Cheap meat imports cause crisis

by Editor fleischwirtschaft.com
Monday, November 26, 2012

A large number of Vietnamese farmers have had to close their broiler farms as they are unable to compete with the chicken meat that is imported in huge numbers to the country and is available at cheap prices.

Imported chicken byproducts, including wings, legs, and viscera, are sold at only half the rate of the locally raised broilers, according to the Southern Poultry Farming Association. A kg of domestically slaughtered chicken now fetches VND37,000, while a kg of imported wings and legs costs less than VND20,000, including transport, storage costs and a 20% import duty.

The Southern Poultry Farming Association asserted that the cost prices of raising chickens are similar in Vietnam and other nations, even those that export cheap chicken meat to the country such as the US, Argentina, and Brazil. But such countries are able to sell the meat at less than $1 to Vietnam as chicken wings, legs, and viscera are considered byproducts abroad, and thus fetch cheap prices, explained Au Thanh Long, deputy chairman of the association.

Meanwhile, Vietnam currently levies a 20% import duty on chicken byproducts, while the tariff for the whole poultry is 40%. Long said certain neighboring countries such as Thailand and Malaysia only allow imports of whole chickens, and byproducts are thus largely unable to enter these markets.

Vietnam should put in place technical barriers to protect local farmers from the imported meats, advised Sooksunt Jiumjaiswanglerg, CEO of CP Vietnam.
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