Sir, at present, the domestic livestock industry in general, and poultry farming in particular, is not only unstable, but also “inferior” to foreign direct investment enterprises. Could you please tell me more about this situation?

In recent years, the poultry industry, especially chicken farming, has become too hot. Many major investment projects are approved for investments not related to the export plan. Meanwhile, the number of imported frozen chicken meats is steadily increasing every year, resulting in oversupply and putting great pressure on the domestic consumption market. As a result, both companies and farmers have lost money in recent years.

In addition, today it is a sad reality that domestic companies (including livestock, feed and veterinary medicine) and even domestic breeders are lagging behind companies with capital investment. foreign direct investment (FDI). While the number of ranchers has fallen sharply in recent years due to losses, FDI companies are still expanding their livestock production in Vietnam and now dominate the production of slaughter pigs and broilers.

There are three main reasons why Vietnamese companies lose their position in front of foreign direct investment companies in their home country.

The first, FDI companies have a long history of development and therefore have strengths in capital, science and technology.

Monday, FDI companies have extensive corporate governance experience and a wide network of connections, allowing them to always be at the forefront, leaving Vietnamese companies far behind.

Tuesday, FDI companies develop not just a product line or a value chain, but an entire ecosystem, from the rearing of animals, feed and veterinary medicines to the commercial rearing and processing of animal products.

Most of the leading FDI companies in the Vietnamese market are currently global brands. In particular, some companies also come from countries with highly developed animal husbandry such as the USA, France, the Netherlands, Belgium, Canada, China and Thailand.

In the past, while domestic breeders had to export broiler coops below cost and suffered losses, our country still imported chickens from abroad on a large scale. Why is this situation, sir?

First of all, it can be said that the rules for importing animal products in our country are still simple and easy compared to countries with a developed animal husbandry. In order to export poultry meat and eggs, we have to deal with many strict technical barriers in the importing countries, which make our animal products vulnerable and damaged right on the farm.

In the last 5 years, the annual amount of imported chicken meat has increased steadily (over 15%/year) and accounts for 20-25% of the total chicken meat consumed in the country. In addition to officially imported chicken products, a large amount of discarded laying hens is informally imported or even smuggled across borders every year (expert estimates are around 200-250,000 tons/year).

In addition, in our country there are currently no specific regulations on imported meat products using ractopamine and cysteamine as lean substances in 26 countries: USA, Australia, Canada, Brazil, Indonesia, Maylaysia, Mexico, New Zealand, Philippines, South Africa, Korea, Thailand … While in the country, breeders are banned from using these two hormones on livestock and poultry. This is also the reason why chicken meat from abroad is still massively imported into our country.

What measures do you think should be taken to prevent this situation?

The first, must ban the import of meat products from countries that use ractopamine and cysteamine to create a fair and healthy competitive environment for domestic manufacturing and livestock companies.

It is time to take non-tariff measures to protect domestic production and avoid a trade deficit in poultry products like in the past. It is recommended that ministries and branches soon set up technical barriers in an appropriate manner and in line with international practices (can refer to the experience of Thailand and some countries in the region).

At present, there are many products used as cattle feed, such as cattle and poultry legs, heads, necks, wings, gizzards, even cattle products that contain banned substances, but are still smuggled into the market. Vietnam makes food for people. If this situation is not brought under control, domestic production will be extremely unstable.

Monday, There is a need to strengthen control, focus on preventing, detecting and strictly treating cases of illegal transport of animals and animal products across the border, including discarded laying hens, and creating a safe border corridor to prevent disease recurrence to prevent and put pressure on the domestic market. Ask the Department of Industry and Trade to coordinate with the Department of Public Security to increase control and surveillance of illegal imports of animals and animal products across the border.

We recommend relevant ministries and sectors to coordinate with industry bodies to build sufficiently strong technical barriers for imported meat to create a healthy competitive environment for domestically manufactured products.

What recommendations do you have for the authorities to eliminate difficulties for domestic livestock farms?

Agriculture is an area that always faces many risks and difficulties, with the livestock sector being the most difficult at the moment. In addition to diseases and weather conditions, the pressure from free trade agreements on the domestic market for livestock products is enormous. Therefore, it is proposed that the government and the National Assembly consider lowering the corporate tax rate for livestock companies. Specifically, companies in the agricultural production sector are eligible for a 35-40% cut, while companies producing livestock, feed and veterinary medicines are entitled to a 45-50% cut so that companies have capital to invest in agricultural production. maintain production.

In addition, it is recommended that ministries and branches review and reduce unnecessary administrative procedures, especially shorten the time for processing documents, to avoid enterprises missing out on production and business opportunities. It is suggested that the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology will consider abolishing the regulation on certification and declaration of conformity for animal feed products allowed to be placed on the market in Vietnam in the near future.

From 2018 to date, the Ministry of Health has not regulated that compliance must also be announced for products that have a direct impact on human health, such as B. Functional food, medical nutrition, etc. and other products. Pre-packaged processed products, food additives such as cakes, candies, instant noodles… There is no country in the world that has regulations on animal feed compliance.

In fact, the implementation of regulations to announce compliance with technical regulations wastes time and human resources for companies, as they have to carry out many duplicated and complicated administrative procedures, increasing production costs such as manufacturing costs, testing, packaging reprint costs, labels, changing batches. .., there are also other legal regulations for the quality control of animal feed. This is one of the reasons why the cost of feed is increasing in the current difficult situation for livestock farming in our country.

In order to control the quality of animal feeds circulating on the market, it is recommended that specialized agencies intensify post-controls on the quality of animal feeds, especially in the current context due to the low prices of input materials. quit In order to be price competitive, some companies are increasingly facing product quality deterioration.

VnEconomy 05/10/2023 08:00

The content of the article was published in Vietnam Economic Review No. 19-2023 on May 8, 2023. Welcome readers to read below The:

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