Massive cattle imports are causing the price of live cattle in Ha Tinh to plummet

According to statistical data from the Sub-department of Livestock and Veterinary of Ha Tinh province, the total number of cattle in the area has been steadily decreasing in recent years compared to about 5 years ago. Currently, there are only slightly over 168,000 head of cattle, whereas in 2019, the number amounted to 180,000.

"The reason for the decrease in the total cattle herd is the sluggish market and the sharp drop in the price of live cattle due to the significant influx of imported cattle, leading to losses for cattle farmers, which discourages them from expanding their herds," said Mr. Phan Quy Duong, Head of the Livestock Management Department at the Sub-department of Livestock and Veterinary of Ha Tinh.

Having been in cattle farming for nearly 6 years, but due to the excessively low price, this year, Mr. Pham Van Minh's family in Tan Lam Huong commune, Thach Ha district, had to reduce their herd by half.

Mr. Minh stated that in the many years he has been supplying beef cattle, he has never seen cattle prices as low as they are now. The price of live cattle in previous years ranged from around 90,000 to 95,000 VND/kg, peaking at 110,000 VND/kg. However, from the end of 2021 until now, the price has only been around 70,000 VND/kg.

"In 2022, I bought breeding cattle at a high price and sold them at a low price, so there was almost no profit. Previously, my family raised 23 to 25 cattle of 3B type each year, but now there are only 12 left because the more cattle we raise, the heavier the losses," said Mr. Minh.

Sharing the same thoughts, Mr. Pham Van Bien, a resident of the same commune, recently sold a pair of their cash cows on the afternoon of August 4^th for 19.5 million VND each, but he didn't feel happy. According to Mr. Bien, if it were based on the prices before 2022, these 2 cows would have been sold for about 30 million VND each.

"For over a year now, the price of cattle has only been around 60,000 - 70,000 VND/kg. We have to maximize the use of feed sources for our cattle, from grass and local grazing areas. Occasionally, we can “fatten up” the cattle with a few bags of bran, but relying solely on industrial feed is not sustainable. Not only are cattle prices low, but it's also difficult to sell, so livestock farmers are not enthusiastic about investing anymore. In my family's case, we used to raise 12 - 13 head of cattle per batch, but now we only have 5," said Mr. Pham Van Bien.

In the “capital” of cattle farming in the mountainous district of Huong Son, the market situation is no different from Thach Ha district. Mr. Nguyen Van Ly from Quang Diem commune mentioned that his family has a tradition of raising grass-fed cattle in hillside gardens, maintaining a herd of 10 - 12 head. In the past, traders were very interested in grass-fed cattle and purchased them at prices 15 - 20% higher than hybrid cattle. However, for more than a year now, the price of grass-fed cattle has decreased even more than the previously sought-after hybrid cattle.

"Although the main feed source is natural, the price of a cow that used to be sold for 20 million VND is now reduced to only 14 – 15 million VND, so we are not enthusiastic about raising many more," Mr. Ly said. He also mentioned that after releasing another 3 cows from the stable, he plans to reduce his herd to around 4 – 5 cattle.

According to livestock farmers, due to the influx of cheap imported cattle, the price of live cattle in Ha Tinh has been fluctuating since the end of 2021 and has now been in a state of “free fall”. Currently, traders are purchasing cattle at prices ranging from 55,000 - 70,000 VND/kg (depending on the breed), which is a decrease of about 30% compared to before. Meanwhile, the high cost of feed has left livestock farmers with no profit.

In fact, many households have had to “short sell” their cattle due to being unable to sustain the cost of feed. For instance, at the beginning of 2023, Mr. Mai Xuan Quang from Thanh My hamlet, Thuong Loc commune, Can Loc district, had to sell 19 fattened cattle that hadn't reached the desired weight. According to his estimation, selling these young cattle caused his family to suffer losses of nearly a hundred million VND, including the cost of purchasing breeds, bank interest, feed, and care expenses.

Not only individual households but also livestock cooperatives and collective farms in the province are reducing their herds due to the sharp drop in cattle prices.

Mr. Dang Dinh Luong, Director of the Dong Mon Cattle Breeding Cooperative in Ha Tinh, stated that the cooperative has 13 members. The total herd used to be around 100 cattle, but now it's reduced to just over 50 cattle. With the current selling prices, their income is insufficient to cover the expenses.

"In the past, we fattened cattle with industrial feed, but now we have to use feed from agricultural products to reduce costs. If the price of live cattle doesn't improve soon, there's a high likelihood that we will have to reduce our herd even further," Mr. Luong, while feeding the cattle, expressed his concerns.

The Sub-department of Livestock and Veterinary of Ha Tinh advises people not to increase their herds during this time, and suggests closely monitoring market demand to be responsive. However, any reduction strategy should be appropriate and not excessive, as a sudden reduction could disrupt the supply chain, leaving no cattle to sell when the market recovers. Livestock households should also consider forming cooperatives to collaborate in breeding, avoiding price manipulation and creating consumers network.