and in Vietnam caused a series of disruptions in production chains. production and supply for the livestock industry.

More specifically, Mr. Trong said the price of input materials increased sharply, especially feed increased by 16-36%. Production costs increased, while circulation was interrupted, many wholesale markets and traditional markets were temporarily closed, making it difficult to sell livestock products. This situation causes farmers to lose a lot and stagnate capital. Only large enterprises and livestock farms can sustain.

Chairing the conference, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that many localities have now controlled the Covid-19 epidemic. Therefore, the task is to promote the development of production and consumption to support and make up for the shortfall in the southern provinces when the Covid-19 epidemic is still complicated.

Localities need to continue to restore and stabilize the development of herds of poultry and grass-fed cattle to serve increased consumption in the last months of 2021 and especially the demand for livestock products increases from 10-12% before, during and after the Lunar New Year 2022.

“What needs to be done now is to try to consume all livestock and poultry products that are still in stock in the barns of livestock production facilities,” emphasized Deputy Minister Phung Duc Tien.

For the livestock industry to stand firm, it is essential that the Government, ministries, branches, and localities have strong solutions to remove them. The Ministry of Agriculture and Rural Development proposed that the Government direct the development of a mechanism to open up social activities for people who have been vaccinated with 1 dose and 2 doses of vaccine in provinces and cities to have a single worker production, circulation and consumption of goods.

To promote circulation and consumption of livestock products at the end of the year, the Ministry of Agriculture and Rural Development proposed the Government consider a loan support package to restore production for farmers directly engaged in production difficulties due to Covid-19 in localities implementing social distancing.

Ministry of Industry and Trade, localities consider reopening traditional markets, wholesale markets. Along with that, it is necessary to arrange buffer zones and transshipment stations to gather goods from outside the province to move under the inspection and supervision of inter-sectoral forces.

“Diversify product distribution channels, strongly develop e-commerce platforms to reduce pressure on distribution channels such as supermarkets and convenience stores”, proposed Deputy Minister Phung Duc Tien.

On the side of the Ministry of Finance, the Ministry of Agriculture and Rural Development proposed that it is necessary to soon take measures to reduce import tax on animal feed materials, input materials, credit support, and bank interest rates for establishments. production to reduce input costs for production in the last months of 2021 and the Lunar New Year 2022.