The 'gloomy picture' of the livestock industry in Dong Nai

Businesses and farms suffer heavy loss

Mr. Nguyen Xuan Hung, manager of Mr. Nguyen Van Ngoc's chicken farm in Thai An hamlet, Tan An commune, Vinh Cuu district, Dong Nai province, said that because chicken prices in the market in the past time were much lower than the cost. Therefore, the farm has not raised new chickens in the past 2 months.

According to Mr. Hung, in recent years, due to the high feed price, the production cost of white chicken has also increased quite a lot. Previously, 1 kg of old chicken bran averaged about VND 9,000/kg. Now, it is VND 13,500. So, a few years ago, to produce 1 kg of chicken, the farm cost about VND 17,000-18,000 for bran. As currently, to get 1kg of chicken, the amount of money the farm spends is over VND 20,000.

According to Mr. Nguyen Van Ngoc's calculations, the total direct cost to produce 1 kg of white chicken is currently VND 31,000-32,000/kg. The cost of bran alone is VND 21,600/kg. In addition, there are other costs such as seeds, electricity, water, medicine, workers' wages, etc. If the farm's depreciation expense and bank loan interest are added, the production cost per kilogram of white chicken will be even higher.

While the production cost of white feathered chickens has increased because of the high feed price, the price of commercial chickens from before the 2023 Lunar New Year until now is at a low level, sometimes only VND 16,000-17,000/kg. Recently, the price has fluctuated from VND 28,000 to VND 29,000/kg, which is much lower than the cost, making white chicken farmers and businesses suffer heavy losses.

Mr. Le Van Quyet, Vice Chairman of Dong Nai Husbandry Association, shared that since the Covid-19 epidemic until now, chicken farmers in Dong Nai have always been in a difficult situation. The reason is due to the high feed price from the disruption of the supply chains of animal feed ingredients in the world market, while chicken prices fell sharply.

With the current situation, only chicken farms that are participating in closed breeding chains or outsourcing businesses are still operating stably.

Not only farmers but businesses are also facing many difficulties. Many large enterprises have had to drastically reduce both the size and output of white feathered chickens in the past time because they could not bear the deep and prolonged loss for a long time.

Losing VND 1 million per pig

Not only chickens but another important livestock of Dong Nai province, the pig, is also in trouble. 

Mr. Nguyen Huu Thang, owner of Hoa Phuong farm (Tan An commune, Vinh Cuu district), is a famous breeder in Dong Nai. With more than 20 years of working in pig farming, Mr. Thang has extensive knowledge and experience in calculating and organizing production so that prices are low. But with the feed price and raw materials rising too high, the livestock cost of Hoa Phuong farm has increased a lot compared to a few years ago.

Currently, the bran fee for each pig alone has reached VND 3.8-4 million. With VND 1.2 million of the cost for 1 piglet, the production cost of one pig is VND 5.2 million. With the current selling price of VND 48,000/kg of live weight per pig sold, Mr. Thang immediately loses VND 400,000.

Mr. Nguyen Kim Doan, Vice Chairman of Dong Nai Husbandry Association, said that the loss of VND 1 million per pig sold is now quite common. Along with African swine fever, the price of feed has increased too high in recent times, while there have been times when the cost of pigs has dropped too low, causing a series of small farmers in Dong Nai to quit their jobs. If a few years ago, small-scale farming accounted for 70% of the total herd in this province, but now only about 25-30%.

According to Mr. Doan, after dozens of consecutive price increases, the price of pork bran is currently 40% higher than in 2020. Livestock services also increased by 10-15%. The livestock industry in the country has never been in such a difficult situation as it is now. In the past, there were times when the price of pork was low, the price of chicken or beef was reasonable, and vice versa.

But this year, pig, chicken, and cow farmers face losses. Due to the high feed price, white feathered chicken nationwide is currently at VND 30,000-32,000/kg, and color chicken VND 39,000-42,000/kg.

The cost of pigs produced by FDI companies is about VND 53,000-55,000/kg, from VND 54,000-56,000/kg in farms and in small households up to VND 58,000-60,000/kg. Thus, with the current selling price, from businesses to small farmers, they all suffered heavy losses. This is an important reason why after only a few years, from about 4 million people involved in animal husbandry across the country, there are now only more than 2 million people.