Livestock Industry: Challenges and Obstacles

Overview

According to Mr. Tống Xuân Chinh, Deputy Director of the Department of Livestock Husbandry under the Ministry of Agriculture and Rural Development, Vietnam is one of the countries with the largest poultry population in the world, especially the second-largest waterfowl population worldwide. However, the growth rate of the poultry livestock industry has only reached an average of 6.3% per year from 2018 to 2022. In the first quarter of 2023, poultry livestock nationwide achieved stability with approximately 551.4 million poultry, a 2.4% increase compared to the same period in 2022. The estimated meat production reached 563,200 tons, a 4.2% increase, and the estimated egg production reached 4.7 billion eggs, a 4.5% increase compared to the same period in 2022.

While Vietnam’s poultry meat exports have shown positive growth, with the value of exported slaughtered poultry reaching over US$1.6 million in February 2023, doubling that of January in the same year and surpassing the figure from the same period in 2022. As for the import market, the United States is the largest exporter of chicken to Vietnam (accounting for 34.0%), followed by South Korea (29.2%), Brazil (22.7%), Poland (5.2%), Russia (2.2%), and other markets accounting for 6.8%.

Main difficulties faced by the poultry and livestock industry

Mr. Nguyễn Thanh Sơn, Chairman of the Animal Husbandry Association of Vietnam (AHAV), shared that despite the nearly 19% increase in poultry meat production in Vietnam in 2022, the profit margin in the poultry industry is sharply declining, and many livestock enterprises are facing difficulties and even losses. The sale price of poultry usually incurs a loss of around VND6,000-7,000 per kilo, while the production cost is VND29,000 per kilo but only sold at VND23,000 per kilo. Recently, the import volume of poultry meat in Vietnam has significantly increased, leading to a sharp decline in product prices and causing difficulties for local farmers and livestock enterprises.

Main challenges of the poultry and livestock industry:

• High production costs: The cost of poultry production has increased due to rising animal food prices and other inputs such as corn and soybeans. This prevents the poultry selling prices from increasing proportionally, resulting in reduced profitability.
• Poultry import: The quantity of imported poultry meat has been increasing rapidly, particularly from countries such as the United States, Brazil, and South Korea. The competition from cheap imported poultry meat reduces the selling prices for domestic farmers and poses challenges for livestock enterprises in accessing the market.
• Poultry diseases: Poultry diseases, such as avian influenza, pose significant challenges to the poultry and livestock industry. Preventing and controlling these diseases require investments in infrastructure, livestock management, and disease control measures.
• Changing consumer preferences: Consumers are increasingly concerned about health and environmental factors. Choosing organic poultry products, free from hormones and antibiotics, is becoming a trend. This puts pressure on the poultry and livestock industry to adapt production processes and meet market demands.
  

Source: Báo Quân đội nhân dân