March 2, 2021 | 10:18 GMT +7

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Friday- 06:19, 05/02/2021

Prices of raw materials for animal feed increase by over 30%

One of the reasons for the recent sharp increase in the price of live pigs is that the price of raw materials for animal feed in the world have increased by over 30%.
Due to the influence of the Covid-19 pandemic, the global logistics transport system was broken, causing a shortage of containers and ships of tens of feet in the past time. Photo: Nguyen Huan.

Due to the influence of the Covid-19 pandemic, the global logistics transport system was broken, causing a shortage of containers and ships of tens of feet in the past time. Photo: Nguyen Huan.

At a recent meeting with the delegation of the Ministry of Agriculture and Rural Development on the situation of goods supply on the occasion of the New Year's Day 2021, Mr. Nguyen Nhu So, Chairman of Dabaco Vietnam Group said that as a result of the Covid-19 related break in the global logistics transport supply chain, importing materials for Dabaco's oil pressing factory and animal feed ingredients is in a state of running while waiting for raw materials.

Mr. So said that Dabaco's Coba Vegetable Oil Factory is currently running from only 18 to 20 days per month because imported soybean material does not come in time, even though they have actively stored up to 100,000 tons of raw materials previously.

According to Chairman of Dabaco Vietnam Group Nguyen Nhu So, the 30-35% increase in raw material prices for the animal feed industry such as maize and soybean meal is one of the reasons for the increase in pig prices.

According to Mr. Vo Viet Dung, General Director of the South Hanoi Food Processing Group, in the past one month or so, the prices of raw materials for the animal feed industry have increased dramatically “due to the influence of Covid-19 pandemic.”

Specifically, corn increased by 30% from VND 6,000/kg to VND 7,800-8,000/kg. Soybean meal increased from VND 9,200 - 9,500/kg to approximately VND 15,000/kg. Meat and bone meal also increased by over 30% from VND 9,500/kg to VND 14,500/kg.

The increase in the price of input materials has caused the price of animal feed in Vietnam to rise sharply, putting pressure on the price of live pigs. Photo: MV.

The increase in the price of input materials has caused the price of animal feed in Vietnam to rise sharply, putting pressure on the price of live pigs. Photo: MV.

Vietnam is currently the country with the largest production of animal feed in Southeast Asia, with about 19 million tons/year. If adding aquatic feed, this figure could be up to 30 million tons.

Although Vietnam is a large animal feed producer in the region, Vietnam still has to depend heavily on imported raw materials for production. The main import markets for Vietnam's animal feed ingredients are the US, South America, EU, Russia ... areas that are heavily affected by the Covid-19 pandemic.

Facing the increase in the cost of exporting and importing goods due to the increase in ship and container rental prices, the Government recently requested the Ministry of Industry & Trade and the Ministry of Transport to coordinate with agencies, associations and related enterprises to tackle difficulties in goods export activities.

The Government also requires ministries, branches and functional units to review, clarify and strictly deal with violations in increasing the rent of ships and containers according to regulations.

Mr. Nguyen Trung Ha, Director of Plant Quarantine Department-Region I (Plant Protection Department, Ministry of Agriculture and Rural Development) said that through monitoring the import and export of agricultural goods through Hai Phong and Quang Ninh ports recently, they noticed that the lack of containers are mainly for export goods. It is not a real problem in  import goods.

VAN

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