Poultry producers warn about bankruptcy threat

The Vietnam Poultry Association (VIPA) said in a recent petition to the government that inconsistent demand has caused prices to crash, sometimes to two-thirds of cost.

This, along with rising input costs, have brought many poultry producers to the verge of bankruptcy, and thousands of chicken and duck farms have had to scale down production or shut down, it said.

The smuggling of poultry is putting more pressure on domestic players, as every month thousands of tons of chickens that have been disposed by foreign commercial farms for reaching their production limits are sent to Vietnam through the borders.

The smuggle also increases the risks of viral infections and affect local farmers.

There are also big imports of cheap poultry parts such as legs, heads, and necks and frozen chickens from countries where they are surplus to demand, and this could harm Vietnamese consumers’ health, VIPA warned.

It urged the government to limit the imports of such products and crack down on smuggling.

Chicken imports have been rising in the last five years and now account for 20-25% of supply, according to the customs department.

VIPA also called for a 50% cut in quarantine fees and incentives for investment in the poultry sector in terms of land rentals and easy bank credit.