Prices of animal feed in Vietnam will increase by 10%-15% form mid-March when poultry farming is resumed, as producers seek to make up for losses they suffered during the bird-flu outbreaks, the Vietnam Feed Association forecast.
Association chairman Le Ba Lich told the Daily producers of animal feed, especially poultry feed, pushed up the prices to offset losses caused by bird flu. The association estimates that the three-month epidemic has caused losses totalling some 700 billion dong (around US$44.5 million) to the feed makers.
During the epidemic period, producers could neither sell poultry geed nor get payments for their feed from poultry farmers, who also suffered form huge losses. Another reason, according to Lich, is the increased cost of materials, fuel and transport costs.
In southern Vietnam, prices of animal feed have stared to increase, normally by a single-digit rate.
Early last week, the association proposed the government allow feed makers to import 500,000-600,000 tonnes of corn at a 0% tariff to stabilise the feed market. The current import tariff for corn is 5%, compared with 7% last year.
The association also proposed that import tariffs for amino acids, which are vital for making animal feed, be lowered to 5% from the current 15%-20%, and value added tax on the important materials down to 5% from the current 10%.
In addition, the association proposed the government increase the duration to pay import taxes to 60 days from the current 30 days. Vietnam has 138 animals feed factories in all with combined capacity of more than three million tonnes a year, and 30% of this being poultry feed.