Restructuring livestock production in the direction of large-scale and high-value goods

30% of over-farrowing pigs for meat production are in a state of stagnation

MARD conducted a virtual conference on October 8 to discuss livestock production growth in the last months of 2021 and preparations for 2022.

According to a report from the Department of Livestock Production, the total output of live pigs for slaughter was estimated at over 4.7 million tons in the first nine months of the year, an increase of about 4.2 percent over the same period in 2020, as well as over 12 billion eggs and nearly 900,000 tons of milk; the livestock sector's production value was estimated to increase by 4.2 percent.

Currently, the buffalo herd totals about 2.34 million heads, a decrease of 3.8 percent year over year. The cow herd totaled almost 6.3 million head, an increase of 1.8 percent over the previous year. The overall number of pigs in the nation was about 28 million, a 5% rise. Poultry flocks totaled about 523 million heads, an increase of approximately 4.4%.

Industrial animal feed production was projected at 13.6 million tons in the first eight months of 2021, up approximately 5.5 percent from the same time last year. Animal feed output is expected to reach about 21.48 million tons in 2021, an increase of approximately 5.9 percent over the same time in 2020.

According to statistics from the General Department of Customs, the import turnover of animal products was projected at approximately USD 2.7 billion in the first nine months of 2021 (out of a total import turnover of USD 32.2 billion for the agricultural sector), an increase of 1.3 percent year over year.

In the first eight months of the year, total imported feed materials totaled about 14.45 million tons (including raw ingredients for aqua feed products), or approximately USD 5.22 billion (up 24.3 percent in volume and 47.4 percent in value over the same period in 2020).

The overall value of cattle exports was projected at USD 345 million, an increase of 17.5% over the same time in 2020. This data does not include exports of raw materials and animal and poultry feed.

According to Mr. Nguyen Van Trong, Deputy Director of the Department of Livestock Production, a series of production and supply chains for the livestock industry have been disrupted in recent months as a result of the complicated development of the Covid-19 epidemic, resulting in a rapid increase in the price of raw and input materials, most notably a 16-36 percent increase in the price of animal feed.

Meanwhile, the price of production was very cheap. There was a time when the farmed animal could only be sold for 25-30% of its value. Numerous wholesale and traditional marketplaces were temporarily blocked, production costs increased, circulation was disrupted, and market demand dropped, resulting in problems in consumption for livestock facilities and a backlog of animals in high barns, increasing the danger of loss.

Only companies and animal farms follow the cycle from production to consumption, offering distribution channels such as supermarkets and sophisticated retail store systems while yet maintaining steady consumption and selling prices.

In comparison to the average price in 2020, the present price has decreased significantly, from VND 25,000-30,000 per kilogram to VND 25,000-30,000 per kg. Although the price of live pigs has decreased significantly, the price of pork at butcher shops, traditional markets, and supermarkets remains high owing to concurrent increases in associated expenses, most notably transportation and epidemic control.

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, for a tropical monsoon nation like Vietnam, the goal of animal health is critical and first in animal husbandry.

Mr. Nguyen Van Long, Deputy Director of the Department of Animal Health, said at the conference that from the beginning of 2021 until the present, the unit and the provinces' specialized veterinary management agencies have issued Certificates of disease safety to patients. 57 locations, areas. By September 15, 2021, the whole nation will have 2,301 disease-free breeding facilities and regions spread over 54 provinces and cities.

The livestock business is moving toward a larger size and a higher ratio of products

According to Deputy Minister Phung Duc Tien, in addition to the difficulties created by the Covid-19 epidemic, agriculture in general and the livestock industry in particular have faced inherent difficulties for many years, including small scale, inadequate processing and warehousing infrastructure, and limited technology. While these obstacles cannot be overcome, the agriculture sector continues to confront diseases, market conditions, and climate change.

The cattle sector expanded by 4.53 percent in the first nine months of the year. Livestock remains a significant opportunity for the agriculture industry to expand and meet established goals.

According to MARD leaders, only tough times such as the current one expose all the difficulties and inadequacies in the agriculture sector's reform effort in general and the cattle business in particular.

Faced with obstacles, FDI and domestic businesses have re-evaluated the construction process and developed an international vision to reorganize, invest in high technology, chains, and origin traceability, and ensure food safety for export in order to achieve a more favorable outcome.

"The overall export value of animal products is projected to be 345 million USD in the first nine months of 2021. That is, however, just the beginning of a new era for the cattle sector. In the near future, under the leadership of the Government and MARD, business and the cattle sector will expand their involvement to a greater size and commodity ratio.

When Vietnam fully integrates into the international area and becomes a member of the global distribution chain, we must guarantee that we adhere to the market's criteria, norms, and standards. Even in the home market, as industrialization and modernization progress, the need for high-quality food has risen," Deputy Minister Phung Duc Tien said.

Sharing ideas to guarantee supply and avoid food shortages in late 2021 and early 2022, particularly during the approaching Lunar New Year, the Deputy Minister said that it is essential to predict the regional balance of supply and demand.

Second, MARD has recommended to the Government that the Ministry of Industry and Trade and the Ministry of Transport explore water transport and empty containers to decrease input costs for animal feed.

Third, MARD has requested that the Ministry of Finance provide a recommendation to the Government on the reduction of import taxes on certain raw commodities.

Fourth, the Deputy Minister stressed the need of seamless circulation in order to guarantee product supply, satisfy local demand, and be export-oriented.

"These are critical short- and long-term solutions that will enable us to reorganize the cattle sector effectively and efficiently in the last months of 2021 and 2022," Deputy Minister Phung Duc Tien stated. confirm.

The cattle industry's goal for 2022 is to grow production value by about 5.5-6 percent against that of 2021. Total output of live meat of all kinds will reach approximately 6.0-6.5 million tons, an increase of 5.5-6.0 percent; total output of live pork will hit approximately 3.97 million tons, an increase of 4.5 percent; total output of poultry meat will reach around 1.8 million tons, an increase of 5%; total egg production is approximately 16.8 billion, an increase of 5%; milk production is around 1.32 million tons, an increase of 5.5 percent; and honey production targets at 55,000 tons, an increase of 5%.