Is the poultry market reaching the bottom?

According to the Livestock Husbandry Department under the Ministry of Agriculture and Rural Development, the number of poultry flocks in Q1 this year was equivalent to that 2020-end, the wholesale of poultry meat was about 420,000 tons, up 5.2%, eggs were estimated at 4.3 billion, an increase of 3. 5% against the same period last year.

Over the last quarter, the prices of breed chicken in the northern and central parts of Vietnam reduced by 12% to 20%, ranging from VND 5,500 -6,400 each while those in the southern part of Vietnam increased by 21-40%, also recorded at VND 5,500 -6,400 each.

It is forecasted that the prices of poultry products are on the upward trend in May – July this year due to the lack of supply as the number of breeds put into commercial production reduced by 50% inter-quarter and the amount of the poultry feed went down around 40%.

Director of Toan Thang Eco Vet said Pham Duc Thang said that the vaccines, drugs, and dietary supplements on the poultry segment dropped around 60% to 62% on average leading to a series of difficulties that enterprises have to tackle, especially during Covid-19. While the director-general of Greevet Bach Quoc Thang shared its revenue on vaccines, drugs, and dietary supplements for poultry also went down 40%.

In recent months, many livestock feed mills have been forced to stop operating and some were unable to sell their products during April and May. It represents the unprecedented difficulty in the history of the poultry industry in Vietnam.

Nguyen Thanh Son, chairman of the Vietnam Poultry Association noted that never a time has the poultry industry faced difficulties like today when the breeders are shouldering loss.

The massive herd growth made up for the shortfall in pork due to the impact of African swine fever, along with an increase in imported chicken meat production while the total demand plummeted leading to the low price of poultry products in 2020 and the first quarter of 2021.

Poultry product prices reduce low while the feeding prices continue to hiking leading to the reduction in herd among firms, farms, and breeder households. According to the forecast of the Vietnam Poultry Association, with the current decline in the herd, there will likely be a shortage of domestic poultry meat and eggs supply in Q3 and Q4, leading to the increase in imported chicken products. This affects not only farmers but also food security.

The Chairman of the Vietnam Poultry Association stressed that it’s time for the ministry and relevant agencies to plan on a stable macro policy for the sustainable and efficient development of the poultry industry in Vietnam.